Portfolio risk encompasses
1. a firm's financing decisions
2. interest rate risk
3. loss of purchasing power
A)1 and 2
B)1 and 3
C)2 and 3
D)all of the above

Question

Quizplus · Accepted Answer

Portfolio risk can include a variety of factors such as a firm's financing decisions, which can affect the risk profile of investments held; interest rate risk, which impacts the value of fixed-income investments as rates change; and loss of purchasing power, which refers to the risk that inflation will erode the real value of assets over time.

Portfolio Risk Encompasses 1. a Firm's Financing Decisions