California Coast University BAM513 Unit 2 Exam/California Coast University BAM513 Unit 2 Exam

  
Question
1) If a person’s required return does not change when risk increases, that person is said to be
a. risk-indifferent.
b. risk-aware.
c. risk-averse.
d. risk-seeking.
2) The ________ of an asset is the change in value plus any cash distributions expressed
as a percentage of the initial price or amount invested.
a. return
b. risk
c. probability
d. value
3) Prime-grade commercial paper will most likely have a higher annual return than
a. a common stock.
b. a Treasury bill.
c. a preferred stock.
d. an investment-grade bond.
4) The ________ of an event occurring is the percentage chance of a given outcome.
a. reliability
b. standard deviation

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