Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please ASAP 1. Which of the following is an advantage of imvesting in ETFs? a) They provide limited diversification b) They have high fees compared

please ASAP
image text in transcribed
1. Which of the following is an advantage of imvesting in ETFs? a) They provide limited diversification b) They have high fees compared to mutual funds c) They are traded on stock exchanges d) They are not subject to market fluctuations 2. Which of the following statements is true about the Capital Market Line (CMI)? A) The CML represents the set of portfolios that offer the highest return for a given level of risk. B) The CML is a straight line that intersects the y-axis at the risk-free rate and tangent to the efficient frontier at M, the market portlolio representation. C) The CML shows the relationship between expected return and market risk. D) the CML is only applicable to portfolios that are fully invested in risky assets. 3. What is the purpose of diwersification in imvesting? a) To reduce risk by spreading investments across different assets b) To increase risk by concentrating investments in a single asset c) To maximize returs by investing only in high-risk assets d) To aroid investment fees and takes 4. Which of the following is an advantage of imverting in mutual funds? a) They offer guaraneed returns b) They provide high liquidity c) They allow for diversification without requiring a large investment d) They are insured by the FDic 5. Which of the following is a type of imvestment risk? a) inflation risk b) Exchange rate risk c) Interest rate rikk d) All of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Banking Reforms And Monetary Policy In The Peoples Republic Of China

Authors: Yong Guo

1st Edition

1403900787,1403914540

More Books

Students also viewed these Finance questions

Question

In an oligopoly, how does differentiation raise profit?

Answered: 1 week ago