International Finance And Treasury - Study Mode

[#206] In Capital Market Line every investment is
Correct Answer

(A) infinitely divisible

Explanation

Solution: In Capital Market Line every investment is infinitely divisible. The capital market line (CML) represents portfolios that optimally combine risk and return. Capital asset pricing model (CAPM), depicts the trade-off between risk and return for efficient portfolios.

[#207] Dollar-cost averaging allows investors to stay away from trouble of buying high and selling
Correct Answer

(C) low

Explanation

Solution: Dollar-cost averaging allows investors to stay away from trouble of buying high and selling low.

[#208] Who concern with relations between security returns
Correct Answer

(A) Markowitz diversification

Explanation

Solution: Markowitz diversification concern with relations between security returns. Markowitz diversification is a strategy that seeks to combine in a portfolio assets with returns that are less than perfectly positively correlated, in an effort to lower portfolio risk (variance) without sacrificing return. Related: Naive diversification.

[#209] Superior portfolio is not basically a collection of individually
Correct Answer

(B) good investments

Explanation

Solution: Superior portfolio is not basically a collection of individually good investments. A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds.

[#210] Investments would grade uppermost with regard to protection is
Correct Answer

(A) government bonds

Explanation

Solution: Investments would grade uppermost with regard to protection is government bonds. A government bond is a debt security issued by a government to support government spending. Government bonds can pay periodic interest payments called coupon payments.