Podcast
Questions and Answers
What type of risk affects individual companies due to specific events or circumstances?
What type of risk affects individual companies due to specific events or circumstances?
- Market risk
- Default risk
- Unique risk (correct)
- Interest rate risk
How can diversification help mitigate unique risk?
How can diversification help mitigate unique risk?
- By spreading investments across different assets (correct)
- By focusing solely on fixed-income securities
- By hedging against currency fluctuations
- By avoiding corporate bonds
What is the impact of high inflation on companies?
What is the impact of high inflation on companies?
- Lower consumer spending
- Decreased profit margins (correct)
- Increased investor returns
- Higher stock prices
Which factor can slow down economic growth when it rises?
Which factor can slow down economic growth when it rises?
What does interest rate risk refer to?
What does interest rate risk refer to?
What should be considered when comparing mutual funds?
What should be considered when comparing mutual funds?
What type of risk affects individual companies or assets and can't be easily diversified away?
What type of risk affects individual companies or assets and can't be easily diversified away?
If an automobile manufacturer's workers go on strike, what type of risk is this considered?
If an automobile manufacturer's workers go on strike, what type of risk is this considered?
Which scenario is an example of non-systematic risk?
Which scenario is an example of non-systematic risk?
What could cause the stock price of a technology company to increase according to the text?
What could cause the stock price of a technology company to increase according to the text?
Which type of risk affects the entire market or a broad segment of it according to the text?
Which type of risk affects the entire market or a broad segment of it according to the text?
What could cause a retail company's stock price to drop based on the text?
What could cause a retail company's stock price to drop based on the text?
