FIN 461 Exam 1 QUESTIONS AND

FIN 461 Exam #1 QUESTIONS AND ANSWERS 100% score (Newest 2025)

Investors should use a portfolio approach to: - Correct

Answers ✅Reduce risk Which of the following is the best reason for an investor to be concerned with the composition of a portfolio?

• Risk reduction
• Downside risk protection
• Avoidance of investment disasters - Correct Answers

✅Risk reduction With respect to the formation of portfolios, which of the following statements is most accurate?

• Portfolios affect risk less than returns
• Portfolios affect risk more than returns
• Portfolios affect risk and returns equally - Correct

Answers ✅Portfolios affect risk more than returns 1 / 2

FIN 461 Exam #1 QUESTIONS AND ANSWERS 100% score (Newest 2025) Which of the following institutional investors will most likely have the longest time horizon?

• Defined benefit plan
• University endowment
• Life insurance company - Correct Answers ✅University

endowment A defined benefit plan with a large number of retirees is likely

have a high need for: - Correct Answers ✅Income

Which of the following institutional investors is most likely to manage investments in mutual funds?

• Insurance Companies
• Investment Companies
• University Endowments - Correct Answers ✅Investment

Companies

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