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Questions and Answers
Which asset classes are commonly split into sub-classes by geography, growth, and size characteristics?
Which asset classes are commonly split into sub-classes by geography, growth, and size characteristics?
- Stocks and commodities
- Bonds and stocks (correct)
- Stocks and real estate
- Bonds and commodities
What are some common sub-classes for bonds?
What are some common sub-classes for bonds?
- Collateral and maturity
- Issuer credit rating and industry
- Issuer credit rating and maturity (correct)
- Issuer industry and collateral
What are some characteristics that investors often consider when looking at bonds?
What are some characteristics that investors often consider when looking at bonds?
- Geography, growth, and size characteristics
- Issuer credit rating, maturity, and industry
- Collateral, callable, and industry of the issuer (correct)
- Issuer credit rating, maturity, and geography
What does the figure below illustrate?
What does the figure below illustrate?
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Why is it important to understand different asset classes?
Why is it important to understand different asset classes?
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Which of the following risks is associated with investing in bonds?
Which of the following risks is associated with investing in bonds?
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What happens to bond prices when interest rates go up?
What happens to bond prices when interest rates go up?
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How does inflation affect the purchasing power of fixed interest payments?
How does inflation affect the purchasing power of fixed interest payments?
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What is liquidity risk in the context of bond investing?
What is liquidity risk in the context of bond investing?
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Which of the following risks is NOT mentioned in the text?
Which of the following risks is NOT mentioned in the text?
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