Question 1

What was the closing price of Stock C on the previous trading day?

Accepted Answer

A)  $24.00 
B)  $23.63 
C)  $24.32 
D)  $23.00 
E)  Cannot tell from the information given 
A)  $24.00 
B)  $23.63 
C)  $24.32 
D)  $23.00 
E)  Cannot tell from the information given

Question 2

Common stock generally allows the stockholder to vote on issues of corporate governance.

Accepted Answer

A) True 
 B)False

Question 3

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.
-An investment offering a high current income would likely be more desirable for [a young couple | a retired couple].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 4

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.
-[Depositing a lump sum and letting it grow | Making monthly deposits to your investment] would be the least costly way to reach a financial goal.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 5

Monte wants to save for his daughter's college education.He would like to have $85,000 in 15 years.If Monte can earn an average of 8.5% on this fund,how much would he need to deposit in the account today to meet his goal?
If Monte has no money to set aside now but wants to save at the end of each month for this goal,how much would he need to add to the account each month?

Accepted Answer

The answer of Monte wants to save for his daughter's...

Question 6

You have been offered an opportunity to buy shares of a diversified collection of securities.You will be investing in

Accepted Answer

A)  bonds. 
B)  common stock. 
C)  mutual funds. 
D)  real estate. 
E)  stock opt ions. 
A)  bonds. 
B)  common stock. 
C)  mutual funds. 
D)  real estate. 
E)  stock opt ions.

Question 7

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.
-An IPO is be sold in the [primary | secondary] market many times.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

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.
-NYSE Euronext is a part of the broker market totaling about [40% | 80%] of world equity markets.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 9

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.
-ABC stock is [up 14.1% | down 27%] since the beginning of the year.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

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.
-Diversification should [reduce the possibility of losing all your money | have little impact on the risk of losing money].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

Retired people often choose investments offering high current income with high risk.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a true statement about the Dow Jones Industrial Average?

Accepted Answer

A)  it is based on 30 industrial stocks 
B)  it is based on 50 transportation stocks 
C)  it is a composite index for the 500 largest industrial publicly traded companies 
D)  it is based on 100 utilities stocks 
E)  it contains 50 blue chip stocks 
A)  it is based on 30 industrial stocks 
B)  it is based on 50 transportation stocks 
C)  it is a composite index for the 500 largest industrial publicly traded companies 
D)  it is based on 100 utilities stocks 
E)  it contains 50 blue chip stocks

Question 13

A sale of 450 shares of stock would involve the trade of an odd lot.

Accepted Answer

A) True 
 B)False

Question 14

The most common reason given for investing is

Accepted Answer

A)  enhancing current income. 
B)  saving for retirement. 
C)  sheltering earnings from taxes. 
D)  paying for an expensive vacation. 
E)  saving for college education. 
A)  enhancing current income. 
B)  saving for retirement. 
C)  sheltering earnings from taxes. 
D)  paying for an expensive vacation. 
E)  saving for college education.

Question 15

A long term investment strategy includes all of the following except

Accepted Answer

A)  stock and bond selection. 
B)  diversification. 
C)  immediate financial needs to pay current bills. 
D)  risk-return behavior. 
E)  investor education. 
A)  stock and bond selection. 
B)  diversification. 
C)  immediate financial needs to pay current bills. 
D)  risk-return behavior. 
E)  investor education.

Question 16

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 single most important reason for investing is for [home purchase down payment | retirement].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

Discount brokers will

Accepted Answer

A)  execute orders. 
B)  give advice. 
C)  watch portfolios. 
D)  do all of these. 
E)  do none of these. 
A)  execute orders. 
B)  give advice. 
C)  watch portfolios. 
D)  do all of these. 
E)  do none of these.

Question 18

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.
-A fixed dividend would be received with [common | preferred] stock.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 19

The single most important reason for investing is for retirement.

Accepted Answer

A) True 
 B)False

Question 20

The smallest round lot of stocks quoted at 23.25 would cost you (ignoring commissions)

Accepted Answer

A)  $ 23.25. 
B)  $ 232.50. 
C)  $ 2,325.00. 
D)  $23,250.00. 
E)  none of these 
A)  $ 23.25. 
B)  $ 232.50. 
C)  $ 2,325.00. 
D)  $23,250.00. 
E)  none of these

What was the closing price of Stock C on the previous trading day?

Common stock generally allows the stockholder to vote on issues of corporate governance.

You have been offered an opportunity to buy shares of a diversified collection of securities.You will be investing in

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. -An IPO is be sold in the [primary | secondary] market many times.

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. -NYSE Euronext is a part of the broker market totaling about [40% | 80%] of world equity markets.

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. -ABC stock is [up 14.1% | down 27%] since the beginning of the year.

Retired people often choose investments offering high current income with high risk.

Which of the following is a true statement about the Dow Jones Industrial Average?

A sale of 450 shares of stock would involve the trade of an odd lot.

The most common reason given for investing is

A long term investment strategy includes all of the following except

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 single most important reason for investing is for [home purchase down payment | retirement].

Discount brokers will

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. -A fixed dividend would be received with [common | preferred] stock.

The single most important reason for investing is for retirement.

The smallest round lot of stocks quoted at 23.25 would cost you (ignoring commissions)

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 11: Investment Planning

What was the closing price of Stock C on the previous trading day?

Common stock generally allows the stockholder to vote on issues of corporate governance.

You have been offered an opportunity to buy shares of a diversified collection of securities.You will be investing in

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. -An IPO is be sold in the [primary | secondary] market many times.

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. -NYSE Euronext is a part of the broker market totaling about [40% | 80%] of world equity markets.

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. -ABC stock is [up 14.1% | down 27%] since the beginning of the year.

Retired people often choose investments offering high current income with high risk.

Which of the following is a true statement about the Dow Jones Industrial Average?

A sale of 450 shares of stock would involve the trade of an odd lot.

The most common reason given for investing is

A long term investment strategy includes all of the following except

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 single most important reason for investing is for [home purchase down payment | retirement].

Discount brokers will

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. -A fixed dividend would be received with [common | preferred] stock.

The single most important reason for investing is for retirement.

The smallest round lot of stocks quoted at 23.25 would cost you (ignoring commissions)

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters