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Zorluk: OrtaSystematic and Market Risks

Match each macroeconomic scenario described below with the primary systematic risk factor that directly impacts the portfolio's valuation or real performance.

  • A fixed-income portfolio containing 30-year Treasury bonds experiences a decline in market value after the Federal Reserve implements several benchmark interest rate hikes.Interest Rate Risk
  • A retiree holding a fixed annuity distribution over a fifteen-year period discovers that the monthly payouts purchase noticeably fewer goods and services due to rising Consumer Price Index (CPI) numbers.Purchasing Power (Inflation) Risk
  • A broadly diversified equity index mutual fund suffers a 12% loss in portfolio value during an overall economic downturn, despite strong earnings reports from the constituent companies.Market Risk
  • An investor whose callable corporate bonds are redeemed during a period of falling interest rates must deploy the returned principal into new issues offering lower yield returns.Reinvestment Risk

Cevap

1. 30-year Treasury bond price drops from rate hikes -> Interest Rate Risk
2. Fixed annuity payouts buying fewer goods due to CPI increases -> Purchasing Power (Inflation) Risk
3. Broad equity index fund declining during market downturn despite good company earnings -> Market Risk
4. Reinvesting redeemed principal at lower prevailing yields -> Reinvestment Risk
Each scenario accurately exemplifies a specific subtype of systematic risk: rising benchmark rates lower long-term bond values (interest rate risk), persistent inflation reduces the real value of fixed cash flows (purchasing power risk), broad market declines depress index values despite solid earnings (market risk), and reinvesting capital in lower-yield environments reduces overall returns (reinvestment risk).

Adım Adım Çözüm

1
Analyze Scenario 1 (30-year Treasury price decline from Fed rate hikes)
Identified as Interest Rate Risk.
Bond market prices move inversely to benchmark interest rate changes.
2
Analyze Scenario 2 (Fixed payments buying fewer goods due to CPI increases)
Identified as Purchasing Power (Inflation) Risk.
Inflation erodes the real purchasing power of fixed streams of income over time.
3
Analyze Scenario 3 (Broad market index drop during economic downturn)
Identified as Market Risk.
Systematic market declines affect broad market indexes regardless of individual company fundamentals.
4
Analyze Scenario 4 (Redeemed principal reinvested at lower interest rates)
Identified as Reinvestment Risk.
The risk that future income/principal payments will have to be reinvested at lower rates than previously earned.

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Systematic and Market Risks
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Systematic and Market Risks

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