CHAPTER 1 QUIZ 68 TO 72
68. Which of the following investments would theoretically always carry the highest risk premium?
A. U.S. treasury bill
B. Common stock
C. Preferred stock
D. Corporate bond
E. Any one of the above
69. ____, because of increasing replacement value and scarcity, perform(s) best in periods of high inflation.
A. Real assets
B. Common stock
C. Preferred stock
D. Financial assets
E. More than one of the above
70. The two components that make up the risk-free rate are:
A. real rate of return and capital gains.
B. risk-free assets and capital gains.
C. real rate of return and the inflation factor.
D. real assets and the inflation factor.
E. capital gains and the inflation factor.
71. Which of the following is not one of the considerations in setting investment objectives?
A. Risk versus safety of principal
B. Maximize wealth versus minimize expenses
C. Current income versus capital appreciation
D. Short-term versus long-term orientation
E. Taxes
72. One of the reasons a short-term trader has difficulty in beating the market is because of:
A. risk.
B. lack of information.
C. large institutional investors.
D. commissions.
USA 
India