投资学全英文ppt4.pptVIP

Sources of Risk (cont’d) Financial Risk is the degree of uncertainty of payment resulting from a firm’s mix of debt and equity; the larger the proportion of debt financing, the greater this risk. Types of Investments Affected Common stocks Corporate bonds Examples of Financial Risk Company can’t get additional loans for growth or to fund operations Company defaults on bonds Sources of Risk (cont’d) Purchasing Power Risk is the chance that changing price levels (inflation or deflation) will adversely affect investment returns. Types of Investments Affected Bonds (fixed income) Certificates of d