Portfolio performance evaluation is an important determinant of your success in
financial planning.
What is a hedge ratio?
Political stability is the major factor concerning:
exchange-rate risksystematic risknonsystematic riskcountry risk
A major difference between new shares sold by a corporation and shares sold under a
call option is that:
there is no profit or loss under the shares sold under the call.there is no risk to the
investor with the call.there is no increase in the shares outstanding with the call.there is
no commission to the investor with the call.
Explain a long position and a short position in futures trading.
Which of the following terms describes a change in investors’ preferences away from
risky assets towards safer bonds?
immunizationflight to safetyladderingConvexity
Which of the following is generally used as a proxy for the risk-free rate of return?
savings accountcertificate of depositTreasury billTreasury bond
What forms of EMH are strongly supported by economic studies? What is some
evidence?
Index funds are considered relatively tax efficient since they rarely have short-term
gains.
Which of the following statements regarding expected return of a portfolio is true?
It can be higher than the weighted average expected return of individual assetsIt can be
lower than the weighted average return of the individual assetsIt can never be higher or
lower than the weighted average expected return of individual assetsExpected return of
a portfolio is impossible to calculate