ESSENTIALS OF INVESTMENTS
CHAPTERS 1-3 QUESTIONS WITH
CORRECT ANSWERS 2024-2025
InvestmentP-PcorrectPanswer-TradingPpresentPresourcesPforPfuturePpayoff.
RealPAssetsP-PcorrectPanswer-UsedPtoPproducePgoodsPandPservices.
Ex.PLand,Pbuildings,PequipmentPandPknowledge.
FinancialPAssetsP-PcorrectPanswer-ClaimsPonPrealPassets.
Ex.PBankPloans,Pstocks,PbondsPandPoptions.
RepresentP60%PofPtotalPassetsPofPU.S.Phouseholds.
ConsumptionPSmoothingP-PcorrectPanswer-SavingPforPthePrainyPdays:PretirementPaccount,Pinsurance
AllocationPofPrisksP-PcorrectPanswer-
DiversificationPoverPaPlargerPownership.PRepackagingPriskPtoPmatchPinvestor'sPriskPappetite.
AgencyPProblemP-PcorrectPanswer-SeparationPofPownershipPandPmanagement
MarketPEfficiencyP-PcorrectPanswer-
DoesPnotPrequirePthatPthePmarketPpricePbePequalPtoPtruePvaluePatPeveryPpointPinPtime.PAllPitPrequiresPisPthat
PerrorsPinPthePmarketPpricePbePunbiased.
ActivePManagementP-PcorrectPanswer-InefficientPmarkets
-FindingPundervaluedPsecurities
-MarketPtiming
PassivePManagementP-PcorrectPanswer-EfficientPMarkets
-NoPattemptPtoPfindPundervaluedPsecurities
CHAPTERS 1-3 QUESTIONS WITH
CORRECT ANSWERS 2024-2025
InvestmentP-PcorrectPanswer-TradingPpresentPresourcesPforPfuturePpayoff.
RealPAssetsP-PcorrectPanswer-UsedPtoPproducePgoodsPandPservices.
Ex.PLand,Pbuildings,PequipmentPandPknowledge.
FinancialPAssetsP-PcorrectPanswer-ClaimsPonPrealPassets.
Ex.PBankPloans,Pstocks,PbondsPandPoptions.
RepresentP60%PofPtotalPassetsPofPU.S.Phouseholds.
ConsumptionPSmoothingP-PcorrectPanswer-SavingPforPthePrainyPdays:PretirementPaccount,Pinsurance
AllocationPofPrisksP-PcorrectPanswer-
DiversificationPoverPaPlargerPownership.PRepackagingPriskPtoPmatchPinvestor'sPriskPappetite.
AgencyPProblemP-PcorrectPanswer-SeparationPofPownershipPandPmanagement
MarketPEfficiencyP-PcorrectPanswer-
DoesPnotPrequirePthatPthePmarketPpricePbePequalPtoPtruePvaluePatPeveryPpointPinPtime.PAllPitPrequiresPisPthat
PerrorsPinPthePmarketPpricePbePunbiased.
ActivePManagementP-PcorrectPanswer-InefficientPmarkets
-FindingPundervaluedPsecurities
-MarketPtiming
PassivePManagementP-PcorrectPanswer-EfficientPMarkets
-NoPattemptPtoPfindPundervaluedPsecurities