1- Which of the following is the best measure of the total risk in a portfolio?
Covariance
Beta
Correlation
Standard deviation
2- Which of the following investment classes had the leas average based on historical data?
Long term government bonds
Large U.S stocks
Small U.S stocks
Short term government bonds
3- Which of the following statements is NOT true?
As interest rates (yields) increase, bond prices increase
In general, bond prices will change as interest rates (yield) change
When yields change, long term bond prices are more volatile than short term bond prices
Increase rate (yield) changes and bond prices are inversely related.