As you allocate more of your investment portfolio to bonds,you reduce your exposure to ________ risk,but increase your exposure to ________.
A)interest rate; business risk
B)business; default
C)market; interest rate risk
D)default; liquidity risk

Question

Quizplus · Accepted Answer

As you allocate more of your investment portfolio to bonds, you reduce your exposure to market risk (the risk that the overall market will decline) but increase your exposure to interest rate risk (the risk that interest rates will rise and decrease the value of your bond investments).

As You Allocate More of Your Investment Portfolio to Bonds,you