International Finance And Treasury - Study Mode

[#91] In order to settle on compound growth rate of an investment over period, an investor determine the
Correct Answer

(A) geometric mean

Explanation

Solution: In order to settle on compound growth rate of an investment over period, an investor determine the geometric mean. The geometric mean is the average of a set of products, the calculation of which is commonly used to determine the performance results of an investment or portfolio. It is technically defined as "the nth root product of n numbers."

[#92] Total portfolio hazard is
Correct Answer

(A) equal to systematic risk plus diversifiable risk

Explanation

Solution: Total portfolio hazard is equal to systematic risk plus diversifiable risk. Portfolio risk is a chance that the combination of assets or units, within the investments that you own, fail to meet financial objectives. Each investment within a portfolio carries its own risk, with higher potential return typically meaning higher risk.

[#93] Non-systematic risk is furthermore identified as
Correct Answer

(D) company specific risk

Explanation

Solution: Non-systematic risk is furthermore identified as company specific risk. A non-systematic risk is the one wherein the investor can prevaricate by selling short or just signing a futures.

[#94] Investors should be agreeing to invest in riskier investments merely
Correct Answer

(C) if expected return is adequate for risk level

Explanation

Solution: Investors should be agreeing to invest in riskier investments merely if expected return is adequate for risk level. High risk investments include equity investments, while moderate and low risk instruments include fixed income investment options like fixed deposits. One of the most important factors to consider while investing is your age. When it comes to investing, being young is an advantage.

[#95] Hold two securities as an alternative of will not decrease hazard occupied by an investor if two securities are
Correct Answer

(A) perfectively positive correlated

Explanation

Solution: Hold two securities as an alternative of will not decrease hazard occupied by an investor if two securities are perfectively positive correlated.