MBA KMBNFM01 Investment Analysis and Portfolio Management - Important Questions & Answers
Important Question & Answers: AKTU MBA 3rd Year KMBNFM01 Paper Define Purchasing Power Risk? Purchasing Power Risk is also called as Inflation Risk. It is defined as the chance that the cash flows from an investment would lose their value in future because of a decline in its purchasing power due to inflation. Define Currency Risk? It refers to the potential risk of loss from fluctuating foreign exchange rates that an investor may face when he has invested in foreign currency or made foreign-currency-traded investments. Define Bond? A bond is a type of debt security that represents a loan made from an investor to an issuer, such as a corporation, government, or other organizations. It is a type of fixed income security through which a Company acknowledges its obligation to repay the sum over a specified period of time, at a specified rate of interest. It is one of the methods of raising the loan capital of the Company. Bonds are traded in ...