Author: Anonymous

Which of the following statements regarding investment risk are correct?   1. Rational investors will form portfolios and eliminate systematic risk. 2. Beta is a measure of systematic, non-diversifiable risk. 3. Rational investors will form portfolios and eliminate unsystematic risk. 4. Systematic risk is the relevant risk for a well-diversified portfolio. 5. Beta captures all the risk inherent in an individual security.

Tom is interested in purchasing a personal liability umbrella policy (PLUP). He has asked you to educate him on this type of policy. Which of the following is true?

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1.4 What is it called when we break down a problem into smaller parts? (1)

Which of the following terms is defined as: the possibility of loss, but no possibility of gain?

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If the risk/return performance of a stock lies below the Security Market Line, the stock is said to have a:

SECTION B: PRACTICAL                                                                                                             QUESTION 2:    Download the document by clicking on the blue button, make the necessary changes, and upload when finished.     

SECTION B: PRACTICAL QUESTION 1:   Download the document by clicking on the blue button, make the necessary changes, and upload when finished.     

QUESTION 4: Fill in the answer in the blank space below.