Quiz Ch 11 – T/F Performance of Cyclical Stocks in Line with Broader Market
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Cyclical stocks tend to thrive when the overall market is performing well.
True or false: Cyclical stocks tend to thrive when the overall market is performing well.
True or false: Historically, over investment horizons of more than 20 years, long-term bonds have typically shown better performance than common stocks.
True or false: A standard deviation will surpass that of the other portfolio when one portfolio exhibits a greater variance compared to another.
True or false: Among portfolios of securities, long-term bonds are the sole category found to be riskier than common stocks.
True or false: Typically, high-risk assets yield higher average returns compared to low-risk assets.
True or false: A substantial portion of the total market value of stocks traded in the United States is represented by the S&P 500.
True or false: The risk that persists within a thoroughly diversified stock portfolio is a specific risk.
True or false: A significant number of investors who purchased shares in the general stock market index in October 2007 witnessed a decline in the value of their investment over the subsequent year and a half.
True or false: The addition of each extra stock to a portfolio results in an equal decrease in the portfolio’s risk level.
True or false: Standard deviation is the mathematical measure used to quantify volatility in the stock market.