1. If the investor expects a higher rate of inflation over the investment holding period, then he will A. increase the

[answerhappygod]

1. If the investor expects a higher rate of
inflation over the investment holding period, then he
will
A. increase the required rate of return and be more likely to
define risk as variance of expected return
B. increase the required rate of return
C. be more concerned about liquidity
D. be more likely to define risk as variance of expected
return
2. The typical investor attitude toward risk
is:
A. a preference for a higher return for a given level of
risk.
B. when the risk level of an investment increases, the investor
expects an increase in return.
C. all of these mentioned are correct.
D. a preference for a lower level of risk for a given rate of
return.
3. If the investor expects a lower rate of inflation
over the investment holding period, then he will
A. be more concerned about liquidity
B. decrease the required rate of return
C. increase the required rate of return and be more likely to
define risk as variance of expected return
D. be more likely to define risk as variance of expected
return
4. An investor would prefer a tax credit rather
than a tax deduction because
A. it puts him in a lower tax bracket
B. it is considered an expense item which results in a lower
taxable income
C. it reduces his tax liability by a varying percentage
D. it reduces his tax liability on a dollar for dollar basis
none of the choices are correct