1. True/False. Interest rate risk is greater for stocks than for bonds. 2. True/

Question

1.     True/False. Interest rate risk is greater for stocks than for bonds.

2.     True/False. Interest rate risk is greater for long-term bonds than for short-term bonds.

3.     True/False The risk free rate of return is often measured by the return on US Treasury Bills.

4.     True/False Bonds rated AA by S&P and Aa by Moody's would be investment quality.

5.     The returns you would expect from your investments could be

a. risk.

b. capital gains.

c. current income.

d. a and c above.

e. b and c above.

6.     Risk and return are ____ related.

A inversely

b. directly

c. slightly

d. oppositely

e. none of the above

7.     Bond prices and current interest rates are ____ related.

a. inversely

b. directly

c. slightly

d. positively

e. none of the above

8.     Stocks whose price movements who tend to follow the business cycle are called

a. cyclical stocks

b. defensive stocks

c. speculative stocks

d. income stocks

e. tech stocks

9.     A potential high return on an investment will signal a [high | low] risk exposure.

10.     Stock dividends represent [taxable | nontaxable] income.

Explanation / Answer

1..False

2.True

3.True

4.False

5.b. capital gains.

6.b. directly

7.a. inversely

8.a. cyclical stocks

9.High

10.Taxable

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.