Fill in the blanks:
_____ investment funds are riskier than _____ funds, but are generally less risky than _____ funds. ____
A) Balanced; equity; specialty
B) Mortgage; money market; bond
C) Bond; balanced; mortgage
D) Specialty; index; balanced
it can be said that the mortgage investment funds are generally riskier than the money market funds because money market funds are short term funds which are mostly investing into treasury bills and commercial papers so the liquidity risk will be lower but the bond funds will be having higher risk than the mortgage bonds because they are invested into long term bonds. So mortgage funds will be having lower risk than the bond funds but higher risk than money market funds.
all the other statement are false because balanced investment funds are lesser risky than the equity funds and speciality funds.
Correct answer will be option (B) mortgage, money market, Bond.
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