Question 1

Bonds can be used conservatively by investors seeking current income and aggressively by investors seeking capital gains.

Accepted Answer

A) True 
 B)False

Question 2

Bond return can include both interest and capital gains.

Accepted Answer

A) True 
 B)False

Question 3

Bond prices and current interest rates are ____ related.

Accepted Answer

A)  inversely 
B)  directly 
C)  slightly 
D)  positively 
E)  none of the above 
A)  inversely 
B)  directly 
C)  slightly 
D)  positively 
E)  none of the above

Question 4

Monte Jackson is considering the purchase of XYZ stock and would like to estimate its approximate yield if he holds it 5 years.The current price is $20 and Monte expects it would rise to $30 over the 5-year holding period.The expected dividend is $1.00 each year.(Show all work. )

Accepted Answer

The answer of Monte Jackson is considering the purchase of...

Question 5

Publicly traded issues are shares only available to qualified investors.

Accepted Answer

A) True 
 B)False

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Zero coupon bonds will pay interest [at maturity | annually].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 7

The tech stock bubble of the last 1990's had the most influence on the ____ index.

Accepted Answer

A)  DJIA 
B)  S&P 500 
C)  NASDAQ 
D)  Lipper Bond 
E)  S&P 100 
A)  DJIA 
B)  S&P 500 
C)  NASDAQ 
D)  Lipper Bond 
E)  S&P 100

Question 8

Which of the following is most likely to occur immediately following the announcement that the rating on a corporate bond has been lowered to junk status?

Accepted Answer

A)  The yield-to-maturity on the bond will decline. 
B)  The price of the bond will decline. 
C)  The price of the bond will increase 
D)  More than one of the above 
E)  None of the above 
A)  The yield-to-maturity on the bond will decline. 
B)  The price of the bond will decline. 
C)  The price of the bond will increase 
D)  More than one of the above 
E)  None of the above

Question 9

Compound interest is a very important concept when evaluating the return on an investment you plan to hold for a long time.

Accepted Answer

A) True 
 B)False

Question 10

Price fluctuations of defensive stocks follow the fluctuations of the market as a whole.

Accepted Answer

A) True 
 B)False

Question 11

Net Profit margin is a key measure of profitability that relates the net profits of a firm to its sales.

Accepted Answer

A) True 
 B)False

Question 12

Without using margin accounts,common stock holders cannot lose more than they initially invest in a common stock.

Accepted Answer

A) True 
 B)False

Question 13

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The issuer of your corporate bond has the right to retire it before maturity.You have a [callable | retireable] bond.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 14

A Puppy Pet Services $1,000 bond has a 7 1/2% coupon rate,matures in 2010 and is currently quoted at 82.The current yield is

Accepted Answer

A)  6.15%. 
B)  7.50%. 
C)  9.15%. 
D)  10.27%. 
E)  11.43%. 
A)  6.15%. 
B)  7.50%. 
C)  9.15%. 
D)  10.27%. 
E)  11.43%.

Question 15

All treasury bonds issued today are non-callable.

Accepted Answer

A) True 
 B)False

Question 16

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Stocks of stable,older companies are called [earnings | blue chip] stocks.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The [higher | lower] the PE ratio,the less confidence investors are said to have in the corporation.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 18

All categories of common stock are voting.

Accepted Answer

A) True 
 B)False

Question 19

Event risk occurs when something substantial happens to a company that has an immediate impact on its financial condition.

Accepted Answer

A) True 
 B)False

Question 20

Risk and return are ____ related.

Accepted Answer

A)  inversely 
B)  directly 
C)  slightly 
D)  oppositely 
E)  none of the above 
A)  inversely 
B)  directly 
C)  slightly 
D)  oppositely 
E)  none of the above

Bonds can be used conservatively by investors seeking current income and aggressively by investors seeking capital gains.

Bond return can include both interest and capital gains.

Bond prices and current interest rates are ____ related.

Monte Jackson is considering the purchase of XYZ stock and would like to estimate its approximate yield if he holds it 5 years.The current price is $20 and Monte expects it would rise to $30 over the 5-year holding period.The expected dividend is $1.00 each year.(Show all work. )

Publicly traded issues are shares only available to qualified investors.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Zero coupon bonds will pay interest [at maturity | annually].

The tech stock bubble of the last 1990's had the most influence on the ____ index.

Which of the following is most likely to occur immediately following the announcement that the rating on a corporate bond has been lowered to junk status?

Compound interest is a very important concept when evaluating the return on an investment you plan to hold for a long time.

Price fluctuations of defensive stocks follow the fluctuations of the market as a whole.

Net Profit margin is a key measure of profitability that relates the net profits of a firm to its sales.

Without using margin accounts,common stock holders cannot lose more than they initially invest in a common stock.

A Puppy Pet Services $1,000 bond has a 7 1/2% coupon rate,matures in 2010 and is currently quoted at 82.The current yield is

All treasury bonds issued today are non-callable.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Stocks of stable,older companies are called [earnings | blue chip] stocks.

All categories of common stock are voting.

Event risk occurs when something substantial happens to a company that has an immediate impact on its financial condition.

Risk and return are ____ related.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 12: Investing in Stocks and Bonds

Bonds can be used conservatively by investors seeking current income and aggressively by investors seeking capital gains.

Bond return can include both interest and capital gains.

Bond prices and current interest rates are ____ related.

Monte Jackson is considering the purchase of XYZ stock and would like to estimate its approximate yield if he holds it 5 years.The current price is $20 and Monte expects it would rise to $30 over the 5-year holding period.The expected dividend is $1.00 each year.(Show all work. )

Publicly traded issues are shares only available to qualified investors.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Zero coupon bonds will pay interest [at maturity | annually].

The tech stock bubble of the last 1990's had the most influence on the ____ index.

Which of the following is most likely to occur immediately following the announcement that the rating on a corporate bond has been lowered to junk status?

Compound interest is a very important concept when evaluating the return on an investment you plan to hold for a long time.

Price fluctuations of defensive stocks follow the fluctuations of the market as a whole.

Net Profit margin is a key measure of profitability that relates the net profits of a firm to its sales.

Without using margin accounts,common stock holders cannot lose more than they initially invest in a common stock.

A Puppy Pet Services $1,000 bond has a 7 1/2% coupon rate,matures in 2010 and is currently quoted at 82.The current yield is

All treasury bonds issued today are non-callable.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Stocks of stable,older companies are called [earnings | blue chip] stocks.

All categories of common stock are voting.

Event risk occurs when something substantial happens to a company that has an immediate impact on its financial condition.

Risk and return are ____ related.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters