Flexible Budgets Are Used as a Tool for

question 81

Multiple Choice

Flexible budgets are used as a tool for

• A)Control.
• B)Evaluation.
• C)Planning.
• D)All of these ans choices are correct.

---

Definitions:

Price Risk

The possibility that the value of a financial instrument or asset will fluctuate due to changes in market prices, affecting investors' returns.

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.