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  3. Study Set
    Principles of Managerial Finance
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    Exam 8: Risk and Return
  5. Question
    Liquidity Risk Is the Chance That Changes in Interest Rates
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Liquidity Risk Is the Chance That Changes in Interest Rates

Question 1

Question 1

True/False

Liquidity risk is the chance that changes in interest rates will adversely affect the value of an investment; most investments decline in value when the interest rates rise and increase in value when interest rates fall.

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