Investment Risk and Portfolio Management Paper 2

1

Which of the following classes of securities are listed in order from lowest risk/opportunity for return to highest risk/opportunity for return?






2

From the viewpoint of the investor, which of the following securities provides the least risk?






3

An investor is currently holding income bonds, debentures, subordinated debentures, and first-mortgage bonds. Which of these securities traditionally is considered to have the least risk?






4

A feasible portfolio that offers the highest expected return for a given risk or the least risk for a given expected return is a(n)






5

The risk of a single stock is






6

If two projects are completely and positively linearly dependent (or positively related), the measure of correlation between them is






7

The returns on two stocks can be correlated in values except those that are






8

Which of the following specifically measures the volatility of returns together with their correlation with the returns of other securities?






9

A market analyst has estimated the equity beta of Modern Homes, Inc., to be 1.4. This beta implies that the company’s






10

A measure that describes the risk of an investment project relative to other investments in general is the






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