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Q 7.1: Derek is nearing retirement age and is trying to determine if he is financially able to retire. He is trying to consider all

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Q 7.1: Derek is nearing retirement age and is trying to determine if he is financially able to retire. He is trying to consider all the types of risk that could affect his decision. Derek has talked with his financial advisor about his concern with his money not keeping up with the cost of living during his retirement years. In other words, if the price of a gallon of milk is $3.95 today and increases to $5.50 next year, his money will buy less of the goods that it currently buys. This is an example of A interest rate risk. B inflation risk C business risk. D liquidity risk

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