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Margarita [4]
3 years ago
12

Uncertainty about interest-rate movements and returns is called Question 3 options: A) market potential. B) interest-rate irregu

larities. C) interest-rate risk. D) financial creativity.
Business
1 answer:
WITCHER [35]3 years ago
6 0

Answer:

The correct answer is letter "C": interest-rate risk.

Explanation:

Interest-rate risk is the threat that already owned investments will lose market value if new investments with higher interest rates come onto the market. It has a more direct effect on the value of bonds than stocks and is a major risk to all bondholders. Bond prices decrease and the interest rate increases and when bond prices increase it is because interest rate decreased.

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In the context of business, this measurement is known as a payoff. In other words, it refers to whatever is obtained as a final result from a specific outcome generated after making specific decisions. Every business decisions revolve around what the potential payoffs will be in order to decide whether or not they will be worth making and if the benefits outweigh the negative aspects.

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