BFN2054 Portfolio Management (2030)

1. Portfolio management is primarily concerned with

a. increasing return

b. reducing risk

c. predicting the future

d. explaining the past

2. "The lower the dispersion in returns, the greater the accumulated value of

otherwise equal investments." This statement is

a. true

b. false

c. true for the short run, but not necessarily true for the long run

d. true for the long run, but not necessarily true for the short run

3. A portfolio should have both ______ and ______ objective.

a. a short term, a long term

b. a primary, a secondary

c. an initial, a final

d. an explicit, an implicit

4. Portfolio protection was called ______ until the stock market crash in 1987.

a. portfolio insurance

b. portfolio hedging

c. dynamic hedging

d. arbitrage

5. A stock is a good investment if the company is

a. well-run

b. in a growing industry

c. poorly run but the stock is underpriced

d. extremely popular among investors

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