Which of the following terms describes a change in investors' preferences away from risky assets towards safer bonds?
A)immunization
B)flight to safety
C)laddering
D)Convexity

Question

Quizplus · Accepted Answer

Flight to safety refers to a situation where investors sell off their risky assets such as stocks and invest in safer options such as government bonds during periods of uncertainty or economic downturns. Immunization refers to a strategy used by investors to protect their portfolio against interest rate fluctuations. Laddering is a strategy of investing in bonds with different maturities to spread out the risk. Convexity measures the responsiveness of the duration of a bond to changes in interest rates.

Which of the Following Terms Describes a Change in Investors