Test Bank Investments An Introduction 12th Edition Herbert B. Mayo A+
- From Business, General Business
- NUMBER1TUTOR
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Description
TRUE/FALSE
T 1. The investor should specify the objectives of investing.
T 2. The terms "investing" and “trading” refer to purchasing and selling securities.
T 3. Investments are made in anticipation of a return.
T 4. The anticipated return and the realized return often differ.
F 5. Capital gains are the sole source of the return on an investment.
T 6. Risk is the uncertainty that the realized return may differ from the expected.
T 7. Stocks are initially sold in the “primary” market and subsequently traded in the “secondary” market.
F 8. Liquidity refers to the ease of selling a stock for a capital gain.
F 9. Efficient markets suggests that investors will outperform the market consistently.
F 10. An informed investor can expect to consistently outperform the market.
T 11. CFA is a professional designation for individuals seeking positions as portfolio managers.
T 12. Portfolio assessment s