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20 Interest income is NOT an investment return a. True b. False 21.The real rate

ID: 2796754 • Letter: 2

Question

20 Interest income is NOT an investment return a. True b. False 21.The real rate of return does not take inflation into consideration a. True b. False 22 Principleemphasizes that the earlier you start investing, the better (time value of money) a 3 b. 4 c.6 d.2 e5 a. House effect b. Disposition effect c. Crowd effect d. Herd Behavior e.None of the above 23. is following the where everyone else is investing 2 4. The shorter the time hotizon for investing, the more risk you can take a. True b. False 25. The riskiest investments area. Treasury bills a. Treasury bills b. Stocks c.Mutual Funds d.Bonds

Explanation / Answer

20. False; Interest Income is a return from Investment may be it is Short Term or Long Term made by the company.

21.False; The Real rate of return takes inflation and other fators into account. The nominal rate of return is the one which doesnot takes inflation into account

22. 2; The Principle 2 Emphasizes to invest earlier to receive better time value of money

23.Herd Behavior; Herd Behavior helps investor to see the performance of individual stock in a group without centralized administration.

24.False; The Longer the time horizon for investing the more risk one can take because they will have long term to recover the investment.

25. Stocks; Treasury Bills, Mutual Funds, Bonds are less riskier when compared with Stocks.