Fill in the Letter of the Word That Best Fits

question 21

Essay

Fill in the letter of the word that best fits in each sentence. Use each letter only once. $\begin{array}{ll}\_\_\_\_1.\text { nonflammable } & \text { a. not able to burn } \\\_\_\_\_2.\text { nonjudgmental } & \text { b. not breaking tissues in the body }\\\_\_\_\_3.\text { noninvasive }&\text { c. not evaluating other people }\end{array}$

---

Definitions:

Time Horizon

The length of time an investor expects to hold an investment before taking money out.

Bond Portfolio Immunization

A strategy to minimize the impact of interest rate fluctuations on the market value of a bond portfolio by matching the portfolio's duration with the investor’s investment horizon.

Price Risk

The risk that the price of a financial asset will fluctuate, affecting the profit or loss of an investment.

Reinvestment Risk

The risk that future proceeds will have to be reinvested at a lower potential interest rate.