If investors do not know their investment horizons for certain

Related MCQs

• Which of the following statements is/are not correct with respect to the ‘Constant Mix Strategies’ of asset allocation? I. Investors adopting these strategies tend to maintain an exposure to stocks that are in constant proportion of their wealth. II. The risk-tolerance level of the investors varies proportionately with the level of theirwealth. III. Reversals in stock markets oppose constant mix strategies over the buy and hold IV. strategies.
• If you were confident that the price of stock X would drop dramatically within two Months ,which of the following investment transactions would yield the highest return on your investment?
• Information about return on an investment is as follows: (a) Risk free rate 10% (b) Market Return is 15% (c) Beta is 1.2 What would be the return from this investment?
• One of the assumptions of the CAPM is that investors exhibit myopic behavior. What does this mean?
• Because most investors are risk averse
• Conventional theories presume that investors ____________ and behavioral finance presumes that they ____________.
• Under ________ EMH investors cannot earn abnormal/superior profits on securities on a consistent basis.
• Wealthy investors may prefer the favorable tax treatment of investments such as
• Investors who completely ignore an asset’s variance and only consider the asset’s expected return are called:
• Which of the following is not one of the considerations in setting investment objectives?