Question

Uncertainty due to changes in the price of stocks, bonds or even mutual funds over time falls under the category of

	a.	event risk.
	b.	inflation risk.
	c.	credit risk.
	d.	liquidity risk.
	e.	market or asset price risk.

Roth IRAs and Roth 401(k) plans offer

	a.	tax deductibility for contributions up to a certain amount each year.
	b.	tax deductibility for withdrawals any time.
	c.	tax deductibility for withdrawals after age 59 1/2.
	d.	tax-deferral, tax deductible for contributions but withdrawals taxed as income.
	e.	tax exemption for withdrawals after age 59 1/2.

The precise measure of a bond's annual interest rate and rate of return if the investor holds the bond to maturity is the bond's

	a.	yield to maturity.
	b.	current yield.
	c.	coupon rate.
	d.	dividend yield.
	e.	rate of return.

Answer 1