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A bond investor is always exposed to credit risk. Credit risks can be classified into three types. They are:
Default Risk
Credit Spread Risk
Downgrade Risk.
Lee Sun's has sales of $6,000, total assets of $5,000, and a profit margin of 10 percent. The firm has a total debt ratio of 40 percent. What is the return on equity?
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Q. Causes of Risks 1) Wrong decision of what to invest in. 2) Wrong timing of investments. 3) Nature of instruments invested such as shares or bonds, chit funds, benefit
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