Question 1 (1 point)

The future value of an investment decreases to its present value

True

False

Question 2 (1 point)

The risk profile of an investment could be described by:

Risk management strategies

A Risk Register

A cash flow plan

A risk matrix

Question 3 (1 point)

Which of the following are ways to mitigate risks to financial investments?

Risk acceptance

Risk transfer

Risk Mitigation

All of the above

Question 4 (1 point)

What is Net Worth?

the monthly inflow of income versus

the outflow of expenses

personal assets minus personal

liabilities

anything of financial value

Question 5 (1 point)

A risk that carries a high probability and high impact could be described as ?

A contingency risk

A residual risk

A secondary risk

A high risk

Question 6 (1 point)

Which of the following is the primary function of insurance?

Having the insurance company pay for

a loss

Removing risks

Pooling and risk sharing

Risk avoidance

Question 7 (1 point)

The payback period does not take which of the following into its assessment of an investment ?

The time to recoup the investment

The investment amount after the

interest rate has been deducted

The interest rate after the investment

amount has been recovered

The inflows after the investment

amount has been recovered

Question 8 (1 point)

Investments with higher payouts carry lower risk to the investor

True

False

Question 9 (1 point)

The risks identified when an investment is assessed do not change

True

False

Question 10 (1 point)

The payback period is the best technique to evaluate the risk on an investment

True

False

Question 11 (1 point)

The future value of an investment is not always the same as the present value of the investment

True

False

Question 12 (1 point)

Which statement best describes the present value of money ?

it is the value of an investment upon its

maturity

It is the interest that an investment

makes at a given interest rate if it were invested today

It is the current value of the present

amount of an investment if it were invested today at a given interest rate

It is the current value of the future

amount of an investment if it were invested today at a given interest rate