Question

Dave is a thirty-year-old high school music teacher who has investments in a 5 -year GiC, a high interest savings account, and a money market segregated fund. Given this scenario Dave's major investment risk is: Select one: a. Credit risk b. Inflation Risk C. Market Risk d. Interest Rate Risk

Answer 1

Dave's major investment risk is interest rate risk.

Step-by-step explanation:

Dave's major investment risk is interest rate risk. Interest rate risk refers to the danger of changes in interest rates affecting the value of an investment. As a high school music teacher with investments, Dave may face uncertainties in the return on his investments due to fluctuations in interest rates.

Answer 2

Dave's major investment risk is Interest Rate Risk.

Step-by-step explanation:

In this scenario, Dave's major investment risk is Interest Rate Risk. Interest rate risk refers to the possibility that changes in interest rates may negatively impact the value of an investment. Given that Dave has investments in a 5-year GiC, a high interest savings account, and a money market segregated fund, all of which are sensitive to interest rate fluctuations, he is exposed to this risk.