1. One feature that mutual funds and exchange traded funds have in common is
a) ?investors purchase share from the funds managers rather than from other investors.
?b) they trade continuously throughout the trading day.
c) ?their portfolios are always based on one of the major market indexes.
d) ?they invest in broadly diversified portfolios of securities.
2. Shell’s stock price jumped when it announced that it discovered a large oil field in the Gulf of Mexico. This is an example of ___________.
A. Market risk
B. Unsystematic risk
C. Systematic risk
D. Undiversifiable risk