Multiple Choice
Which one of the following is a true statement?
A) When choosing an investment, it is not necessary to consider the risk factor.
B) During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation.
C) The interest rate risk associated with investments in bonds is the result of changes in business conditions faced by companies.
D) The risk of business failure deals with changes in the value of stocks and bonds due to changes in interest rates in the market.
E) The prices of stocks, bonds, and other investments never fluctuate in the market.
Correct Answer:
Verified
Correct Answer:
Verified
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