Preliminary Examination in Investment and Portfolio Management

_______ is defined as the current commitment of resources funds in the expectation

of harvesting some positive rate of return in the future. Expectation of return is an

essential element of investment.

• Investment

• Business

• Return

• Risk

It is a sacrifice made now to obtain a return in the future.

• Investment

• Business

• Risk

• Return

All Investments are characterized by the expectation of a return. In fact, investments are made with the primary objective of deriving a _________.

• Investment

• Business

• Return

• Risk

_______ is inherent in any investment. This may relate to loss of capital, delay in repayment of capital, non-payment of interest, or variability of return.

• Risk

• Return

• Investment

• Business

The _________ of investment implies the certainty of return, without any loss of money or time. It is another common feature which an investor desires for his investment.

• safety

• risk

• return

• investment

An investment which is easily marketable without loss of value and time is said to liquid

• Liquidity

• Risk

• Return

• Safety

An ______ is an individuals or institutions who commits money to investment products with the expectation of financial return.

• investor

• investment

• liquidity

• return

People invest to earn a return from savings due to their deferred consumption. They want a rate of return that compensates them for the time, the expected rate of inflation, and the uncertainty of the return. True or False?

• False
• True

__________ are pieces of paper (or electronic) evidencing claim on some issuer. The most important financial assets are equity shares, corporate bonds, government securities, deposit with banks and like

• Derivatives
• Financial assets

• Real Estate
• Commodities

_______ are represented by tangible assets like

residential house, commercial property, agricultural farm, precious stones and like.

• Cash equivalents
• Real estate
• Intangible assets
• Stocks and bonds