A. Income risk
B. Investment risk
C. Reinvestment risk
D. Mature risk
Related Mcqs:
- Interest rates, tax rates and market risk premium are factors which an/a_____________?
A. Industry cannot control
B. Industry cannot control
C. Firm must control
D. Firm cannot control - Sum of market risk and diversifiable risk are classified as total risk which is equivalent to_______________?
A. Sharpe’s alpha
B. Standard alpha’s
C. Alpha’s variance
D. Variance - An effect of interest rate risk and investment risk on a bond’s yield is classified as_________?
A. Reinvestment premium
B. Investment risk premium
C. Maturity risk premium
D. Defaulter’s premium - Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as____________?
A. Diversifiable risk
B. Market risk
C. Stock risk
D. Portfolio risk - Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates?
A. Fluctuations Risk
B. Interest Rate Risk
C. Real-Time Risk
D. Inflation Risk - Type of bond which pays interest payment only when it earns is classified as__________?
A. Income bond
B. Interest bond
C. Payment bond
D. Earning bond - Future value of interest if it is calculated two times a year can be a classified as__________________?
A. Semiannual discounting
B. Annual discounting
C. Annual compounding
D. Semiannual compounding - An unsystematic risk which can be eliminated but market risk is the__________?
A. Aggregate risk
B. Remaining risk
C. Effective risk
D. Ineffective risk - According to market risk premium, an amount of risk premium depends upon investor______________?
A. Risk taking
B. Risk aversion
C. Market aversion
D. Portfolio aversion - The bond which is used as insurer to protect investors against the interest rate risk, is classified as ___________?
A. zero coupon treasury notes
B. zero coupon treasury bonds
C. One payment bonds
D. zero treasurer bonds
