Question 1

Over the period 2000 through 2006,the average annual return on stocks was about 20%.

Accepted Answer

A) True 
 B)False

Question 2

A buy-and-hold strategy implies that you

Accepted Answer

A) do not try to increase return by frequent trading. 
B) do not sell stocks for tax reasons. 
C) believe in exploiting economic cycles. 
D) are an unsophisticated investor who needs professional help. 
A) do not try to increase return by frequent trading. 
B) do not sell stocks for tax reasons. 
C) believe in exploiting economic cycles. 
D) are an unsophisticated investor who needs professional help.

Question 3

In constructing a portfolio of investments,you can eliminate random risk but not market risk.

Accepted Answer

A) True 
 B)False

Question 4

A security's beta (also called beta weight)is a statistic that measures

Accepted Answer

A) the responsiveness of its return over time to returns of the overall market. 
B) its degree of random risk. 
C) the range of its returns over a period of time. 
D) its risk in relation to a risk-free asset. 
A) the responsiveness of its return over time to returns of the overall market. 
B) its degree of random risk. 
C) the range of its returns over a period of time. 
D) its risk in relation to a risk-free asset.

Question 5

To reduce risk,you should look for assets with highly positively correlated related returns.

Accepted Answer

A) True 
 B)False

Question 6

Dollar cost averaging is a method of selecting securities that focuses upon application of the CAPM.

Accepted Answer

A) True 
 B)False

Over the period 2000 through 2006,the average annual return on stocks was about 20%.

A buy-and-hold strategy implies that you

In constructing a portfolio of investments,you can eliminate random risk but not market risk.

A security's beta (also called beta weight)is a statistic that measures

To reduce risk,you should look for assets with highly positively correlated related returns.

Dollar cost averaging is a method of selecting securities that focuses upon application of the CAPM.

Financial Planning: Why Its Important to You

The Time Value of Money: All Dollars Are Not Created Equal

Financial Statement and Budgets: Where Are You Now and Where Are You Going

Taxes: the Governments Share of Your Rewards

Liquidity Management: Managing Current Assets and Current Liabilities

Short-Term Credit Management: Consumer Credit

Consumer Durables: the Personal Auto

Housing: the Cost of Shelter

Financial Markets and Instruments: Learning the Investment Environment

Stocks and Bonds: Your Most Common Investments

Mutual Fundsother Pooling Arrangements: Simplifying, Maybe Improving Investment Performance

Property and Liability Insurance: Protecting Your Lifestyle Assets

Health Care and Disability Insurance: Protecting Your Earning Capacity

Life Insurance and Estate Planning: Protecting Your Dependents

Retirement Planning: Planning for Your Long-Term Needs

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Exam 10: Investment Basics: Understanding Risk and Return

Over the period 2000 through 2006,the average annual return on stocks was about 20%.

A buy-and-hold strategy implies that you

In constructing a portfolio of investments,you can eliminate random risk but not market risk.

A security's beta (also called beta weight)is a statistic that measures

To reduce risk,you should look for assets with highly positively correlated related returns.

Dollar cost averaging is a method of selecting securities that focuses upon application of the CAPM.

Financial Planning: Why Its Important to You

The Time Value of Money: All Dollars Are Not Created Equal

Financial Statement and Budgets: Where Are You Now and Where Are You Going

Taxes: the Governments Share of Your Rewards

Liquidity Management: Managing Current Assets and Current Liabilities

Short-Term Credit Management: Consumer Credit

Consumer Durables: the Personal Auto

Housing: the Cost of Shelter

Financial Markets and Instruments: Learning the Investment Environment

Stocks and Bonds: Your Most Common Investments

Mutual Fundsother Pooling Arrangements: Simplifying, Maybe Improving Investment Performance

Property and Liability Insurance: Protecting Your Lifestyle Assets

Health Care and Disability Insurance: Protecting Your Earning Capacity

Life Insurance and Estate Planning: Protecting Your Dependents

Retirement Planning: Planning for Your Long-Term Needs

Filters