Unit 2 – Quiz

An efficient set of portfolios represented through graph is classified as an

Commercial mortgages, farm mortgages and home mortgages are categories of

Stock market value can deviate from its fundamental value because of strong

Which of the following is the most commonly used yield measure of a bond?

A liquid asset may

Which of the following statements regarding risk-averse investors is correct?

Securities with lower default risk and having highest credit quality are assigned the rating of

Default risk is measured by large traders, managers and investors with help of

A saver who is capital-risk averse is worried that interest rates in the economy might

Which of the following measures the reward to volatility trade-off by dividing the average portfolio excess return by the standard deviation of returns?

Difference between actual return on stock and predicted return is considered as

If a portfolio manager consistently obtains a high Sharpe measure, the managers forecasting ability is