BF120 Quiz 1 Review

The possibility of losing an investment because of the rise in an interest rate is known as what? 

• Interest Rate Risk

• Market Risk

• Investment Risk

• Data Risk

The total risk associated with a portfolio investment package is often called what? 

• Data Risk

• Portfolio Risk

• Investment Risk

• Market Risk

The individual who buys and sells investment securities for their own accounts is called what? 

• Risk Analyst

• Investors

• Dealers

• Financial Analyst

An increase in the value of one currency in relation to other currencies is commonly referred to as: 

• Risk

• DeValuation

• Upward Trend

• Revaluation

A portfolio whose return is not maximized given the amount of risk it faces is often referred to as: 

• Inefficient Portfolio

• underperforming
• Downward Trend

• suboptimal

(a)   associated with the rise and fall of a stock’s price in relation to the market.

The (a)   market occurs when prices of stocks or other securities fall. 

The total of income plus capital gains earned on an investment is known as (a)  

Equipment, inventory or other goods that are pledged to the bank in the case the company can't make a loan payment.

(a)  

Which of the following is a primary goal of risk management in investing?

• Maximizing returns at any cost.

• Eliminating all investment risks.

• Minimizing potential financial losses.

• Investing in only guaranteed securities.