TRUE OR FALSE QUESTIONS INSTRUCTIONS: For True or False question please select ONE answer only; mark "A" for TRUE OR "T" and mark "B" for FALSE OR "F" on the Scantron sheet 1) In the investment world, the two main investment asset classes are stock and bonds. T or F 2) Real estate is an example of an investment asset class. T or F 3) The best performing investment since the1950s has been real estate, not stock or bonds. T or F 4) Investment risk is measured by the variability of ret met risk is measured by the variability of returns of a particular investment and the time value of money. Tor F 5) Not all investment risk is the same. T or F 6) By the term "diversify" we refer to the investment strategy of spreading your investments among a number of different stocks and bonds. TRUE or FALSE 7) The term "risk free rate" refers to that rate of return paid by a US g 8) The "risk-free rate" is usually the lowest return paid by any bond. Tor F e term "risk free rate refers to that rate of return paid by a US government bond. T or F The "risk-free rate" is usually the lowest return paid by any bond. T or F 9) In the "yield curve" discussed in lecture, the risk-free rate usually lies somewhere between the lowest return and the highest return rate for bonds. T or F 10) Savings& Loans institutions offer savings accounts s credit cards. TorF 11) A Money-Market Deposit Account (MMDA) is an alternative to a savings account. TRUE or FALSE 12) Checking accounts do not pay interest on deposits. TRUE or FALSE