Investments

Question 1

Margin Call Loan

1 - Maintenance Margin

Answer 1

Margin Call Loan

1 - Maintenance Margin

Question 2

Systematic Risks

Answer 2

P - purchasing power risk
R - reinvestment risk
I -  Interest Rate Risk
M - Market Risk
E - Exchange Rate Risk

Question 3

Unsystematic Risks

Answer 3

A - Accounting Risk
B - Business Risk
C - Country Risk
D - Default Risk
E - Executive Risk
F - Financial Risk
G - Government Risk

Question 4

What measure of risk does the Capital Markets Line use?

Answer 4

Standard deviation

Question 5

The optimal portfolio occurs at the point of tangency between:

a) The utility curve and the efficient frontier.
b) The indifference curve and the portfolio deviation. c) The efficient frontier and the indifference curve.
d) The optimal curve and the utility functio

Answer 5

c) The efficient frontier and the indifference curve.