CHAPTER 1 QUIZ 16 TO 20

CHAPTER 1 QUIZ 16 TO 20
16. To achieve maximum diversification benefits, an investor should invest in projects which are highly correlated. 
True    False
 
17. In general, inflation results in a loss of purchasing power to the investor. 
True    False
 
18. The only compensation anticipated from an investment is for inflation protection. 
True    False
 
19. Investment is the commitment of current funds in anticipation of receiving a larger flow of funds in the future. 
True    False
 
20. Common stock represents a direct equity claim. 
True    False

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