Review Questions (WK4)

Review Questions (WK4) - WEEK 4 REVIEW QUESTIONS 1. Which...

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1 WEEK 4 REVIEW QUESTIONS 1. Which of the following is an example of systematic risk? (Points: 1) IBM posts lower than expected earnings. Intel announces record earnings. The national trade deficit is higher than expected . None of the above. 2. Which of the following is an example of unsystematic risk? (Points: 1) IBM posts lower than expected earnings. The Fed raises interest rates unexpectedly. The rate of inflation is higher than expected. None of the above. 3. What do you call the portion of your total return on a stock investment that is caused by an increase in the value of the stock. (Points: 1) Dividend yield. Risk-free return. Capital gain. None of the above. 4. What is one of the most important lessons from capital market history? (Points: 1) Risk does not matter. There is a positive relationship between risk and return. You are always better off investing in stock. T-bills are the highest yielding investment.
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This note was uploaded on 08/23/2011 for the course CS 300 taught by Professor Matthewhoward during the Fall '09 term at Park.

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Review Questions (WK4) - WEEK 4 REVIEW QUESTIONS 1. Which...

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