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1. One of the basic principles of finance is that the lower the risk, the lower the __. (1 point) 2. Stock investors expect to

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1. One of the basic principles of finance is that the lower the risk, the lower the __. (1 point) 2. Stock investors expect to make a return on their investment in the form of and Bond investors expect to receive __. (3 points) 3. Match the type of investor to the most likely type of investment (3 points) 3-1. conservative 3-2. moderate 3-3. aggressive a. growth and income fund b. high yield bond c. treasury bills or notes 4. ___ is the process of reducing risk by spreading investment money among several types of investment assets thereby averaging out the high and low returns. (1 point) 5 What is a blue chip stock? (1 point)

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