Generally, It Is Easiest to Assign

question 7

Multiple Choice

Generally, it is easiest to assign:

• A) credit.
• B) personal services.
• C) money.
• D) an agreement calling for the personal satisfaction of the assignor.

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Definitions:

Reinvestment Rate Risk

The risk that income from an investment will be reinvested at a lower rate than the original investment.

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.