- Meltigle Choior Ouestions (3 point each 15 point total . The mserial weath of
ID: 1163509 • Letter: #
Question
- Meltigle Choior Ouestions (3 point each 15 point total . The mserial weath of a society is a function of A all fnancial asses B all real assets C. all financial and real assets D. all p?ysical assets E all commodities Financial assets A. directly contribute to the country's productive capacity B. indirectly contribute to the country's productive capacity C. contribute to the country's productive capacity both directly and indirectly D do not contribuse so the country's productive capacity either directly or indirect E. are of no value so anyone 3. Which of the folowing statements regarding risk-averse investors is trae? A. They only care about the rate of return B. They accept investments that are fair games C. Tie only accept risky investments that offer risk premiums over the risk-free D. They are willing so accept lower returns and high risk E. They only care abour the rase of returm and accept investments that are fair gane t advisor attempts to determine an investor's risk solerance, which f . When an investment would they be least likely to assess? The investors prior investing experience The investor's degree of financial security The imestior's tendency to make risky or conservative choices e level of return the investor prefers The invessor's feelings about loss 5. The variable (A) in the utility function represents the investor's return requirement B. investor's aversion to risik certainty-equivalent rate of the portfolio minimum required utility of the portfolio. the security's varianceExplanation / Answer
1)
Real assets are key determinant of material wealth of society. Rise in real wealth of society depends on all real assets.
Hence, right answer is (B)
2)
Right answer is (B)
Financial assets helps business to meet the various needs. Thus, it does not support production capacity directly and it indirectly supports it.
3)
Right answer is (C)
Returns should be greater than risk free rate of return. There would not be any incentive to make risky investment if return is less or equal to risk free rate of return.
4)
Right answer is (e)
Advisory is less likely to assess the level of return investor prefers. Other factor crucial in assessments.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.