DIRECTIONS: Here is the Week03Non-Graded Quiz Answer Sheet that you should submit to your P3- Homework Assignment Folder.

Please submit your Week03Non-Graded Quiz in MS Word fromat with the following file name: LastNameFirstInitial_Week03NonGradedQuizAnswerSheet.docx. For example, if you name is John Smith, the file name of your Answer Sheet should be SmithJ_Week03NonGradedQuizAnswerSheet.docx.

If you have any questions or comments, please do not hesitate to contact me.

NAME: _____________________________________

Non-Graded Quiz Number	Question
1	Risk is A:Variability in expected return B:The potential for loss C:The possibility returns may be positive, zero, or negative D:Uncertainty of a future outcome E:All of the above are acceptable definitions
2	Strategies to help manage investment risk include: A:Asset allocation B:Professional management C:Diversification D:All of the above are potential strategies to reduce investment risk E:None of the above will have any impact on investment risk
3	Changes in financial risk affects a companys A:Stock price B:Availability of credit lines C:Cost to borrow D:All of the above are affect by changes in financial risk E:B and C are affected, but A is not
4	If interest rates increase, prices of previously issued bonds will A:Decrease B:Increase C:Bond prices are not affected by changes in interest rates
5	The standard deviation: A:Is always positive or zero B:Is the square-root of the covariance C:Is a measure of the total risk of the asset D:All of the above are true E:A and C are true, but B is false

6	The degree to which two variables move in a systematic or predictable way is the A:Beta B:Covariance C:Variance D:Skewness E:R-Square
7	Two securities that are perfectly positively correlated A:Are considered to be independent securities B:Have a correlation of 0 C:Provide no diversification benefits D:Have a negative covariance E:Are a benefit to the portfolio
8	Investing overseas induces all of the following potential risks EXCEPT: A:Political risk B:Currency risk C:Agency risk D:Foreign taxation risk E:Liquidity risk
9	U.S. investors in U.S. Treasury securities need to be most concerned about which of the following risk factors: A:Liquidity risk B:Event risk C:Currency risk D:Inflation risk E:Default risk
10	The best guess of the anticipated return for some future period is the A:Actual return B:Expected return C:Realized return D:Unexpected return E:None of the above
11	A probability distribution A:Consists of all possible outcomes and the probability of each outcome occurring B:May have an infinite number of possible outcomes C:Must have probabilities that sum to 1.0 D:All of the above are true E:A and C are true, but B is false

12	Standard deviation A:Measures return B:Is the same as skewness C:Measures the average amount values differ from the mean D:Measures the relationship between observations E:All of the above are true