23. Investors choose to invest in high risk investment when ___________.

1. there is no safe alternatives except holding cash
2. the return is adequate for the level of risk
3. the return is short
4. they are true speculators.

24. Which of the following investments gives the investor part ownership of a corporation?

1. Real estate.
2. Money market account.
3. Stock.
4. Collectibles.

43. A ____________ issue shares traded on the stock exchange to raise fund.

1. public listed company
2. private company
3. enterprise
4. franchise

44. Which of the following is considered a risk when investing?

1. You could lose your money.
2. Inflation.
3. Your investment is not liquid.
4. All of the above.

45. When _________ rate is ________ than the rate of return mean you will receive a negative real rate of return.

1. interest, lower
2. inflation, higher
3. inflation, lower
4. interest, higher

46. Security A, pays quarterly dividend of RM0.50. Currently bought at RM25. After six months sold at RM27. What is the total return on the investment?

1. 12%.
2. 8%.
3. 108%.
4. 92.59%.

47. Example of investment that have liquidity risk is __________.

1. gold
2. silver
3. US currency account
4. old coins collections.

23. ____________ is a method of reducing investment risk.

1. Diversification
2. Dollar averaging
3. Speculative investment
4. Mutual fund

24. Which would be the most liquid asset from the following investment?

1. House.
2. Shares of listed company.
3. Shares of private company.
4. My old coins collections.

25. A ___________ is a stock that pays higher-than-average dividends compared to other stock.

1. defensive stock
2. income stock
3. cyclical stock
4. bonus stock