Exam 13: Investing Fundamentals

Chris O'Donnell is thinking about investing in an investment that is high-risk in the hopes of earning a relatively large profit in a short amount of time.Which investment is he most likely considering?

The amount of time that your investments have to work for you is an important factor when managing your investment portfolio.

Which one of the following would not be considered a safe investment for a conservative investor?

Which newspaper is one of the most readily available sources of information for the average investor?

A good rule of thumb is to limit consumer credit payments to no more than ____________ percent of your net (after tax)income.

After Christmas is over,Ted Riley works hard to control his expenses in February so that he can make an extra payment into a mutual fund.Which suggestion for obtaining the money needs for investing is he following?

The maximum dollar amount that can be borrowed using the cash advance provision on a credit card is called the:

Bondholders normally receive interest payments every _____months.

An emergency fund is an amount of money that can be obtained quickly in case of immediate need.

Typical asset classes used for diversification include all of the following except:

Which one of these is not an example of systematic risk?

Which one of the following investments offers the greatest liquidity?

Lester McCann wants to invest but is worried about risk.In particular,he is worried that the money he invests today will not buy as much ten years from now.What type of risk concerns Lester?

Potential investors should not wait until their financial affairs are in good shape before starting an investment program.

Bob McDowell is thinking about buying an investment.The most important consideration when making this investment is the location of the investment.What investment is Bob thinking about purchasing?

The average credit card debt for undergraduate college students is:

Once you have developed an investment program,there is no need for continued evaluation of it.

Which one of the following is a true statement?

List the sources of investment information that investors can use to evaluate a potential investment.

Younger investors tend to invest a large percentage of their nest egg in growth-oriented investments.