Unihelp INV2601 Test Quiz

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Been thinking about making some investments? Well, it’s always a good thing to know what you’re getting into ahead of time. If you can answer the following questions about investing money, then you’ll be ready to make the move.

Questions and Answers

1.

Which of the following statements is incorrect? An investment
- A.
  
  1. is a current commitment of money, based on fundamental research
- B.
  
  2.applies to real and/or financial assets for a given period
- C.
  
  3.- is entered into to accumulate wealth over the long term
- D.
  
  4.- is entered into to accumulate wealth over the short term
Correct Answer
D. 4.- is entered into to accumulate wealth over the short term
2.

Which of the following statements is incorrect, The required rate of return is the return that should compensate the investor for:
- A.
  
  1.Time value of money during the period of investment
- B.
  
  2.The expected rate of inflation during the period of investment
- C.
  
  3.The return linked to JIBAR
- D.
  
  4. The risk involved
Correct Answer
C. 3.The return linked to JIBAR
3.

Treasury Bill Rate 3.04% Long term government bonds 5.75% Long term corporate bonds 6.80% Large capitalisation shares 13.50% Small capitalisation shares 15.60% Annual rate of inflation 2% What is the real return on long term corporate bonds?
- A.
  
  1. 1.7%
- B.
  
  2. 6.80%
- C.
  
  3. 4.71%
- D.
  
  4. 9.37%
Correct Answer
C. 3. 4.71%
4.

In the CAPM model There are no ____ ans transaction costs involved when buying and selling assests

Correct Answer
taxes
5.

Write an essay explaining the APT model. Rember to state the assumptions.

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Current Version
Mar 21, 2022

Quiz Edited by
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Nov 01, 2011

Quiz Created by
Toxic2

Unihelp Inv2601 Test Quiz

Which of the following statements is incorrect? An investment

Which of the following statements is incorrect, The required rate of return is the return that should compensate the investor for:

Treasury Bill Rate 3.04% Long term government bonds 5.75% Long term corporate bonds 6.80% Large capitalisation shares 13.50% Small capitalisation shares 15.60% Annual rate of inflation 2% What is the real return on long term corporate bonds?

In the CAPM model There are no ____ ans transaction costs involved when buying and selling assests

Write an essay explaining the APT model. Rember to state the assumptions.