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Which One of the Following Is a True Statement

Question 52

Multiple Choice

Which one of the following is a true statement?


A) When choosing an investment, it is not necessary to consider the risk factor.
B) During inflationary times, there is no risk that the financial return on an investment will differ from the rate of inflation.
C) The interest rate risk associated with investments in bonds is the result of changes in the interest rates in the economy.
D) The risk of business failure deals with changes in the value of stocks and bonds due to changes in interest rates in the market.
E) The prices of stocks, bonds, and other investments never fluctuate in the market.

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