Exam 10: Investment Basics: Understanding Risk and Return
Exam 1: Financial Planning: Why Its Important to You66 Questions
Exam 2: The Time Value of Money: All Dollars Are Not Created Equal66 Questions
Exam 3: Financial Statement and Budgets: Where Are You Now and Where Are You Going115 Questions
Exam 5: Liquidity Management: Managing Current Assets and Current Liabilities97 Questions
Exam 6: Short-Term Credit Management: Consumer Credit138 Questions
Exam 7: Consumer Durables: the Personal Auto109 Questions
Exam 8: Housing: the Cost of Shelter152 Questions
Exam 9: Financial Markets and Instruments: Learning the Investment Environment117 Questions
Exam 10: Investment Basics: Understanding Risk and Return86 Questions
Exam 11: Stocks and Bonds: Your Most Common Investments186 Questions
Exam 12: Mutual Fundsother Pooling Arrangements: Simplifying, Maybe Improving Investment Performance120 Questions
Exam 13: Property and Liability Insurance: Protecting Your Lifestyle Assets154 Questions
Exam 14: Health Care and Disability Insurance: Protecting Your Earning Capacity137 Questions
Exam 15: Life Insurance and Estate Planning: Protecting Your Dependents186 Questions
Exam 16: Retirement Planning: Planning for Your Long-Term Needs119 Questions
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Assume that GM common stock has a beta of + 0.8.If you expect the market to go up 20% next year,you should also expect GM's price to go up
(Multiple Choice)
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The historical record of returns and risks shows rather clearly that as investment return increases,so does investment risk.
(True/False)
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The returns on Asset A are strongly,negatively correlated with Asset B's returns;thus,holding the two assets together will
(Multiple Choice)
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You are evaluating two investments,A and B.Data appear below: AB Expected return 10% 12% Highest possible return 20% 14% Lowest possible return 0% - 4% The riskier investment is
(Multiple Choice)
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Examining evidence of returns on common stocks and Treasury bills indicates that common stocks had
(Multiple Choice)
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One perspective on risk asserts that the longer an investment is held,the
(Multiple Choice)
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A company loses sales volume because a competitor introduces a better product.This is an example of
(Multiple Choice)
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If the risk-free rate of return increases,required returns on all other securities should increase as well.
(True/False)
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A stock with a 1.5 beta would have 50% more risk than the overall market.
(True/False)
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Over the period 1970 through 2006,the average annual return on stocks was about 11%.
(True/False)
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Holding gold and silver together is probably less risky than holding only one of them with GM stock.
(True/False)
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Which risk item below is not related to changing economic conditions?
(Multiple Choice)
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In order to adequately diversify a portfolio,you need to buy a minimum of ________ securities.
(Multiple Choice)
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If a security's beta is 1.5 and the market return is expected to increase 20%,the security's return should increase 21.5%.
(True/False)
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Evidence shows that returns on corporate stocks and Treasury bills were about equal.
(True/False)
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Inflation risk means that an investment's return might be either higher or lower than the inflation rate.
(True/False)
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Interest-rate risk refers to the potential decline in a security's price as interest rates rise.
(True/False)
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