Drag each tile to the correct box. Match each investment example to the type of risk involved with it.

credit risk

inflationary risk

market risk

reinvestment risk

George purchased a US Treasury bond that matures in five years. He plans to purchase a newly issued Treasury bond and hopes it will be just as valuable.

arrowRight

Claretta purchased a Treasury bond that pays 1% interest when the price of goods and services are rising by 2%.

arrowRight

Corbin purchased a corporate bond with a poor rating and a risk of default.

arrowRight

Beth bought a company's stock in hopes of a quick profit, but the stock price has been very unpredictable.

arrowRight

Question

Business

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4 October, 05:02

Drag each tile to the correct box. Match each investment example to the type of risk involved with it.

credit risk

inflationary risk

market risk

reinvestment risk

George purchased a US Treasury bond that matures in five years. He plans to purchase a newly issued Treasury bond and hopes it will be just as valuable.

arrowRight

Claretta purchased a Treasury bond that pays 1% interest when the price of goods and services are rising by 2%.

arrowRight

Corbin purchased a corporate bond with a poor rating and a risk of default.

arrowRight

Beth bought a company's stock in hopes of a quick profit, but the stock price has been very unpredictable.

arrowRight

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Answers (1)

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Gregory Kidd · Answer 1

George purchased a US Treasury bond that matures in five years. He plans to purchase a newly issued Treasury bond and hopes it will be just as valuable. - credit risk

Claretta purchased a Treasury bond that pays 1% interest when the price of goods and services are rising by 2%. - Inflationary risk

Corbin purchased a corporate bond with a poor rating and a risk of default. - market risk

Beth bought a company's stock in hopes of a quick profit, but the stock price has been very unpredictable. - reinvestment risk