8. The efficient frontier of risky assets may be defined as the portion of the investment opportunity set which A. Lies above the minimum variance portfolio. B. Represents the highest return to risk ratio. C. Includes portfolios with minimum risk. D. Includes portfolios with the highest returns. E. To avoid investing in high risk type of investment. 9. The return on a portfolio is A. The sum of the returns of the individual securities. B. The value weighted sum of the return of the individual securities. C. The value weighted sum of the variances of the returns. D. The value weighted sum of the co-variances of the returns. E. The return derived from different asset class-based, to sum up all investment return from each investment. 10. Which of the following are the advantages of short-term investments? I. High liquidity and low risk. II. Available from local financial institutions. III. Can be readily converted into cash with minimal inconvenience IV. Similar to market interest rates. A. I, II, III B. I, III, IV C. II, III, IV D. I, II, III, IV E. Non of the above 11. are issued by companies whose earnings are closely linked to the general state of the economy or the general level of business activity. A. Speculative stocks. B. Defensive stocks. C. Common stocks. D. Growth stocks. E. Cyclical stocks. 12 Which of the following statements regarding fixed income securities is/are false? I. The price of a bond increases when its yield to maturity decreases. II. As the duration of a bond increases, its sensitivity to a given change in interest rates increases. III. A normal yield curve is downward sloping. IV. The higher the liquidity risk, the greater the required yield to maturity of a bond. A. 1 B. I, II C. III D. III, IV E. I, III 8. The efficient frontier of risky assets may be defined as the portion of the investment opportunity set which A. Lies above the minimum variance portfolio. B. Represents the highest return to risk ratio. C. Includes portfolios with minimum risk. D. Includes portfolios with the highest returns. E. To avoid investing in high risk type of investment. 9. The return on a portfolio is A. The sum of the returns of the individual securities. B. The value weighted sum of the return of the individual securities. C. The value weighted sum of the variances of the returns. D. The value weighted sum of the co-variances of the returns. E. The return derived from different asset class-based, to sum up all investment return from each investment. 10. Which of the following are the advantages of short-term investments? I. High liquidity and low risk. II. Available from local financial institutions. III. Can be readily converted into cash with minimal inconvenience IV. Similar to market interest rates. A. I, II, III B. I, III, IV C. II, III, IV D. I, II, III, IV E. Non of the above 11. are issued by companies whose earnings are closely linked to the general state of the economy or the general level of business activity. A. Speculative stocks. B. Defensive stocks. C. Common stocks. D. Growth stocks. E. Cyclical stocks. 12 Which of the following statements regarding fixed income securities is/are false? I. The price of a bond increases when its yield to maturity decreases. II. As the duration of a bond increases, its sensitivity to a given change in interest rates increases. III. A normal yield curve is downward sloping. IV. The higher the liquidity risk, the greater the required yield to maturity of a bond. A. 1 B. I, II C. III D. III, IV E