Stretching out the maturity of marketable securities can rarely result in a loss.

Name: Stretching out the maturity of marketable securities can rarely result in a loss.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Stretching out the maturity of marketable securities increases the risk of loss due to interest rate changes, inflation, and credit risk. Longer-term securities offer higher yields, but also come with higher risks, and there is a greater possibility of losing principal if held until maturity.

Stretching Out the Maturity of Marketable Securities Can Rarely Result