Exercise

Name the type of investment risk.

1. 1. _____ The risk that a drop in interest rates will cause a bond to be redeemed early.
2. 2. _____ The risk that the payment from a fixed-income investment will not be able to buy as much in the future as it can today.
3. 3. _____ The risk that an issuer will go bankrupt, causing an investor to miss out on expected payments from his investment.
4. 4. _____ The risk that changes related to a foreign government will affect the value of securities issued in that country
5. 5. _____ The risk that poor management at an issuing company will adversely affect investments related to that company
6. 6. _____ The risk that changes in laws will reduce the value of securities from an industry affected b