Question 541

A client's ability to take risk is mainly determined by these factors:
I). investment time horizon.
II). psychological factors.
III). level of financial knowledge.
IV). net wealth.
  • Question 542

    In the mid-1990s, the United States considered requiring tomatoes to be stacked in boxes without padding. The effect of this regulation would have been to ruin vine-ripened tomatoes imported from
    Mexico. Such an act is considered an example of a
  • Question 543

    Reported earnings are more reliable indicators of a firm's fundamental value when they include
  • Question 544

    If a firm's ratio of "current assets to current liabilities" is lower than the industry average and its ratio of "long-term debt to shareholder's equity" is lower than the industry average, it would most likely indicate that the firm:
  • Question 545

    You are considering a portfolio only of long positions not involving leverage and have the following information:
    Stock | Expected Return | Variance | Correlation
    1 |15% | 100 | R1,2 = 0.6 2 |18% | 64 | R1,3 = 0.2 3 |24% | 400 | R2,3 = -1.0
    Without doing any calculations, what is the correct statement about the risk of a portfolio consisting of these three stocks?