Lester McCann wants to invest but is worried about risk.In particular,he is worried that the money he invests today will not buy as much ten years from now.What type of risk concerns Lester?
A)inflation
B)interest rate risk
C)business failure
D)market
E)global investment

Question

Quizplus · Accepted Answer

Lester is concerned about inflation risk, which is the risk that the purchasing power of his money will be reduced due to inflation. Inflation can cause prices to rise and the value of money to decrease. By investing, Lester can try to offset the effects of inflation by earning returns higher than the rate of inflation.

Lester McCann Wants to Invest but Is Worried About Risk