Which One of the Following Is a True Statement

question 53

Multiple Choice

Which one of the following is a true statement?

• A)When choosing an investment, it is not necessary to consider the risk factor.
• B)During inflationary times, there is no risk that the financial return on an investment will differ from the rate of inflation.
• C)The interest rate risk associated with investments in bonds is the result of changes in the interest rates in the economy.
• D)The risk of business failure deals with changes in the value of stocks and bonds due to changes in interest rates in the market.
• E)The prices of stocks, bonds, and other investments never fluctuate in the market.