Unit 19 Flashcards
Investment Risks
1
Q
What interest rate risk is also referred to as
A
Market risk for bonds
1
Q
Reinvestment Risk
A
Risk that one will re-invest money at a lower rate because of market fluctuations over time
2
Q
Sovereign risk
A
Capture the risk of a country defaulting on its commercial debt obligations
3
Q
What regulatory risk stems from
A
Change in regulations
4
Q
What legislative risk stems from
A
Change in the law
5
Q
A
