FIN 461 Exam #3:
Already Passed
A
VI
Questions and
TU
Answers Grade
IS
M
A+ 2025!!
O
A
N
JP
, Investors should use a portfolio approach to: - ANSWER Reduce risk
Which of the following is the best reason for an investor to be concerned with the
composition of a portfolio?
A. Risk reduction
B. Downside risk protection
A
C. Avoidance of investment disasters - ANSWER Risk reduction
VI
With respect to the formation of portfolios, which of the following statements is most
accurate?
TU
A. Portfolios affect risk less than returns
B. Portfolios affect risk more than returns
C. Portfolios affect risk and returns equally - ANSWER Portfolios affect risk more
IS
than returns
Which of the following institutional investors will most likely have the longest time
horizon?
M
A. Defined benefit plan
O
B. University endowment
C. Life insurance company - ANSWER University endowment
A
A defined benefit plan with a large number of retirees is likely have a high need for: -
N
ANSWER Income
Which of the following institutional investors is most likely to manage investments in
JP
mutual funds?
A. Insurance Companies
B. Investment Companies
C. University Endowments - ANSWER Investment Companies
With respect to the portfolio management process, the asset allocation is determined in
the: - ANSWER Execution step
Already Passed
A
VI
Questions and
TU
Answers Grade
IS
M
A+ 2025!!
O
A
N
JP
, Investors should use a portfolio approach to: - ANSWER Reduce risk
Which of the following is the best reason for an investor to be concerned with the
composition of a portfolio?
A. Risk reduction
B. Downside risk protection
A
C. Avoidance of investment disasters - ANSWER Risk reduction
VI
With respect to the formation of portfolios, which of the following statements is most
accurate?
TU
A. Portfolios affect risk less than returns
B. Portfolios affect risk more than returns
C. Portfolios affect risk and returns equally - ANSWER Portfolios affect risk more
IS
than returns
Which of the following institutional investors will most likely have the longest time
horizon?
M
A. Defined benefit plan
O
B. University endowment
C. Life insurance company - ANSWER University endowment
A
A defined benefit plan with a large number of retirees is likely have a high need for: -
N
ANSWER Income
Which of the following institutional investors is most likely to manage investments in
JP
mutual funds?
A. Insurance Companies
B. Investment Companies
C. University Endowments - ANSWER Investment Companies
With respect to the portfolio management process, the asset allocation is determined in
the: - ANSWER Execution step
