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.
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