Multiple Choice
The main reason for diversification for an investor is to:
A) take advantage of the fact that returns of assets are perfectly positively correlated.
B) take advantage of the fact that returns on assets are not perfectly correlated.
C) lower transaction costs.
D) gain from the greater returns that come from greater risk.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Which of the following is true?<br>A) Investments
Q4: Investing in a mutual fund made up
Q5: If an investment has a 20% (0.20)
Q6: Hedging is possible only when investments have:<br>A)
Q7: Unexpected inflation can benefit some people/firms and
Q9: Investment A pays $1,200 half of the
Q10: A $600 investment has the following payoff
Q11: Inflation presents risk because:<br>A) inflation is always
Q12: The fact that not everyone places all
Q13: Changes in general economic conditions usually produce:<br>A)