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Basic Question 1 of 12
The higher the credit risk of a bond, ______.
II. the greater the volatility of its returns
III. the higher the liquidity risk
I. the higher the required yield
II. the greater the volatility of its returns
III. the higher the liquidity risk
User Contributed Comments 2
| User | Comment |
|---|---|
| warnggg | Why not C? |
| ahmed999 | @WARNGGG because the liquidity risk is entirely different and not related by anyway to credit risk. |
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Tamara Schultz
Learning Outcome Statements
describe macroeconomic, market, and issuer-specific factors that influence the level and volatility of yield spreads
CFA® 2026 Level I Curriculum, Volume 4, Module 14.