1.Does the market typically reward investor for assuming the idiosyncratic or unique risk?
1 point
No
2.It is impossible to beat the market because whatever the stock price is today reflects the information that is already out there. Which theory reflects this statement?
1 point
Expected utility theory
Life-cycle theory
Efficient market hypothesis
Prospect theory
3.We need to form our investment strategies based on our goals and the time it will take to reach them,
1 point
True
False
4.What is the importance of asset allocation?
1 point
To reach our future goals
To meet ongoing needs
To produce income
All of the above
5.When we sell a share after the price appreciation and make some money, it is called ___________
1 point
Short sell
Dividends
Capital gain
Continuous income
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