Exam 10: Personal Investing - Investing Fundamentals

If you have $3000 to invest,but could need the money at any time in the next year,you should

Which is True about dividends?

For someone whose salary is $120 000,what type of investment income receives the lowest tax consequences?

If you purchase 100 shares of Ajax Corporation for $15 a share and one year later sell it for $20 a share,what was your return if the stock paid $2 per share dividends? (Ignore commissions and trading fees.Round to the nearest whole percent. )

The higher the dividend paid by a firm,the lower its potential stock price appreciation.

You can reduce your investment risk most effectively through

Real estate returns can be in the form of

When the Blackberry share price fell due to disappointment after the launch of their new phone,that is an example of systematic risk.

Of the following,which is not used in measuring a stock's return?

Last year you held the following investments: $50 000 in bonds,which earned 5.5 percent last year $5000 in shares of Moose Pasture Minerals,which lost 22 percent last year $10 000 in shares of Amalgamated Monkey Nuts,which earned 12 percent last year $20 000 in Offshore Diversification Mutual Fund,which earned 8 percent last year $15 000 in XIU exchange-traded fund,and the TSX was up 11 percent last year Show how you determine the return on the portfolio for last year,and what it is worth now?

A stock with larger standard deviations of returns has higher risk than a stock with lower standard deviations.

One of the advantages of investing in bonds is that their value is guaranteed and they pay predictable interest (coupon)payments.

Explain how it is possible to add more risky assets to a portfolio and reduce the overall risk.Give a specific example of how this could be done for a conservative portfolio.

The market for newly issued securities and initial public offerings (IPOs)is the

How much more will you earn on a lump sum investment of $20 000 if you increase your risk tolerance to improve your return from 6 percent to 8 percent over a 20-year period?

Amalgamated Monkey Nuts Inc.has a range of returns between 4 percent and 7 percent while Moose Pasture Minerals Ltd.has a range of returns between 3 percent and 10 percent.This means

Because dividends on preferred shares are fixed,the price is not as volatile as those of common stock.

Which of the following is a good example of systematic risk?

Stocks that provide investors with periodic income in the form of large dividends are called

Given the bank rate of 3 percent,purchasing an investment with a 9 percent risk premium means