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1. There are numerous types of risks that an investor faces. This type of risk CANNOT be diversified away. A. Interest rate risk B. Unsystematic

1. There are numerous types of risks that an investor faces. This type of risk CANNOT be diversified away.

  • A. Interest rate risk
  • B. Unsystematic risk
  • C. Systematic risk
  • D. Currency risk

2.Will is reviewing his investments and has noted that many investors have sold growth stocks and, are instead, focusing on value stocks. As such, Will decides to disregard his asset allocation and exclusively invest in value stocks. Based on Will's behavior, this type of investor bias is called

  • A. Overconfidence
  • B. Herding
  • C. Myopic Loss Aversion
  • D. Hindsight

3.The 4% withdraw rule is one of the most commonly referenced retirement studies. Critiques of the 4% Rule from Bill Bengen include all of the following, EXCEPT

  • A. The study utilized historic index returns, which do not include expenses.
  • B. The study utilized historic average returns; returns going forward may significantly underperform historic averages.
  • C. The study assumed a 30-year retirement period, which may not take into account Americans retiring earlier and living longer.
  • D. The study a CD laddering strategy, resulting in less funds for heirs

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