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Home  arrow Chapter 11  arrow Self-Study Quiz

Self-Study Quiz



This activity contains 25 questions.

Question 1.
That portion of a stock’s risk or variability that cannot be eliminated through investor diversification is called ____ risk.


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Question 2.
That portion of a stock’s risk or variability that can be eliminated through investor diversification is called ______ risk.


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Question 3.
Investing prior to age 54 is considered a time of ___ by investing the majority of one’s savings into ___.


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Question 4.
During the standard retirement years of 65 and older, _____ becomes more important for the investor while still allowing for some ____ in savings / investments to fight inflation.


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Question 5.
When you purchase an asset whose value depends solely on supply and demand, you are engaging in ______.


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Question 6.
According to your textbook, how should asset allocation during your "Early Years" be spread out?


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Question 7.
One should keep in mind that when it comes to minimizing your tax burden, _______ is (are) taxed lower than _______.


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Question 8.
The time dimension of risk tells us that a great deal of the risk of any investment will ____ as the length of the investment horizon ____.


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Question 9.
The ages of 55 to 64 are a time of _______ and ______, relative to your investment horizon.


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Question 10.
Efficient markets teach us that the following is not true:


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Question 11.
A speculative investment depends on the economic conditions.

   
 
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Question 12.
Stocks and income-producing real estate are both examples of ownership investments.

   
 
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Question 13.
Investing in stock is an example of a lending investment.

   
 
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Question 14.
One of the benefits of lending investments is that you know ahead of time what your return will be.

   
 
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Question 15.
When you invest in stocks and earn a return on your investment from a portion of the company’s profits, this is called interest.

   
 
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Question 16.
The interest earned on bonds is called price appreciation.

   
 
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Question 17.
When you borrow money to pay for your investments you are using leverage.

   
 
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Question 18.
Since very short-term T-Bills are virtually risk-free, the interest rate on them can be thought of as the real risk-free rate.

   
 
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Question 19.
Social risk is a significant portion of investment risk.

   
 
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Question 20.
There is risk that a corporate investment might fail. The higher return for this additional risk is called the maturity risk premium.

   
 
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Question 21.




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To create paragraphs in your essay response, type <p> at the beginning of the paragraph, and </p> at the end.

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Question 22.




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Question 23.




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To create paragraphs in your essay response, type <p> at the beginning of the paragraph, and </p> at the end.

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Question 24.




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Question 25.




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