The Greater the Proportion of Stocks to Bonds in Your

question 54

Multiple Choice

The greater the proportion of stocks to bonds in your portfolio, the greater the ________ risk.

• A) interest rate
• B) reinvestment
• C) inflation
• D) market

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Definitions:

Negotiable

Capable of being discussed and modified in a transaction or agreement.

Bearer Instrument

A financial document not assigned to a specific holder, thus whoever holds the document has the right to cash or transfer it.

Order Instrument

A financial instrument that is payable to a specific person or their order, thus requiring endorsement for transfer.

Bearer Instrument

A negotiable financial instrument, such as a check or bond, that entitles the holder in possession to the rights of the instrument, with no need to prove ownership.