Sunday, April 3, 2011

Chapter 9

1) Risk is the likelihood of an occurrence of a wanted event.

True / False

2) The pursuit of a future return by delaying consumption and taking an anticipated, desired level of risk is called investing.

True / False

3) The decrease in asset value over a certain period is called appreciation.

True / False

4) Tax shelter is a reduction, usually mortgage interest and tax depreciation for RE investment, in taxable investment income.

True / False

5) Leverage is teh use of borrowed funds by the investor with the anticipation of decreasing investment returns.

True / False

6) Which of the following is not a risk?

a) Management

b) Inflation

c) Financial

d) None of the above.

7) Diversification is

a) Investing in a variety of assets to spread risk.

b) Investing in one stock to maximize risk.

c) Investing in one stock to minimize risk.

d) Investing in a variety of assets to maximize return.

8) An oligopoly market has following characteristic.

a) Many suppliers with full control over the market.

b) A few suppliers that have some control over the market.

c) One supplier with no control over the market.

d) None of the above.


False, True, False, True, False, d), a), b)

1 comment:

  1. Your having an issue with scripts or something with your post. However, good questions. Good Luck on the exam.