The Riskiness of an Asset's Return That Results from Interest

question 57

Multiple Choice

The riskiness of an asset's return that results from interest rate changes is called

• A) interest-rate risk.
• B) coupon-rate risk.
• C) reinvestment risk.
• D) yield-to-maturity risk.

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Definitions:

Autographed Picture

A photograph signed by a celebrity or well-known person, often sought after by fans and collectors as a valuable or sentimental item.

Potentially Efficient

A state where resources could be allocated in a way that no one could be made better off without making someone else worse off.

High-Income Families

Households that earn a significantly higher income than the average, often placed within the top income brackets for a particular region, influencing their spending, saving, and investment behavior.

Low-Income Families

Households that earn significantly less income than the average for their location or society, often qualifying them for certain types of financial aid.