An increase in international stocks and a decrease in corporate bonds in a portfolio will increase which of the following types of risk?

Credit risk pertains to the possibility that a borrower will default on their obligations. While corporate bonds are affected by credit risk, the focus of the question is on the shift from corporate bonds to international stocks. This transition does not inherently increase credit risk, as the underlying creditworthiness of the investments does not change merely by altering the asset allocation between these two types of securities.

Interest rate risk is associated with the potential for changes in interest rates to affect the value of fixed-income securities. While corporate bonds are sensitive to interest rate fluctuations, the move to international stocks does not directly increase interest rate risk, as this risk is more relevant to bond investments than to equities.

Reinvestment risk arises when cash flows from an investment cannot be reinvested at the same rate of return as the original investment. This risk is not inherently linked to the choice between international stocks and corporate bonds. Instead, it primarily concerns fixed-income securities and does not increase due to a shift in investment type.