Marsha invested $5,000 in a stock mutual fund. After one year, her investment was worth $4,200. Which type of risk does this best illustrate?
A) market risk
B) interest rate risk
C) credit risk
D) default risk
E) inflation risk
A) market risk
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In the context of the internal and external forces that affect business, which of the following is a difference between stable environments and dynamic environments?
Question options: The stable environment of a company is only related to the external factors affecting the company, whereas the dynamic environment of a company is only related to the internal factors affecting the company. In stable environments, fundamental changes are observed in the environment, whereas in dynamic environments, incremental changes occur. In stable environments, the rate of environmental change is slow, whereas in dynamic environments, the rate of environmental change is fast. Companies with stable environments experience changing customer preferences and attitudes, whereas companies with dynamic environments experience a fixed set of customer needs. What will be an ideal response?
M.L. Manufacturers Inc is an American clothes manufacturing firm that sells women's fashion apparel under the brand name DressChic
After extensive market research, the firm introduces a line of children's clothes under the brand name Mischief and a line of affordable work wear for women under the brand name DressSmart. In this example, M.L. Manufacturers Inc uses which of the following strategies? A) a vertical brand-line extension strategy B) a horizontal brand-line extension strategy C) a new product-market brand extension strategy D) a cobranding strategy E) a product bundling strategy