Investors Who Attempt to Reduce Their Risk of Fluctuating Market

question 65

Multiple Choice

Investors who attempt to reduce their risk of fluctuating market interest rates by holding only short-term instruments

• A)will succeed as long as the short-term instruments are Treasury bills.
• B)will fail because short-term instruments are affected more by fluctuations in market interest rates than are long-term instruments.
• C)will expose themselves to reinvestment risk.
• D)will incur large capital gains.

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Definitions:

Porifera

A phylum of aquatic invertebrate animals that comprises the sponges, characterized by a porous body and a simple construction.

Molecular Data

Information or details extracted from the study of molecules to understand their characteristics, structure, and interactions.

Phylogenies

The study and construction of family trees that show the evolutionary relationships among various biological species or other entities.

Traditional Animal

A term that might refer to species commonly recognized or domesticated by human cultures throughout history, but without a precise scientific meaning.