You dont want to invest in a limited partnership that isnt

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Reference no: EM13476852

1. You're seeking a diversified portfolio to cope with the various types of investment risks.You're particularly concerned that the value of your securities may be influenced by theperformances of other investors. This risk is referred to as _______ risk.

A. market C. INTEREST RATE
B. business D. liquidity

2. You learned that if you take more risk you should require a higher rate of return. Inevaluating how much extra return you get for taking risk, you compare the return formthe investment under consideration to

A. risk-free rate of return.
B. the compound rate of return.
C. the after-tax adjusted rate of return.
D. yield to maturity.

3. You're concerned with the after-tax return from your investments. The lowest taxconsequence to a dividend or distribution will be from

A. ordinary dividends. C. stock dividends.
B. short-term gain distribution. D. long-term gain distribution.

4. The performance ratio that best measures the relative value of your investment in stock is

A. return on equity. C. net profit margin.
B. price/earnings ratio. D. earnings per share

5. You don't want to invest in a limited partnership that isn't listed on an organized exchangebecause it won't be easy to sell if you need cash. The risk that best describes this problemis _______ risk.

A. event C. financial
B. purchasing power D. liquidity

 

 

Reference no: EM13476852

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