Quiz 6 - 8 Written Questions

Question 1

True or False: Preferred shareholders have greater voting rights compared to common shareholders.

Answer 1

False

Question 2

True or false: A company with a higher share price has greater weight in the S&P/TSX Composite Index than a company with a lower share price.

Answer 2

False

Question 3

True or false: A limited partner in a partnership is personally liable for the debts of the business.

Answer 3

FALSE

Question 4

True or false: The investment dealer in a bought deal bears most of the risk in the deal.

Answer 4

TRUE

Question 5

The difficulty relating to monetizing an investment because of its low trading volume would be defined as what type of risk?

Answer 5

Liquidity

Question 6

In order to gain the maximum benefits of diversification, we should seek investments with the following characteristics: (investments that have ___ correlation)

Answer 6

Investments that have as much negative correlation as possible.