Portfolio Management Involves Making Decisions in Order to

question 28

Multiple Choice

Portfolio management involves making decisions in order to

• A)buy low and sell high.
• B)maximize risk and return.
• C)accept risk.
• D)own stocks in bear markets.
• E)meet your investment needs and objectives.

---

Definitions:

Flow Variable

A quantity that is measured over a specified period of time, contrasting with stock variables which are measured at one specific time.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including currency, coins, and balances held in checking and savings accounts.

Household Debt

The total amount of debt, including mortgages, credit cards, loans, etc., owed by all members of a household.

Macroeconomics

The branch of economics that studies overall economic dynamics such as total output, employment levels, and inflation across an entire economy.