What factors must be considered in choosing between investment alternatives?

Related MCQs

• Inferior investment alternatives are identified when:
• 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?
• Which of the statements is/are false regarding Arbitrage Pricing Theory (APT)? I. APT assumes that return on any asset can be expressed as a linear function of a set of market factors or indexes. II. The arbitrage price line indicates relation between unsystematic risk and the expected return of an asset. III. While deriving the APT model, APT assumes that the error term can be reduced to zero through appropriate diversification.
• Consider these two investment strategies: Strategy ___ is the dominant strategy because __________.
• The commission received by investment banker is known as
• If investors do not know their investment horizons for certain
• Which of the following is not one of the considerations in setting investment objectives?
• An investment requires a total return that comprises
• The ability of the investor to convert an investment into cash in a short period of time is called