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Drag each tile to the correct box
determine the type of risk each investment is likely to incur
business risk
call risk
liquidity risk
taxability risk
lee purchased municipal bonds
issued by a government entity.
valerie bought bonds that include
a feature to pay the bonds back
earlier than the maturity date.
brian used most of his savings to
purchase the stock of a big
company
aj invested all of his savings in
a rental home.

Respuesta :

Parrain

The kind of risk that the given investments might incur are:

  • Lee purchased municipal bonds issued by a government entity - Liquidity risk.
  • Valerie bought bonds that include a feature to pay the bonds back earlier than the maturity date - Call risk.
  • Brian used most of his savings to purchase the stock of a big company - Business risk.
  • Aj invested all of his savings in a rental home - Taxability risk.

Which risks do these investments face?

Municipal bonds are usually illiquid which means that buying them comes with liquidity risk. Buying stock comes with business risk because the stock might lose value if the company performs poorly.

Call risk occurs when the issuer of a bond can pay back the bond before it matures.

Find out more on liquidity risk at https://brainly.com/question/921670.

#SPJ1

Answer:

C. B. A. D.

expiation:

in that order

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