Which of the following is not a true statement?
A) When choosing an investment, it is not necessary to consider the risk factor.
B) During inflationary times, there is a risk that the financial return on an investment will not keep pace with 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 is associated with investments in common stock, preferred stock, and corporate bonds.
E) The price of stocks, bonds, and other investments may fluctuate because of the behavior of investors in the marketplace.
Correct Answer:
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