How are fixed-income funds subject to equity risk?
Negative correlation between the 2 asset classes? If FI funds were to outperform we would expect equities to crap out. If equities rip, FI funds will crap out. Not sure if this is correct, just my logic
high yield bonds have a correlation with equity IIRC.
What exam are you looking at…posting question number isnt helpful
june2009 Wrote: ------------------------------------------------------- > What exam are you looking at…posting question > number isnt helpful The Schwser Online Mock, they only have one mock exam.
Fixed income funds have market risk. When the market falls the spread between the bonds they invest in and the treasuries they short rise, causing a loss
Sorry…i didnt even know schweser offered a mock for $49…