WPC 150 Finance Quiz Questions with All Correct Answers
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Course
WPC 150 Finance
Institution
WPC 150 Finance
WPC 150 Finance Quiz Questions with All Correct Answers
Which of the following assets is tangible? - Answer- ExxonMobil's corporate headquarters building
In general, firms that adopt socially responsible corporate practices do so at the expense of the firms' shareholders. - Answer- False
Di...
WPC 150 Finance Quiz Questions
with All Correct Answers
Which of the following assets is tangible? - Answer- ExxonMobil's corporate
headquarters building
In general, firms that adopt socially responsible corporate practices do so at the
expense of the firms' shareholders. - Answer- False
Diversification reduces the risk of a portfolio because the prices of different securities do
not move exactly together. - Answer- True
From the study of behavioral finance, we have learned that limited attention bias can
explain why minority groups face frictions in accessing financial resources. - Answer-
False
One can find the change in wealth from an investment by subtracting the present value
of its required investment from the present value of its future cash flows. - Answer- True
Bubbles and crashes are examples of "anomalies" that challenge the notion that
markets are efficient - Answer- True
In financial planning, which of the following statements about asset allocation is false. -
Answer- Asset allocation should not be affected by an individual's attitude towards risk.
Investors who are risk-averse do not invest in risky securities like common stocks. -
Answer- False
Which of the following portfolios has the least risk? - Answer- A portfolio of Treasury
bills
The concept of compound interest is best described as: - Answer- interest earned on
interest.
Which portfolio should earn the highest average annual return? - Answer- Portfolio of
U.S. common stocks
Which of the following statements about Bitcoin is false: - Answer- There is general
agreement that Bitcoin will become the currency of the future.
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