1.) Mutual Funds provide an affordable way to diversity a portfolio. True or False? 2.)...

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Finance

1.) Mutual Funds provide an affordable way to diversity a portfolio. True or False?

2.) The risk-free rate of return is equal to the real rate plus the inflation premium. True or False?

3.) Changes in the inflation rate have a direct and pronounced effect on market interest rates. True or False

4.) The risk free rate of return considers the expected rate of inflation. True or False?

5.) Margin trading mitigates risk. True or False

6.) The rating services do not pass credit judgments on U.S. Treasury Bonds because these are obligations of the federal government and as such are backed by the full faith and credit of the governments. Thus, no ratings are required. True or False

7.) Capitalization = Senior Debt + Mortgage Debt. True or false

8.) Total Return for a Bond = Interest Payments received plus change in Bond price. True or false

9.) Stocks generally have produced positive inflation adjusted rates of return over the long-term. True or False?

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