Question

1) Your return objective represents __________.
Select one:
a. your investment risk.
b. the annual return needed to meet your goals.
c. your time horizon.
d. the amount you have to invest to start with.
e. your risk tolerance.

2) Your return objective represents __________.
Select one:
a. your investment risk.
b. the annual return needed to meet your goals.
c. your time horizon.
d. the amount you have to invest to start with.
e. your risk tolerance.

3) The purpose of pro forma financial statements is to show __________.
Select one:
a. projected future value.
b. consequences of choices.
c. scenarios for financial planning.
d. a. and b.
e. a., b., and c.

4) A calculation showing your mortgage payment per $1,000 of the loan is the mortgage __________.
Select one:
a. interest rate.
b. maturity date.
c. factor.
d. principal.
e. amortization.

5) Hazards covered by the homeowner’s policy include all the following EXCEPT__________.
Select one:
a. explosions.
b. floods and earthquakes.
c. riots.
d. smoke damage.
e. damage caused by aircraft or vehicles.

Answer 1

1. The return objective will be always inclined at meeting the annual return which will be needed to meet the long term goals, because the objectives are always short term in nature, and the goals are always long term in nature, so return objectives are always meant for fulfilling the long-term goals.

The return objective will not be defining the investment risk or the time horizon or risk tolerance.

Correct answer option (B) the annual return needed to meet your your goals.