MOCK - 2

Financial Planning involves

• Studying financial management
• Financing the client's investments
• Managing the risks of default
• None of the above

Greater returns come only from assuring higher risks, and a higher risk portfolio guarantees higher returns

• True
• False

The risk tolerance of an investors is independent of

• His age
• The stock market movements
• His income
• His job security

A sector fund is a

• Low risk fund
• High risk fund
• Regulatory limits on borrowing
• Low-to-moderate risk fund

Investment in gold is a hedge against inflation but investment in a precious metal fund falls in the high-risk category

• True
• False

By their very nature, growth funds are considered as high-risk funds

• True
• False

Short Term bond funds are comparatively

• Low risk funds
• High risk funds
• Moderate risk funds
• All of the above depending on the market

The risk level of commodity funds is

• High risk category
• Cannot be specified
• Determined by the commodity price movements
• Low risk category

As compared to a fund with fluctuating total returns, a fund with stable positive earings

• Gives higher returns
• Gives lower returns
• Is less risky
• Is more risky

"Risk" is equated with

• Volatility of earnings
• The number of investors in a fund
• Level of earnings
• The number of schemes of a fund family