Which of the following description is true regarding to investment strategies?

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1. Conservative low risk, high capitalization, predictable earnings, high yield, and low P/E ratios
2. Growth high risk, low capitalization, limited earnings record, and no dividends
3. Venture high risk, average capitalization, low dividend payout, and high P/E ratios
4. Speculative maximum risk, longer term, average price volatility, and little earnings

You purchase 500 shares of BMW on the Frankfurt Stock Exchange paying 55 per share. One year later, BMW shares are trading at 58.5 per share. The spot exchange rate is $1.58 per euro. The forward exchange rate is $1.50 per euro. How much profit do you make?

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1. $425
2. $524
3. $245
4. -$425

Which of the following investment would not be considered as part of the fixed income component in an investors portfolio?

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1. Two-year bonds
2. Preferred shares
3. Mortgages
4. Guaranteed investment certificates