INVESTMENT QUESTIONS! please help! 10 pts!?
The value of preferred stocks, government bonds, and corporate bonds:
a.decreases when overall interest rates increase and rises when
overall interest rates decrease.
b.increases when overall interest rates increase and falls when
overall interest rates decrease.
c.depends mostly on the condition of the stock market at any
particular point in time.
d.is unaffected by changes in market interest rates because
these securities always sell at their face value.
Which one of the following statements is false?
a.During inflationary times, there is a risk that the financial
return on an investment will not keep pace with the rate of
inflation.
b.Market risk associated with investments in bonds is the
result of changes in the interest rates in the economy.
c.The risk of business failure is associated with investments
in common stock, preferred stock, and corporate bonds.
d.The price of stocks, bonds, and other investments may
fluctuate because of the behavior of investors in the
marketplace.
Investment best answer:
Answer by jeff410
a. decreases when overall interest rates increase and rises when
overall interest rates decrease.
c. The risk of business failure is associated with investments
in common stock, preferred stock, and corporate bonds.
Investment
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