Exam 13: Investing Fundamentals

Terry Hamilton has just received $30,000 from an uncle who died and is trying to decide how to invest it.She has done some research has decided that about 30% of the money should go into large cap stocks,20% into medium cap stocks,15% into small cap stocks,10% into bonds,10% into foreign stock,and 15% into cash.She thinks that even if one area does not do that well,the rest will so that her overall return will be pretty good.What aspect of investing is Terry most concerned about?

Gina Davidson has received $50,000 in a divorce settlement and is trying to decide how to invest it.She has looked at stocks but knows that some stocks have lost a lot of value for their owners recently.What aspect of investing is she most concerned about?

Jack Masters earns $40,000 a year.His monthly expenses total $2,100.What is the minimum amount of money that Mr.Masters should set aside in an emergency fund?

Which one of the following is a true statement?

Although useful for many things,the Internet cannot be used to monitor the value of stock,bond,and mutual fund investments.

An intermediate-term investment objective is defined as one that will be accomplished within a period of:

The money obtained by a company from selling corporate bonds:

Audrey is thinking about an investment that involves buying a written pledge by a corporation to repay a specified amount of money.It also pays interest every 6 months until it matures.What investment is Audrey thinking about purchasing?

Which one of the following statements is true?

For an investor who wants to speculate,which of the following investments would be appropriate?

Which one of the following is not a warning sign that you might be getting into credit card trouble?

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

Which one of the following is not a business periodical?

Which of the following is a true statement?

Standard & Poor's and Value Line are companies that would be examples of:

Which one of the following individuals should have a higher tolerance for risk?

Which of the following statements is true?

Over the past 50 years,stocks and U.S.government bonds have returned about the same rate of return.

After the death of her husband,Gina Baker,35,received a check for $350,000 from a life insurance company.Gina has two small children and wants to make sure that both she and the children are taken care of in the future.Based on this information,which of the investment factors listed below would be the most important to Gina in her investment program?

Once you have painstakingly developed a financial plan,it is unwise to change it.