7. On average, which type of mutual fund is expected to have the highest return? A. Money market funds B. Bond funds C. Equity funds D. Hybrid bonds (stocks and bonds) 8. A sell limit order at $44 would not be carried out at A. $43 B. $44 C. $45 D. $46 9. Underlying all investment decisions is the trade-off between and A. Expected return; total risk B. Expected return; systematic risk C. Realized return; total risk D. Realized return; nonsystematic risk 10. An investor just retired and requires a real rate of return of 8% to cover her living expenses in the future. If the expected inflation rate is 3%, what should be set as the required return on her investment portfolio? A. 3% B. 5% C. 8% D. 11% 11. Investing in index fund is an example of A. Active investment strategy B. Passive investment strategy C. Technical analysis D. Fundamental analysis 12. The pioneering stage of an industry's life cycle is characterized as A. High risk and low return B. High risk and high return C. Low risk and high return D. Low risk and low return 13. Which one of the following is an example of passive investment strategies? A. Buy and hold B. Market timing C. Sector rotation D. Security selection