Question: QUESTION Three (a) Explain 2 factors that can affect the price of a bond. (b) Investments with a high standard deviation represent high risk and

 QUESTION Three (a) Explain 2 factors that can affect the price

QUESTION Three (a) Explain 2 factors that can affect the price of a bond. (b) Investments with a high standard deviation represent high risk and therefore should be avoided. Discuss. (c) Explain why the correlation of returns is important to consider when building an investment portfolio

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