Which of the following types of risk affect owners of fixed income securities more than owners of equity securities

Question

Quizplus · Accepted Answer

Purchasing power risk (also known as inflation risk) affects owners of fixed income securities more than owners of equity securities because fixed income securities provide a fixed return, which may not keep up with inflation. This can result in a decrease in the real value of the investment over time. Business risk, financial risk, and market risk can affect both fixed income and equity securities equally.

Which of the Following Types of Risk Affect Owners of Fixed