Principles of investment Actual Exam Questions With Correct Detailed Answers.
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Module
INV.
Institution
INV.
The higher the risk - correct answer The higher the return
The lower the risk - correct answer The lower the Return
Total Dollar Return - correct answer Th...
The higher the risk - correct answer The higher the return
The lower the risk - correct answer The lower the Return
Total Dollar Return - correct answer The return on an investment measured in
dollars that accounts for all the cash flows and capital gains or losses
Total Percent Return - correct answer the return on an investment measured
as a percentage that accounts for all cash flows and capital gains or losses
Dollar Return - correct answer dividend income + Capital gain (or loss)
Standard deviation - correct answer square root of variance
Blume Formula - correct answer 4/9 x geometric average x 5/9 x arithmetic
average
geometric average - correct answer the average compound return earned per
year over a multiyear period
arithmetic average return - correct answer the return earned in an average
year over a multiyear period
time value of money - correct answer is the idea that money available at the
present time is worth more than the same amount in the future due to its potential earning capacity.
Investing Policy Statement (IPS) - correct answer objectives and constraints
liquidity - correct answer how easily an asset can be turned into cash
Market timing - correct answer buying and selling in anticipation of the overall
direction of a market
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