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

What is a widely used measure of growth and is used to evaluate anything that can fluctuate in value, such as assets and investments?

CAGR is used when looking at investments over any period of time, but usually for a period of at least

Beta is a measure of

Sum of market risk and diversifiable risk are classified as total risk which is equivalent to

A model which regresses return of stock against return of market is classified as

Future beta is needed to calculate in most situations is classified as

What is close to 1 indicates that the security will perform roughly in line with the market?

Diversification Strategy is used to gain market share in

Strategies such as diversification, penetration and market development are part of

Which of the following is not a typical portfolio constraint?

Which of the following are boundaries that investors place on their choice of investment assets?

Proper diversification among common stocks can

In the context of the Capital Asset Pricing Model the relevant measure of risk is