BF120 Quiz 1 Review

The possibility of losing an investment because of the rise in an interest rate is known as what? 

• Interest Rate Risk

• Market Risk

• Investment Risk

• Data Risk

The total risk associated with a portfolio investment package is often called what? 

• Data Risk

• Portfolio Risk

• Investment Risk

• Market Risk

The individual who buys and sells investment securities for their own accounts is called what? 

• Risk Analyst

• Investors

• Dealers

• Financial Analyst

An increase in the value of one currency in relation to other currencies is commonly referred to as: 

• Risk

• DeValuation

• Upward Trend

• Revaluation

A portfolio whose return is not maximized given the amount of risk it faces is often referred to as: 

• Inefficient Portfolio

• underperforming
• Downward Trend

• suboptimal

_______________ associated with the rise and fall of a stock’s price in relation to the market.

The______ market occurs when prices of stocks or other securities fall. 

The total of income plus capital gains earned on an investment is known as_______

Equipment, inventory or other goods that are pledged to the bank in the case the company can't make a loan payment.

Which of the following is a primary goal of risk management in investing?

• Maximizing returns at any cost.

• Eliminating all investment risks.

• Minimizing potential financial losses.

• Investing in only guaranteed securities.