Exam 13: Investing Fundamentals

Brenda Lee has received a $12,000 gift from her mother and is trying to decide how to invest it.She thinks she would like to invest it in stocks,because she knows that stocks have been appreciating by about 10% over the last several years.What aspect of investing interests Brenda?

Which one of the following individuals should be receptive to speculative investments with higher risks?

Which type of risk affects only a specific company or a specific industry?

Which one of the following statements is true regarding global investments?

All except which one of the following are good ways to acquire money for starting an investment program?

It is suggested that you allocate a percentage of your assets to growth investments based on the:

An emergency fund is an amount of money that can be obtained quickly in case of immediate need.

Typical asset classes used for diversification include all of the following except:

The money obtained by a company from selling corporate bonds:

A prospectus discloses information about corporate earnings,assets and liabilities,products or services,and the qualifications of top management.

Establishing a(n)________ ensures that you will have an amount of money that can be obtained quickly in case of immediate need.

There is no relationship between risk and safety.

The U.S.government is the world's largest provider of investment information.

If you can leave your investments alone and let them work for 5 to 10 years or more,then you can invest in:

Asset allocation is the process of spreading your assets among several different types of investments to lessen risk.