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1. The collection of assets is called a(n) Select one: a. diversity b. investmen

ID: 2633791 • Letter: 1

Question

1. The collection of assets is called a(n)

Select one:

a. diversity

b. investment

c. portfolio

d. grouping

2. The ___________________ of an event occurring is the percentage chance of a given outcome.

Select one:

a. probability

b. reliability

c. standard deviation

d. dispersion

3. The beta of the market

Select one:

a. is greater than 1.

b. is 1.

c. is less than 1.

d. cannot be determined.

4. Risk that affects all firms is called

Select one:

a. diversifiable risk.

b. nondiversifiable risk.

c. management risk.

d. total risk.

5. If you expect the market to increase which of the following portfolios should you purchase?

Select one:

a. a portfolio with a beta of 1.9

b. a portfolio with a beta of -0.5

c. a portfolio with a beta of 0.0

d. a portfolio with a beta of 1.0

Explanation / Answer

1.C

2. A

3. B

4. B

5. A