Which of the following correlations would represent 2 assets that tend to move in tandem with one another?

A) 0.81.

B) -0.68.

C) 0.16.

D) -0.11.

Answer: A

Which of the following has the greatest liquidity risk?

A) Real estate investment trust (REIT).

B) Municipal bond unit investment trust (UIT).

C) Long-term bond mutual fund.

D) Rental apartment building.

Answer: D

Which of the following investments is the most liquid?

A) Municipal revenue bond issued by a township.

B) Oil drilling limited partnership interest.

C) Common stock in a small oil drilling corporation that is quoted on the Pink Sheets.

D) Long-term municipal bond fund.

Answer: D

Given the following information, calculate the risk-adjusted return:

90-day T-bill rate: 4%.

Actual return: 14%.

Beta 1.40.

CPI 3%.

Standard Deviation 5.0.

A) 2.0.

B) 5.0.

C) 10.0.

D) 11.0.

Answer: A