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Which of the following is likely to generate the least risk to the purchaser? a 30-year...

Which of the following is likely to generate the least risk to the purchaser?

a 30-year mortgage

a long-term bond

a share in Microsoft

a short-term bond
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Homework Answers

Answer #1

Long Term Securities have the highest risk in the market because they are exposed to the market Interest rate Risk. As the rate in the Market keeps on changing. Therefore, the risk becomes higher.

The correct answer is Short Term Bond as it will have the least risk. Option $ is correct. a short term bond

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