Q1. Investor psychology indicates investors will form portfolios via which method?

A)   Triangulating.

B)   Pyramiding.

C)   Integrating.

Q2. Which of the following statements about appropriate investment planning is TRUE?

A)   Individual investment planning could include the consultation of counsel.

B)   An appropriate investment objective for a typical 23-year-old investor is a low-risk strategy, such as capital preservation.

C)   It is not a good idea to get too specific when constructing an investment policy statement.

Q3. Behavioral finance models of asset pricing take into account economic considerations and add:

A)   personal preferences.

B)   individual selections.

C)   security specific characteristics.

Q4. Investor behavior and psychology allow classification according to risk preferences. The particular technique associated with this classification exercise is termed personality:

A)   assessing.

B)   testing.

C)   typing.

答案和详解如下：

Q1. Investor psychology indicates investors will form portfolios via which method?

A)   Triangulating.

B)   Pyramiding.

C)   Integrating.

Correct answer is B)         

Pyramiding is the concept applied to investor portfolio formation in which portfolios are created by matching layers of assets to specific goals. Each layer of assets is not particularly evaluated within an overall portfolio context.

Q2. Which of the following statements about appropriate investment planning is TRUE?

A)   Individual investment planning could include the consultation of counsel.

B)   An appropriate investment objective for a typical 23-year-old investor is a low-risk strategy, such as capital preservation.

C)   It is not a good idea to get too specific when constructing an investment policy statement.

Correct answer is A)

Consultation with tax counsel could be recommended for complicated tax situations and an estate counsel for estate issues. A 23-year-old investor should be more concerned about capital appreciation, not preservation. Investment policy statements are more useful the more specific they are.

Q3. Behavioral finance models of asset pricing take into account economic considerations and add:

A)   personal preferences.

B)   individual selections.

C)   security specific characteristics.

Correct answer is A)

In a world that accounts for behavioral factors, personal preferences are added to asset pricing models. Not only do basic economic relationships impact security prices but so do personal preferences. Investors’ likes and dislikes enter the pricing function.

Q4. Investor behavior and psychology allow classification according to risk preferences. The particular technique associated with this classification exercise is termed personality:

A)   assessing.

B)   testing.

C)   typing.

Correct answer is C)

The particular technique is termed personality typing. Personality typing is an attempt to help both the investor and manager get a better understanding of an investor’s risk tolerance characteristics. Although no classification can accurately describe all investors, personality typing does give an indication to risk tolerance.

Thank you!