1. Municipal bonds that are backed by the income from specific projects are known as: (Points : 0.1)

A.Income bonds. B.Revenue bonds. C.General obligation bonds. D.Debenture bonds.

2.Tom Taylor wants to accumulate wealth, but he has told his financial planner that he is risk-averse. What should the financial planner advise Tom to do regarding his current asset investment choices, considering his risk tolerance and his goal of accumulating wealth? (Points : 0.1)

A.Invest in products which bring the highest return regardless of risk. B.Invest in products producing high income because fixed income products are generally safe. C.Put Toms assets in 100% cash equivalents because he is risk-averse. D.Determine Toms true risk tolerance.

3. As a measure for risk, the Capital Market Line (CML) uses the: (Points : 0.1)

A.Risk-free rate of return. B.Beta of the market. C.Standard deviation of the market. D.Portfolio weighted beta.