Question 1

Advantages of a dividend reinvestment plan can include

Accepted Answer

A)  stock sold at a discount. 
B)  guaranteed rate of return. 
C)  tax advantages. 
D)  a and c 
E)  a, b, and c 
A)  stock sold at a discount. 
B)  guaranteed rate of return. 
C)  tax advantages. 
D)  a and c 
E)  a, b, and c

Question 2

Calculate the earnings per share of a company with the following information? (Show all work.)

Accepted Answer

The answer of Calculate the earnings per share of a...

Question 3

Companies whose earnings have increased at an above-average level over the recent past are called

Accepted Answer

A)  blue-chip companies. 
B)  growth companies. 
C)  income companies. 
D)  speculative companies. 
E)  defensive companies. 
A)  blue-chip companies. 
B)  growth companies. 
C)  income companies. 
D)  speculative companies. 
E)  defensive companies.

Question 4

An investment is acceptable if the expected rate of return is greater than the desired rate of return.

Accepted Answer

A) True 
 B)False

Question 5

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 growth stock would be expected to pay a [high | low] level of dividends.

Accepted Answer

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

Question 6

Low price/earnings ratios indicate limited or low investor confidence.

Accepted Answer

A) True 
 B)False

Question 7

Stocks with high betas will have larger price gains but lower price declines than those with low betas.

Accepted Answer

A) True 
 B)False

Question 8

The best returns in the stock market will be achieved by

Accepted Answer

A)  remaining fully invested 
B)  missing the five best months 
C)  missing the ten best months 
D)  missing the fifteen best months 
E)  missing the twenty best months 
A)  remaining fully invested 
B)  missing the five best months 
C)  missing the ten best months 
D)  missing the fifteen best months 
E)  missing the twenty best months

Question 9

A beta of more than one would be expected of a speculative stock.

Accepted Answer

A) True 
 B)False

Question 10

A stocks beta is an indication of its relationship to the general market.

Accepted Answer

A) True 
 B)False

Question 11

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.
-Tech stocks are nearly always [speculative | growth | speculative or growth] stocks.

Accepted Answer

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

Question 12

____ stocks are really purchased as a gamble rather then because they have a proven history of good performance.

Accepted Answer

A)  Blue-chip 
B)  Growth 
C)  Cyclical 
D)  Defensive 
E)  Speculative 
A)  Blue-chip 
B)  Growth 
C)  Cyclical 
D)  Defensive 
E)  Speculative

Question 13

If the current price of an investment increases,the investment's annual yield will decrease.

Accepted Answer

A) True 
 B)False

Question 14

A bond is quoted as 6 ¹/₂ 05.The bondholder would receive ____ interest per year.ions?

Accepted Answer

A)  $ 5 
B)  $ 50 
C)  $ 65 
D)  $500 
E)  $650 
A)  $ 5 
B)  $ 50 
C)  $ 65 
D)  $500 
E)  $650

Question 15

When interest rates rise,bond prices will

Accepted Answer

A)  return to a steady price. 
B)  rise. 
C)  fall. 
D)  vary unpredictably. 
E)  not be affected. 
A)  return to a steady price. 
B)  rise. 
C)  fall. 
D)  vary unpredictably. 
E)  not be affected.

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 usual face value of a corporate bond is [$1,000 | $500].

Accepted Answer

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

Question 17

To most stockholders,the main advantages of common stock investment are

Accepted Answer

A)  attractive returns and active trading. 
B)  attractive returns and voting rights. 
C)  high dividends and active trading. 
D)  high risk and active trading. 
E)  high risk and attractive returns. 
A)  attractive returns and active trading. 
B)  attractive returns and voting rights. 
C)  high dividends and active trading. 
D)  high risk and active trading. 
E)  high risk and attractive returns.

Question 18

When evaluating a stock as a possible investment,one must consider

Accepted Answer

A)  the current market price. 
B)  the expected capital gain. 
C)  the expected dividend income. 
D)  one's investment goals. 
E)  all of the above 
A)  the current market price. 
B)  the expected capital gain. 
C)  the expected dividend income. 
D)  one's investment goals. 
E)  all of the above

Question 19

The Smith family owns 200 shares of Elta stock.The company declared a 5% stock dividend.The Smiths now own

Accepted Answer

A)  200 shares. 
B)  205 shares. 
C)  210 shares. 
D)  420 shares. 
E)  410 shares. 
A)  200 shares. 
B)  205 shares. 
C)  210 shares. 
D)  420 shares. 
E)  410 shares.

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

Advantages of a dividend reinvestment plan can include

Calculate the earnings per share of a company with the following information? (Show all work.)

Companies whose earnings have increased at an above-average level over the recent past are called

An investment is acceptable if the expected rate of return is greater than the desired rate of return.

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 growth stock would be expected to pay a [high | low] level of dividends.

Low price/earnings ratios indicate limited or low investor confidence.

Stocks with high betas will have larger price gains but lower price declines than those with low betas.

The best returns in the stock market will be achieved by

A beta of more than one would be expected of a speculative stock.

A stocks beta is an indication of its relationship to the general market.

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. -Tech stocks are nearly always [speculative | growth | speculative or growth] stocks.

____ stocks are really purchased as a gamble rather then because they have a proven history of good performance.

If the current price of an investment increases,the investment's annual yield will decrease.

A bond is quoted as 6 ¹/₂ 05.The bondholder would receive ____ interest per year.ions?

When interest rates rise,bond prices 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. -The usual face value of a corporate bond is [$1,000 | $500].

To most stockholders,the main advantages of common stock investment are

When evaluating a stock as a possible investment,one must consider

The Smith family owns 200 shares of Elta stock.The company declared a 5% stock dividend.The Smiths now own

Risk and return are ____ related.

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

Advantages of a dividend reinvestment plan can include

Calculate the earnings per share of a company with the following information? (Show all work.)

Companies whose earnings have increased at an above-average level over the recent past are called

An investment is acceptable if the expected rate of return is greater than the desired rate of return.

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 growth stock would be expected to pay a [high | low] level of dividends.

Low price/earnings ratios indicate limited or low investor confidence.

Stocks with high betas will have larger price gains but lower price declines than those with low betas.

The best returns in the stock market will be achieved by

A beta of more than one would be expected of a speculative stock.

A stocks beta is an indication of its relationship to the general market.

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. -Tech stocks are nearly always [speculative | growth | speculative or growth] stocks.

____ stocks are really purchased as a gamble rather then because they have a proven history of good performance.

If the current price of an investment increases,the investment's annual yield will decrease.

A bond is quoted as 6 ¹/₂ 05.The bondholder would receive ____ interest per year.ions?

When interest rates rise,bond prices 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. -The usual face value of a corporate bond is [$1,000 | $500].

To most stockholders,the main advantages of common stock investment are

When evaluating a stock as a possible investment,one must consider

The Smith family owns 200 shares of Elta stock.The company declared a 5% stock dividend.The Smiths now own

Risk and return are ____ related.

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