LOS o: Evaluate how economic and competitive factors affect investment markets, sectors, and specific securities.
Q1. In the early expansion phase of the business cycle stock prices are:
A) rising at a faster rate than they are in the later stages of an expansion.
B) stagnant as they are in the later stages of an expansion.
C) rising at a slower rate than they are in the later stages of an expansion.
Q2. Which of the following statements regarding TIPS is most accurate? TIPS have:
A) inflation risk but no credit risk.
B) credit risk but no inflation risk.
C) no credit risk and no inflation risk.
Q3. If inflation rises, the yields for TIPS will:
A) fall and their price will rise.
B) rise and their price will fall.
C) rise and their price will rise. |