1. At what point during the loan process is the ideal time to make sure that all the documents are complete and correct?
At the pre-loan closing meeting
At the loan signing and closing
At a follow-up meeting after the loan closes
At a customer/bank negotiation meeting
2. Active management:
can outperform a passive strategy if markets are strong-work efficient.
cannot outperform a passive strategy if markets are semi-strong form efficient
cannot outperform a passive strategy if markets are weak form efficient
can outperform a passive strategy if markets are semi-strong form efficient
3. According to Markowitz portfolio theory
a portfolio with the minimum risk for its level of expected return lies on the efficient frontier
combing any two risky assets in portfolio will reduce unsystematic risk compared to a portfolio holding one of two risky assets
The investor who invest in both bonds and stocks should have more risk than the investor who invest in bonds only
adding a risky stock to a (less risky) bond portfolio can reduce portfolio risk