Financial Asset and Investment Quiz

The "investor" can be:

• A. an individual or a corporation.

• B. an invidiual

• C. an orporation or a government.

• D. an individual, a government, a pension fund, or a corporation

What's a road map that guides the investment process?

• A. Needs

• B. Risk premium

• C. Life's circle

• D. Policy Statement

The sources of fundamental risk are:

• A. Business risk, Financial risk, Liquidity risk, Exchange rate risk, Country risk

• B. Business risk, Human risk, Liquidity risk, Exchange rate risk, Country risk

• C. Business risk, Financial risk, Liquidity risk, Systerm risk, Country risk

• D. Business risk, Financial risk, Premium risk, Exchange rate risk, Country risk

The risks caused by internal factors, it is controllable and affects only one industry or one company, one or several securities, called :

• Market risk

• Unsystematic risk

• Systematic risk

• Purchasing power risk

The Risk is:

• A. the uncertainty that an investment will earn its expected rate of return.

• B. the unexpectation of cash flow of an investment.

• C. the considering about an investment

• D. the negative estimation of rate of return.

What kind ratio match the stock price with recent annual sales, or future sales per share?

• A. P/CF

• B.P/E

• C.P/BV

• D. P/S

Unsystematic risk is:

• The risk of many securities can be eliminated by diversifying the portfolio.

• Risk of all securities in the market.

• Risk of the set of securities in the portfolio.

• The unique risk of assets can be eliminated by diversifying the portfolio.

Ukraina-Russia crisis is an example of risk premium:

• A. Country risk

• B. Financial risk

• C. Business risk

• D. Liquidity risk

If two stocks have a correlation coefficient equal to -0.8. What does it mean?

• The returns of two stocks indicate a perfect positive correlation

• The returns of two stocks moved in the same directions

• The returns of two stocks had no linear relationship

• The returns of two stocks moved in the opposite directions

What's right definition of Real Risk Free Rate (RRFR)?

• A nominal rate no inflation and no certainty about future flows

• B. Assuming no inflation and no uncertainty about future flows.

• C. Assuming no uncertainty about future flows

• D. A basic interest rate with an uncertainty about future flows.