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QUESTION 106 A European fixed-income mutual fund lists inflation risk, interest rate risk, and credit risk as its three main drivers of volatility in the
QUESTION 106
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A European fixed-income mutual fund lists inflation risk, interest rate risk, and credit risk as its three main drivers of volatility in the fund. The fund's largest allocation is to the European automobile industry. The fund's shareholders should least likely be concerned about:
a. The change in price levels in Germany.
b. An upward shift in the global yield curve.
c. Downgrades in the German automobile industry.
d. Prepayments in asset backed securities.
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