LETRS Unit 4 session 6 Assessment Questions with accurate answers. 100% Verified. Rated A

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LETRS Unit 4 session 6 Assessment Questions with accurate answers. 100% Verified. Rated A When an investor's original value is subtracted from the ending value, and then has the income received o... ver that time period added to it which is then divided by the original cost, the result is: A)annualized return. B)internal rate of return. C)expected return. D)holding period return. - ✔✔D The formula for real rate of return would most likely be used when the adviser wishes to: A)measure inflation-adjusted performance. B)analyze investment returns in terms of uneven cash flows. C)measure risk-adjusted performance. D)measure after-tax investment performance. - ✔✔A In order to compute an investor's real rate of return on a common stock holding, all of the following are necessary EXCEPT: A)inflation rate. B)dividends. C)appreciation. D)marginal tax bracket. - ✔✔D One of the important roles of an investment adviser representative is assisting clients in analyzing the performance of securities held in their portfolios. Which of the following is the best measurement of a security's performance? A)Beta B)Yield C)Standard deviation D)Total return - ✔✔D Which of the following is NOT related to the variability of a portfolio's returns? A)Security selection. B)Total return. C)Market timing. D)Asset allocation. - ✔✔B In order to calculate an investor's holding period return, it is necessary to know: - value of the portfolio at the beginning of the period. - value of the portfolio at the end of the period. - income received during the period. - capital appreciation or depreciation over the period. - ✔✔1, 2, 3 An investor owns a common stock that has been paying a dividend at an annual rate of $2.00. If the investor buys 100 shares of the stock at $50 and sells it 3 months later for $52, the approximate annualized rate of return is: A)4%. B)5%. C)12%. D)20%. - ✔✔D - Annualized rate of return is computed [Show More]

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