1.

Keeping other things constant, the higher the risk the lower will be the return

True

False

2.

A _______ risk is a decrease in the value of stocks, bonds, or other investments

		Market
		Inflation
		Business Failure
		Interest Rate

3.

Which of the following statements is not true?

		An investor seeking global diversification with less than $200,000 to invest should invest in global mutual funds.
		Because of international accounting rules, evaluating foreign investments is more difficult than evaluating investments in Canada.
		Changes in currency exchange rate may affect the return on your investment.
		An investor in Canada cannot purchase shares in a foreign company.

4.

Vlada wants to travel after she retires as well as pay off the balance of the loan she has on the home that she owns. Which step in the financial planning process does this situation demonstrate?

		Developing her financial goals
		Evaluating her alternatives
		Implementing her financial plan
		Identifying alternative courses of action