IFC Final Exam Questions and Answers

Types of risk

1. inflation rate risk

2. business (unsystematic/unique)

3. political risk

4. liquidity risk

5. interest rate risk

6. foreign exchange risk

7. default risk







what is the difference between nominal and real rate of inflation?

nominal: return not adjusted for inflation. generally higher than real



real: adjusted for inflation



real return= nominal - inflation







3 asset class

1. fixed income securities

2. equities

3. money...
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