Short investment horizon

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Short investment horizon: Suppose you plan to go to graduate school in two years and you will need money for tuition. Which type of risk would you be most concerned with and why? Long investment horizon: Suppose that a young couple is saving for their children’s education or imagine a retiree who lives on income from her bond portfolio. Which type of risk would they be more concerned about – interest rate risk or reinvestment risk? Why?

Reference no: EM131305845

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