Money Market Risk” Please respond to the following:
- From the e-Activity, assess how changes in the regulatory environment related to money market funds would cause companies to reconsider their holdings in a money market fund giving consideration to the impact of investor risk. Provide support for your answer.
- Money market investments have little, if any, risk. Agree or disagree with the statement, providing support for your argument.
“Bond Risk Management” Please respond to the following:
- Given the Federal Reserve Board’s current and forward-looking position on interest rates, predict the level of risk associated with investing in bonds and recommend a portfolio percentage for investment in bonds for a financial institution. Provide support for your recommendation.
- Assess how an increase in the interest rate would change your recommendation provided above. Indicate the basis for your rationale
