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Multiple Choice QuestionWhat risk is the result of changes in the interest rates of the economy?Multiple choice question.inflation riskcommon riskcapital gainsinterest rate risk

Question

Multiple Choice QuestionWhat risk is the result of changes in the interest rates of the economy?Multiple choice question.inflation riskcommon riskcapital gainsinterest rate risk

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Solution

The risk that is the result of changes in the interest rates of the economy is the interest rate risk.

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Question 2The inflation risk, which inflation indexation aims to mitigate (check all that apply)1 pointIs the risk that the cash flow from an investment won’t be worth as much in the future because of changes in purchasing power due to inflation.Is the risk that the nominal rate of return of an investment will exceed the rate of inflation.Is not the risk that there will be inflation, it is the risk that inflation will significantly fluctuate over time.Is associated with any investment that involves cash flows over time.

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