WorksheetsKBC online
Total questions: 5
Worksheet time: 3mins
Name
Class
Date
1.
What happens to a bond’s price when interest rates rise?
a)
Price rises
b)
Price stays the same
c)
Price falls
d)
Price doubles
2.
What is the main purpose of diversification?
a)
Increase returns without risk
b)
Eliminate all risk
c)
Reduce risk
d)
Increase market volatility
3.
What does a P/E ratio primarily compare?
a)
Sales to debt
b)
Price to earnings
c)
Assets to liabilities
d)
Market cap to revenue
4.
Why can IRR be misleading for non-conventional cash flows?
a)
It assumes decreasing discount rates
b)
It may produce multiple IRRs
c)
It ignores cash flows
d)
It always gives negative values
5.
What does duration measure for a bond?
a)
Time to maturity
b)
Coupon payment size
c)
Interest rate risk
d)
Credit rating
100 %
