Use the Information for the Question(s)below

question 54

Multiple Choice

Use the information for the question(s) below.
Suppose you invest $20 000 by purchasing 400 shares of BHP Billiton (BHP) at $13 per share, 500 shares of ANZ Bank (ANZ) at $20 per share, and 200 shares of Flight Centre (FLT) at $24 per share.
-The expected return of a portfolio that is equally invested in Data#3 and Metcash is closest to:

• A)44%.
• B)14%.
• C)15%.
• D)29%.

Understand the implications of regret theory on investment behavior and decision-making.

Explain market breadth and its measurement in financial markets.

Recognize the phenomenon of mental accounting and its impact on financial decision-making.

Understand technical analysis, including the interpretation of charts, ratios, and the concept of support and resistance levels.

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Definitions:

Illiquid

Describes an asset or security that cannot easily be sold or exchanged for cash without a substantial loss in value.

Real Assets

Physical or tangible assets such as gold, real estate, and commodities, which have intrinsic value due to their substance and physical properties.

Asset Allocation

The allocation of investment portfolio across various asset classes, such as stocks, bonds, and cash, to achieve a specific investment goal.

Broad Asset Classes

Categories of assets, such as stocks, bonds, real estate, and commodities, that behave similarly in the marketplace and are subject to the same laws and regulations.