Ch.11 · Comparing Fund Performance · easy
Which credit rating indicates the HIGHEST credit risk in a debt mutual fund portfolio?
0% of students got this wrong
EXPLANATION
'D' rating indicates default — the issuer has already failed to meet payment obligations. In the credit rating hierarchy, D is the lowest, meaning the issuer is in default. AAA is the highest (lowest risk); anything below BBB- is considered 'non-investment grade' or 'junk'.
Practising Chapter 11 one question at a time?
Try the full chapter — 60 questions, tracked score, weak area breakdown.