Determine the investor risk tolerance

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The global economy has its most immediate impact on domestic firms through:

a) Geo-political events

b) The growth of currently underdeveloped markets

c) Currency exchange rates

d) Actions taken by the World Trade Organization

In Portfolio Theory, the overall investment process is a two-step process:

a) Select individual assets, then allocate funds between asset classes

b) Allocate funds between a risky and risk-free asset, then build an efficient portfolio as the risky asset

c) Invest in the market portfolio, then invest in a smaller portfolio

d) Determine the investor’s risk tolerance, then decide whether to invest in risky asset or not

True or False – Despite all the methods and tools available to analysts, the primary source of stock value is the growth of the firm.

True or False – It’s uncommon for a particular stock’s price to trend upwards when the industry to which it belongs is suffering a downturn.

Reference no: EM131544393

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