Question 81
An investor insists that his portfolio maintain its value in terms of purchasing power and is quite concerned about a loss of value. This investor’s return objective is best described as:
A) total return. B) capital appreciation. C) current income. D) capital preservation. Question 82
A stock is expected to earn a return of 10%, which is 6% greater than the risk-free rate. If the expected return on the market is 12% and the beta of the stock is 0.75, the stock most likely:
A) is overvalued. B) is properly valued. C) will plot above the security market line. D) will plot below the security market line. Question 83
The Markowitz investment model assumes that all investors:
A) exhibit the same degree of risk aversion. B) can borrow or lend any amount at the risk-free rate. C) measure risk as the variance of expected return. D) have the same one-period time horizon. Question 84
James Harman, CFA, is preparing an investment policy statement for Lucy Williams, a 65-year old widow who has several grandchildren. Williams inherited a large amount of money and has adequate health and property insurance. Williams explains that she wants at least 5% of her assets to be invested in equities in the defense industry. Harman's assessment of Williams' risk tolerance is least likely to consider her:
A) age. B) inheritance money. C) preference for defense stocks. D) insurance coverage. Question 85
Which of the following statements about bond indexes and international asset indexes is least accurate?
A) Global equity indexes were created to alleviate sample selection and weighting problems with local indexes. B) A bond index is more difficult to create than an equity index because the universe of bonds is narrower than the universe of stocks. C) Low correlations among monthly returns on country indexes support international diversification. D) Correlations among investment-grade bond indexes are higher than correlations among high-yield bond indexes.
[此贴子已经被作者于2008-11-8 14:02:03编辑过] | 
发表于 2008-5-26 12:16
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