Podcast
Questions and Answers
What is the key difference between investing in equity shares and bonds?
What is the key difference between investing in equity shares and bonds?
- Equity investors are owners of the asset, while bond investors are lenders. (correct)
- Equity shares are traded on the stock exchange, while bonds are not.
- Equity shares have a higher risk profile than bonds.
- Equity shares provide a fixed return, while bonds have uncertain returns.
Which of the following asset classes is most likely to generate a predictable, periodic cash flow?
Which of the following asset classes is most likely to generate a predictable, periodic cash flow?
- Equity shares
- Bonds (correct)
- Commodities
- Real estate
What is the key advantage of investing in foreign equity shares compared to domestic equity shares?
What is the key advantage of investing in foreign equity shares compared to domestic equity shares?
- Foreign equity shares provide exposure to another currency. (correct)
- Foreign equity shares have higher returns.
- Foreign equity shares are more liquid.
- Foreign equity shares have lower risk.
Which of the following asset classes is most likely to provide capital appreciation?
Which of the following asset classes is most likely to provide capital appreciation?
Why are the future returns from equity, real estate and commodities considered highly uncertain?
Why are the future returns from equity, real estate and commodities considered highly uncertain?
Which of the following statements about the bond market is most accurate?
Which of the following statements about the bond market is most accurate?
Why are commodities not considered to be a source of intermittent cash flow?
Why are commodities not considered to be a source of intermittent cash flow?
Which of the following is the most accurate description of a fixed-income security?
Which of the following is the most accurate description of a fixed-income security?
How does the risk profile of investing in gold (a commodity) compare to investing in equity shares?
How does the risk profile of investing in gold (a commodity) compare to investing in equity shares?
Which of the following is the most accurate statement about the role of fixed-income securities in an investment portfolio?
Which of the following is the most accurate statement about the role of fixed-income securities in an investment portfolio?
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