FIN 301 ONLINE ASSIGNMENTS WITH
CORRECT ANSWERS
According to the efficient market hypothesis, using technical
analysis to forecast future stock prices is - CORRECT
ANSWER-Useless
Believers of behavioral finance principles do believe that -
CORRECT ANSWER-Markets are not always efficient
According to the Principles of Finance, risk aversion means: -
CORRECT ANSWER-Investors takes small risks, but do not
avoid risk at all cost
True or False: According to the principles of finance, investors
prefer more risk to less risk. - CORRECT ANSWER-False
When Professor X started investing with a mutual fund, he had
to pay a front-end load of 5% of the money he was investing.
What is this front-end load of 5% an example of? - CORRECT
ANSWER-Transaction Costs
According to frank Russell's model of investor emotion through
market cycles, investor emotion in 2007 before the financial
crisis would be best described as: - CORRECT ANSWER-
Euphoria
True or False: In order to achieve the highest level of return for
the amount of risk we can take on, it is very important to not
diversify our investments into different asset classes, and to
only invest in small-cap bio-tech stocks. - CORRECT
ANSWER-False
CORRECT ANSWERS
According to the efficient market hypothesis, using technical
analysis to forecast future stock prices is - CORRECT
ANSWER-Useless
Believers of behavioral finance principles do believe that -
CORRECT ANSWER-Markets are not always efficient
According to the Principles of Finance, risk aversion means: -
CORRECT ANSWER-Investors takes small risks, but do not
avoid risk at all cost
True or False: According to the principles of finance, investors
prefer more risk to less risk. - CORRECT ANSWER-False
When Professor X started investing with a mutual fund, he had
to pay a front-end load of 5% of the money he was investing.
What is this front-end load of 5% an example of? - CORRECT
ANSWER-Transaction Costs
According to frank Russell's model of investor emotion through
market cycles, investor emotion in 2007 before the financial
crisis would be best described as: - CORRECT ANSWER-
Euphoria
True or False: In order to achieve the highest level of return for
the amount of risk we can take on, it is very important to not
diversify our investments into different asset classes, and to
only invest in small-cap bio-tech stocks. - CORRECT
ANSWER-False
