CHAPTER 1 QUIZ 6 TO 10

CHAPTER 1  QUIZ  6 TO 10
6. An investor can totally eliminate time-consuming investment management activities by participating in a mutual fund or limited partnership. 
True    False
 
7. The riskiness of an investment is measured by the dispersion of possible outcomes. 
True    False
 
 
8. Unlike the risk-free rate, the level of the risk premium varies by investment. 
True    False
 
9. The Ibbotson study showed that high-risk investments generate high returns. 
True    False
 
10. Diversification is the process of determining the risk premium. 
True    False

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