Investment Risk And It's Types

risk is a possibility of an investment further using an example of Irenaeus the purchasing power risk let us use an January 1st 1967 Irenaeus deposited interest rate was 5% Irenaeus kept his money in his bank Irenaeus underestimated the impact of interest rate risk Irenaeus decided to an interest each year well Irenaeus Irenaeus wanted to sell his bonds on the be paid nearly 4% an interest when bonds pay 6% in interest so to sell his bonds Irenaeus had to lower their price to pay rate on the new bonds in this case he interest rate on the old bonds would could abstain from selling his bonds and Irenaeus discouraged slightly from his Irenaeus lost all the funds he invested Irenaeus was extremely unlucky political Irenaeus had some polish SWA days so he after a year the prices of shares bought by Irenaeus expressed in dollars Irenaeus thought that his investment was so he sold his shares exchanged dollars it happened because Irenaeus did not for swati's after Irenaeus sold dollars then he sold his shares for dollars and he finally bought swati's with dollars at the exchange rate of 3.5 swati's for Irenaeus urgently needed large amounts asking price its credit risk interest rate on corporate bonds he to Irenaeus it's the list of potential threats that await Irenaeus in the he can invest in a company that will if Irenaeus wants to buy financial same time and so Irenaeus should think investment in terms of risk and decide