Sources of risk to the investor include
1)loss of income when funds are reinvested
2)fluctuations in security markets
3)the financing decisions of the firm
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) all of these choices

Question

Quizplus · Accepted Answer

All the listed factors can pose risks to investors: reinvestment risk (loss of income when funds are reinvested), market risk (fluctuations in security markets), and firm-specific risk (the financing decisions of the firm).

Sources of Risk to the Investor Include