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Answer in 200 words. Explain the various sources of risk in an investment portfolio. In your opinion,...

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Finance

Answer in 200 words.

Explain the various sources of risk in an investmentportfolio. In your opinion, what can an investor do to manageportfolio risk efficiently?

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3.7 Ratings (459 Votes)
The various sources of risk affecting an investment portfolio is interest rate risk bond prices move inversely to interest rate changes The higher the interest rates bond prices fall and lower interest rates leads to higher bond prices Stocks are not much affected by changes in interest rates as the bonds are inflation risk inflation reduces the    See Answer
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Answer in 200 words.Explain the various sources of risk in an investmentportfolio. In your opinion, what can an investor do to manageportfolio risk efficiently?

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