Exercise
Answer the following questions
- 1. Which of the following is least likely to be a reason that an individual invests in precious metals?
- A. Their rates of return are less volatile than those of stocks and bonds.
- B. They can often be used to diversify a traditional portfolio.
- C. Their rates of return have a low correlation with most other types of investment.
- D. The investor believes that though the supply of precious metals is limited, demand for precious metals will only increase as the world’s population grows.
- 2. True or false. An investor will pay annual taxes on precious metals.
- 3. True or false. Financial experts generally agree that precious metals are a benefit to a typical investment portfolio.
Answers
- 1. A . While their rates of return may be separated from market forces that drive and hinder other types of investment, they a