Pat O'Malley wants to invest but worries about risk.In particular,he worries that the money he invests today will not buy as much 10 years from now.What type of risk concerns Pat?

Question

Quizplus · Accepted Answer

Pat is worried about inflation risk, which is the risk of the value of money decreasing over time due to an increase in the general price level of goods and services. This means that the purchasing power of his money may decrease over the next 10 years, resulting in a lower return on investment.

Pat O'Malley Wants to Invest but Worries About Risk