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Reading 23: Capital Market Expectations- LOS o~ Q1-3

 

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.

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回复:(youzizhang)[2009] Session 6 - Reading 23:...

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