Question 1

In which of the following type of investment is the most liquidity risk?

Accepted Answer

A)  Common stock 
B)  Corporate bonds 
C)  Treasury bonds 
D)  Land 
E)  Mutual fund shares 
A)  Common stock 
B)  Corporate bonds 
C)  Treasury bonds 
D)  Land 
E)  Mutual fund shares

Question 2

A bond may sell

Accepted Answer

A)  at par value. 
B)  below par value. 
C)  above par value. 
D)  none of these. 
E)  any of these. 
A)  at par value. 
B)  below par value. 
C)  above par value. 
D)  none of these. 
E)  any of these.

Question 3

If the current price of an investment increases,what affect does the price increase have on approximate yield

Accepted Answer

A)  moderately increase yield 
B)  decrease yield 
C)  will not affect the yield 
D)  drastically increase yield 
E)  none of the above 
A)  moderately increase yield 
B)  decrease yield 
C)  will not affect the yield 
D)  drastically increase yield 
E)  none of the above

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.
-Dividends and earnings per share [refer | do not refer] to the same thing.

Accepted Answer

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

Question 5

Treasury notes,bills,and bonds represent loans to the federal government.

Accepted Answer

A) True 
 B)False

Question 6

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.
-You would expect the higher rate of interest from a bond with a [AAA | C] bond rating.

Accepted Answer

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

Question 7

Income stocks are similar to bonds in that they pay annual interest to owners.

Accepted Answer

A) True 
 B)False

Question 8

A high inflation rate would result in a high degree of

Accepted Answer

A)  business risk. 
B)  financial risk. 
C)  market risk. 
D)  purchasing power risk. 
E)  interest rate risk. 
A)  business risk. 
B)  financial risk. 
C)  market risk. 
D)  purchasing power risk. 
E)  interest rate risk.

Question 9

The approximate yield to maturity when the average income is $3.00,the average capital gain is $6.00,the average investment is $27.00,and the investment is held for 3 years is

Accepted Answer

A)  11 percent. 
B)  33 percent. 
C)  27 percent. 
D)  21 percent. 
E)  50 percent. 
A)  11 percent. 
B)  33 percent. 
C)  27 percent. 
D)  21 percent. 
E)  50 percent.

Question 10

In most investments,there is a risk-return tradeoff.

Accepted Answer

A) True 
 B)False

Question 11

Calculate the dividend yield on OPQ stock.Earnings per share are $2.75 and the quarterly dividend is 25 cents.The book value is $15.20 per share while the market value is $25.00.(Show all work.)

Accepted Answer

Dividend y

Question 12

Stocks whose price movements who tend to follow the business cycle are called

Accepted Answer

A)  cyclical stocks 
B)  defensive stocks 
C)  speculative stocks 
D)  income stocks 
E)  tech stocks 
A)  cyclical stocks 
B)  defensive stocks 
C)  speculative stocks 
D)  income stocks 
E)  tech stocks

Question 13

Changes in the value of securities due to social,political,or economic factors are referred to as market risk.

Accepted Answer

A) True 
 B)False

Question 14

All securities involve risk of some kind.

Accepted Answer

A) True 
 B)False

Question 15

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.
-Past returns on an investment are [an indication | a guarantee] of future returns.

Accepted Answer

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

In which of the following type of investment is the most liquidity risk?

A bond may sell

If the current price of an investment increases,what affect does the price increase have on approximate yield

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. -Dividends and earnings per share [refer | do not refer] to the same thing.

Treasury notes,bills,and bonds represent loans to the federal government.

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. -You would expect the higher rate of interest from a bond with a [AAA | C] bond rating.

Income stocks are similar to bonds in that they pay annual interest to owners.

A high inflation rate would result in a high degree of

The approximate yield to maturity when the average income is $3.00,the average capital gain is $6.00,the average investment is $27.00,and the investment is held for 3 years is

In most investments,there is a risk-return tradeoff.

Calculate the dividend yield on OPQ stock.Earnings per share are $2.75 and the quarterly dividend is 25 cents.The book value is $15.20 per share while the market value is $25.00.(Show all work.)

Stocks whose price movements who tend to follow the business cycle are called

Changes in the value of securities due to social,political,or economic factors are referred to as market risk.

All securities involve risk of some kind.

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. -Past returns on an investment are [an indication | a guarantee] of future returns.

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

Investment Planning

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 12: Investing in Stocks and Bonds

In which of the following type of investment is the most liquidity risk?

A bond may sell

If the current price of an investment increases,what affect does the price increase have on approximate yield

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. -Dividends and earnings per share [refer | do not refer] to the same thing.

Treasury notes,bills,and bonds represent loans to the federal government.

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. -You would expect the higher rate of interest from a bond with a [AAA | C] bond rating.

Income stocks are similar to bonds in that they pay annual interest to owners.

A high inflation rate would result in a high degree of

The approximate yield to maturity when the average income is $3.00,the average capital gain is $6.00,the average investment is $27.00,and the investment is held for 3 years is

In most investments,there is a risk-return tradeoff.

Calculate the dividend yield on OPQ stock.Earnings per share are $2.75 and the quarterly dividend is 25 cents.The book value is $15.20 per share while the market value is $25.00.(Show all work.)

Stocks whose price movements who tend to follow the business cycle are called

Changes in the value of securities due to social,political,or economic factors are referred to as market risk.

All securities involve risk of some kind.

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. -Past returns on an investment are [an indication | a guarantee] of future returns.

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

Investment Planning

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters