Exercise

Name the type of investment risk.

1. _____ The risk that a drop in interest rates will cause a bond to be redeemed early.

2. _____ The risk that the payment from a fixed-income investment will not be able to buy as much in the future as it can today.

3. _____ The risk that an issuer will go bankrupt, causing an investor to miss out on expected payments from his investment.

4. _____ The risk that changes related to a foreign government will affect the value of securities issued in that country

5. _____ The risk that poor management at an issuing company will adversely affect investments related to that company

6. _____ The risk that changes in laws will reduce the value of securities from an industry affected b