Question 1

_____ is a short-term investment activity.

Accepted Answer

A) Buying life insurance 
B) Buying real estate 
C) Speculating in common stock 
D) Investing in common stock 
E) Systematically saving for retirement 
A) Buying life insurance 
B) Buying real estate 
C) Speculating in common stock 
D) Investing in common stock 
E) Systematically saving for retirement C

Question 2

Your goals tend to set the tone for your investment program,and they play a major role in determining how conservative or aggressive you're likely to be in making investment decisions.

Accepted Answer

A) True 
 B)False  True

Question 3

The owner of a bond would expect to receive __________ annual income. ​

Accepted Answer

A) an increasing 
B) a steady 
C) a decreasing 
D) an erratic 
A) an increasing 
B) a steady 
C) a decreasing 
D) an erratic B

Question 4

Which of the following is a difference between an exchange traded fund (ETF)and a mutual fund?

Accepted Answer

A) An ETF is a fixed income instrument,whereas a mutual fund is a variable income instrument. 
B) An ETF can only be traded at the end of the day,whereas a mutual fund can be bought or sold throughout the trading day. 
C) An ETF provides more favorable tax treatment than a mutual fund. 
D) An ETF is a convertible security,whereas a mutual fund is a non-convertible security. 
E) An ETF is a hybrid security,whereas a mutual fund is not a hybrid security. 
A) An ETF is a fixed income instrument,whereas a mutual fund is a variable income instrument. 
B) An ETF can only be traded at the end of the day,whereas a mutual fund can be bought or sold throughout the trading day. 
C) An ETF provides more favorable tax treatment than a mutual fund. 
D) An ETF is a convertible security,whereas a mutual fund is a non-convertible security. 
E) An ETF is a hybrid security,whereas a mutual fund is not a hybrid security.

Question 5

Owning common stock represents a debt investment.

Accepted Answer

A) True 
 B)False

Question 6

Mathew had purchased 100 shares of Blue Corporation for $100 per share.Currently,the stocks of Blue Corporation are trading at $150.Which of the following is the return on Mathew's investment on one share?

Accepted Answer

A) 65% 
B) 50% 
C) 75% 
D) 80% 
E) 40% 
A) 65% 
B) 50% 
C) 75% 
D) 80% 
E) 40%

Question 7

__________ is one of the most frequent investment objectives of an individual. ​

Accepted Answer

A) Exceeding credit limit 
B) Obtaining a loan 
C) Paying more taxes 
D) Enhancing current income 
A) Exceeding credit limit 
B) Obtaining a loan 
C) Paying more taxes 
D) Enhancing current income

Question 8

Maria has invested $200,000 in mutual funds and $20,000 in bonds.The total value of her portfolio is _____.

Accepted Answer

A) $220,000 
B) $130,000 
C) $250,000 
D) $400,000 
E) $310,000 
A) $220,000 
B) $130,000 
C) $250,000 
D) $400,000 
E) $310,000

Question 9

Mike is in his late 60's and retired.He wants to maintain a portfolio of investments that will provide him a stable income.Which of the following financial instruments is the most suitable option for Mike?

Accepted Answer

A) Loans 
B) Mortgages 
C) Money market securities 
D) Bonds 
E) Stocks 
A) Loans 
B) Mortgages 
C) Money market securities 
D) Bonds 
E) Stocks

Question 10

An investor will have a better safety net in case of online trading,when compared to trading with the help of human brokers.

Accepted Answer

A) True 
 B)False

Question 11

The __________ is based on 500 different stocks. ​

Accepted Answer

A) Standard & Poor's index 
B) Dow Jones Industrial Average 
C) New York Stock Exchange index 
D) Wall Street Commercial Average 
A) Standard & Poor's index 
B) Dow Jones Industrial Average 
C) New York Stock Exchange index 
D) Wall Street Commercial Average

Question 12

_____ are senior,unsecured,unsubordinated debt securities issued by an underwriting bank.

Accepted Answer

A) Mutual funds 
B) Exchange traded notes 
C) Corporate Bonds 
D) Collateral debt obligations 
E) Treasury bills 
A) Mutual funds 
B) Exchange traded notes 
C) Corporate Bonds 
D) Collateral debt obligations 
E) Treasury bills

Question 13

The Securities Investor Protection Corporation (SIPC)provides insurance to the investor from:

Accepted Answer

A) the declining security prices. 
B) the company's failure to make dividend payments. 
C) a brokerage firm's financial failure. 
D) the loss of the marginal investment on the stock exchange. 
E) the loss of the security deposit with the broker. 
A) the declining security prices. 
B) the company's failure to make dividend payments. 
C) a brokerage firm's financial failure. 
D) the loss of the marginal investment on the stock exchange. 
E) the loss of the security deposit with the broker.

Question 14

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 percent 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? (Round the answer to the nearest whole number.)

Accepted Answer

Using a financial calculator,Monte has t

Question 15

James purchased five bonds of face value of $1,000 that paid 5 percent annual interest rate.The total annual interest income of James for each year is _____.

Accepted Answer

A) $50 
B) $175 
C) $250 
D) $100 
E) $500 
A) $50 
B) $175 
C) $250 
D) $100 
E) $500

Question 16

The Securities and Exchange Commission was established as a result of the __________. ​

Accepted Answer

A) Securities Exchange Act of 1933 
B) Securities Exchange Act of 1934 
C) Securities Exchange Commission Act of 1940 
D) Securities Exchange Investment Act of 1945 
A) Securities Exchange Act of 1933 
B) Securities Exchange Act of 1934 
C) Securities Exchange Commission Act of 1940 
D) Securities Exchange Investment Act of 1945

Question 17

You have inherited $250,000.You have decided that since you don't need the money currently,you should invest the money in order to meet future expenses.After seeking advice,you decide on an asset allocation plan that puts 10 percent in short-term securities,75 percent in equities,and 15 percent in bond funds.How much money would you put in each category? (Show all work)

Accepted Answer

Following are the am

Question 18

Which of the following characteristics of an investor should be evaluated to formulate an effective portfolio strategy?

Accepted Answer

A) Level of professional investment knowledge 
B) Social relationship with stock brokers 
C) Level and stability of income 
D) Level of Internet surfing skills 
E) Judgment skills to buy and sell securities 
A) Level of professional investment knowledge 
B) Social relationship with stock brokers 
C) Level and stability of income 
D) Level of Internet surfing skills 
E) Judgment skills to buy and sell securities

Question 19

Online trading is the only valuable investment service available through the Internet.

Accepted Answer

A) True 
 B)False

Question 20

A trade in securities exchange:

Accepted Answer

A) brings the buyer and seller together. 
B) is executed by the dealer. 
C) is arranged by an investment banker. 
D) is executed by the Securities Exchange Commission. 
E) is guaranteed by the central bank. 
A) brings the buyer and seller together. 
B) is executed by the dealer. 
C) is arranged by an investment banker. 
D) is executed by the Securities Exchange Commission. 
E) is guaranteed by the central bank.

_____ is a short-term investment activity.

Your goals tend to set the tone for your investment program,and they play a major role in determining how conservative or aggressive you're likely to be in making investment decisions.

The owner of a bond would expect to receive __________ annual income.

Which of the following is a difference between an exchange traded fund (ETF)and a mutual fund?

Owning common stock represents a debt investment.

Mathew had purchased 100 shares of Blue Corporation for $100 per share.Currently,the stocks of Blue Corporation are trading at $150.Which of the following is the return on Mathew's investment on one share?

__________ is one of the most frequent investment objectives of an individual.

Maria has invested $200,000 in mutual funds and $20,000 in bonds.The total value of her portfolio is _____.

Mike is in his late 60's and retired.He wants to maintain a portfolio of investments that will provide him a stable income.Which of the following financial instruments is the most suitable option for Mike?

An investor will have a better safety net in case of online trading,when compared to trading with the help of human brokers.

The __________ is based on 500 different stocks.

_____ are senior,unsecured,unsubordinated debt securities issued by an underwriting bank.

The Securities Investor Protection Corporation (SIPC)provides insurance to the investor from:

James purchased five bonds of face value of $1,000 that paid 5 percent annual interest rate.The total annual interest income of James for each year is _____.

The Securities and Exchange Commission was established as a result of the __________.

Which of the following characteristics of an investor should be evaluated to formulate an effective portfolio strategy?

Online trading is the only valuable investment service available through the Internet.

A trade in securities exchange:

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, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 11: Investment Planning

_____ is a short-term investment activity.

Your goals tend to set the tone for your investment program,and they play a major role in determining how conservative or aggressive you're likely to be in making investment decisions.

The owner of a bond would expect to receive __________ annual income. ​

Which of the following is a difference between an exchange traded fund (ETF)and a mutual fund?

Owning common stock represents a debt investment.

Mathew had purchased 100 shares of Blue Corporation for $100 per share.Currently,the stocks of Blue Corporation are trading at $150.Which of the following is the return on Mathew's investment on one share?

__________ is one of the most frequent investment objectives of an individual. ​

Maria has invested $200,000 in mutual funds and $20,000 in bonds.The total value of her portfolio is _____.

Mike is in his late 60's and retired.He wants to maintain a portfolio of investments that will provide him a stable income.Which of the following financial instruments is the most suitable option for Mike?

An investor will have a better safety net in case of online trading,when compared to trading with the help of human brokers.

The __________ is based on 500 different stocks. ​

_____ are senior,unsecured,unsubordinated debt securities issued by an underwriting bank.

The Securities Investor Protection Corporation (SIPC)provides insurance to the investor from:

James purchased five bonds of face value of $1,000 that paid 5 percent annual interest rate.The total annual interest income of James for each year is _____.

The Securities and Exchange Commission was established as a result of the __________. ​

Which of the following characteristics of an investor should be evaluated to formulate an effective portfolio strategy?

Online trading is the only valuable investment service available through the Internet.

A trade in securities exchange:

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, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

The owner of a bond would expect to receive __________ annual income.

__________ is one of the most frequent investment objectives of an individual.

The __________ is based on 500 different stocks.

The Securities and Exchange Commission was established as a result of the __________.