1.
In an efficient and informed capital market environment, those investments with the greatest return tend to have the greatest risk.
True False
2.
Rare paintings and baseball cards may be considered as forms of investment.
True False
3.
Mutual funds are a form of direct equity claims.
True False
4.
Warrants are a form of direct equity claims.
True False
5.
Pension funds are a form of indirect equity claims.
True False
6.
An investor can totally eliminate time-consuming investment management activities by participating in a mutual fund or limited partnership.
True False
7.
The riskiness of an investment is measured by the dispersion of possible outcomes.
True False
8.
Unlike the risk-free rate, the level of the risk premium varies by investment.
True False