sample test

sample test - 1. The material wealth of a society is equal...

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1. The material wealth of a society is equal to the sum of _________. A) all financial assets B) all real assets C) all financial and real assets D) all physical assets E) none of the above 2. Which of the following is not a characteristic of a money market instrument? A) liquidity B) marketability C) long maturity D) liquidity premium E) C and D 3. Which of the following statements is (are) true ? I) Risk-averse investors reject investments that are fair games. II) Risk-neutral investors judge risky investments only by the expected returns. III) Risk-averse investors judge investments only by their riskiness. IV) Risk-loving investors will not engage in fair games. A) I only B) II only C) I and II only D) II and III only E) II, III, and IV only 4. A portfolio has an expected rate of return of 0.15 and a standard deviation of 0.15. The risk-free rate is 6 percent. An investor has the following utility function: U = E(r) - (A/2)s 2 . Which value of A makes this investor indifferent between the risky portfolio and the risk-free asset? A) 5 B) 6 C) 7 D) 8 E) none of the above 5. According to the mean-variance criterion, which one of the following investments dominates all others? A) E(r) = 0.15; Variance = 0.20 B) E(r) = 0.10; Variance = 0.20 C) E(r) = 0.10; Variance = 0.25 1
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D) E(r) = 0.15; Variance = 0.25 E) none of these dominates the other alternatives.
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sample test - 1. The material wealth of a society is equal...

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