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Keith Does Not Believe That Bad Things Will Happen to Him.He

question 41

Multiple Choice

Keith does not believe that bad things will happen to him.He thinks it is wrong for others to drink and drive but is okay for him because he is special and will not wreck.This is called ___________.


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.

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