This quiz works best with JavaScript enabled.
Select an option to see the correct answer instantly.
Correct Answer: B) Higher the standard deviation.
Correct Answer: A) The government raises interest rates unexpectedly.
Correct Answer: A) Compensation that investors want from the risks they face.
Correct Answer: D) Risk Tolerance.
Correct Answer: A) Zero; one.
Correct Answer: B) National decrease in consumer spending on entertainment.
Correct Answer: A) Company risk.
Correct Answer: D) Return.
Correct Answer: D) Diversify holdings to spread risk outside the U.S. economy.
Correct Answer: C) Beta.
Correct Answer: A) Thirty U.S. stocks.
Correct Answer: C) A deposit account.
Correct Answer: C) 6.85%.
Correct Answer: C) Market Capitilization.
Correct Answer: D) All the above.
Correct Answer: A) Inflationary Expectation.
Correct Answer: D) Change in Investors' risk aversion.
Correct Answer: B) Safety of the original amount.
Correct Answer: B) Covariance.
Correct Answer: C) Return.
Correct Answer: C) Index Fund.
Correct Answer: B) Stock B:SD = 6%; E(R) = 10%.
Correct Answer: D) 17.5%.
Correct Answer: A) Lean toward high-risk investments with high-return potential.
Correct Answer: C) Data is insufficient to determine which is riskier.