Investments Analysis And Management 3rd Canadian Edition By W. Sean Cleary-Test Bank

Question Bank for Study of Investments and Management Third Canadian Version by W. Sean Cleary

ISBN-10:053845217X , ISBN-13:978-0538452175

CHAPTER 1
Understanding Investments
MULTIPLE CHOICE
1. A Chartered Financial Analyst designation can be described as:
a. OSC-approved and granted designation.
b. proof of a successful investment track record.
c. professional recognition granted for meeting established standards of conduct and competence.
d. professional acknowledgment granted by the brokerage industry.
Answer: c
Topic: Investments as a Profession
Challenge Level: Easy
Type: Factual
2. Gold, gems, art and tangible property can be classified as:
a. tangible assets.
b. indirect assets.
c. personal assets.
d. financial assets.
Answer: a
Topic: The Characteristics of Investments
Type: Factual
3. An alternative term for stockbrokers is:
a. experts.
b. registered representatives.
c. security analysts.
d. portfolio managers.
Answer: b
Topic: Investments as a Profession
Type: Factual
Challenge Level: Moderate
4. A collection of investments:
a. comprises the asset holdings of an investor.
b. may include tangible assets.
c. is not reassessed after initial purchase.
d. is insignificant in overall financial planning.
Answer: a
Topic: Structuring the Decision Process: Portfolio Management
Challenge Level: Moderate
Type: Factual
5. Fundamental to the evaluation of an investment is the balance between:
a. expected return and actual return.
b. low risk and high risk.
c. actual return and high risk.
d. expected return and risk.
Answer: d
Topic: The Expected Return-Risk Tradeoff
Challenge Level: Moderate
Type: Factual
6. The majority of investors demonstrate risk-averse behavior meaning:
a. they will not accept more risk unless compensated by higher expected returns.
b. they will always invest in options offering the lowest possible risk.

Question Bank
1
Chapter 1
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Cleary/Jones

Investments: Analysis and Management, Third Canadian Version

c. they actively aim to maximize their risks.
d. they invest solely in money market securities to steer clear of the risk associated with the stock market.
Answer: a
Topic: The Basis for Investment Decisions: Risk
Challenge Level: Moderate
Type: Factual

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