Q1. Which of the following statements about the importance of risk and return in the investment objective is least accurate? A) Expressing investment goals in terms of risk is more appropriate than expressing goals in terms of return. B) The return objective may be stated in dollar amounts even if the risk objective is stated in percentages. C) The investor’s risk tolerance is likely to determine what level of return will be feasible.
Q2. While assessing an investor’s risk tolerance, a financial adviser is least likely to ask which of the following questions? A) “What rate of investment return do you expect?” B) “How much insurance coverage do you have?” C) “Is your home life stable?”
Q3. Which of the following statements about risk and return is FALSE? A) Return-only objectives provide a more concise and efficient way to measure performance for investment managers. B) Return objectives should be considered in conjunction with risk preferences. C) Return objectives may be stated in dollar amounts.
Q4. Which of the following statements about risk and return is FALSE? A) Specifying investment objectives only in terms of return may expose an investor to inappropriately high levels of risk. B) Risk and return may be considered on a mutually exclusive basis. C) Return objectives may be stated in absolute terms.
Q5. Which of the following factors is least likely to affect an investor’s risk tolerance? A) Number of dependent family members. B) Level of inflation in the economy. C) Level of insurance coverage.
Q6. Which of the following statements about risk is FALSE? Generally, greater: A) spending needs allows for greater risk. B) insurance coverage allows for greater risk. C) existing wealth allows for greater risk.
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发表于 2009-1-22 11:23
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