Question 1

The single most important reason for investing is for

Accepted Answer

A)  home purchase down payment 
B)  auto purchase down payment 
C)  retirement 
D)  college fund 
E)  ensuring a sufficient emergency fund 
A)  home purchase down payment 
B)  auto purchase down payment 
C)  retirement 
D)  college fund 
E)  ensuring a sufficient emergency fund C

Question 2

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 included several reforms aimed at reforming banks and insurance companies.

Accepted Answer

A) True 
 B)False  False

Question 3

A diversified securities portfolio is characterized by

Accepted Answer

A)  dissimilar risk and return characteristics of the securities. 
B)  concentrating on a single industry. 
C)  minimal loss potential. 
D)  stable earnings. 
E)  formula timing. 
A)  dissimilar risk and return characteristics of the securities. 
B)  concentrating on a single industry. 
C)  minimal loss potential. 
D)  stable earnings. 
E)  formula timing. A

Question 4

The SEC requires corporations to issue ____ describing the firm and the security issue it wishes to sell.

Accepted Answer

A)  an advertisement 
B)  a prospectus 
C)  an underwriting journal 
D)  a dealer newsletter 
E)  none of these 
A)  an advertisement 
B)  a prospectus 
C)  an underwriting journal 
D)  a dealer newsletter 
E)  none of these

Question 5

There is a trade-off between earning a high current income from an investment and obtaining significant capital appreciation from it.

Accepted Answer

A) True 
 B)False

Question 6

You have inherited $250,000.You have decided that since you don't need the money currently,you should invest for the long-term.After seeking advice,you decide on an asset allocation plan that puts 10% in short-term securities,75% in equities,and 15% in bond funds.How much money would you put in each category?

Accepted Answer

The answer of You have inherited $250,000.You have decided that...

Question 7

Discount brokers discount the price of securities to below the prevailing market price.

Accepted Answer

A) True 
 B)False

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Diversification should [reduce the possibility of losing all your money | have little impact on the risk of losing money].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Ownership in a corporation would be represented by [stock | bonds].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 10

A retired couple can probably bear more risk in their portfolio than a young investor with a secure job.

Accepted Answer

A) True 
 B)False

Question 11

Instructing your broker to buy or sell a stock at a particular price is a

Accepted Answer

A)  limit order. 
B)  market order. 
C)  margin order. 
D)  regular order. 
E)  stop order. 
A)  limit order. 
B)  market order. 
C)  margin order. 
D)  regular order. 
E)  stop order.

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-You would expect to receive an annual dividend of [$0.16 | $0.70] per share.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 13

When you buy 300 shares of a company you have purchased

Accepted Answer

A)  an odd lot. 
B)  a round lot. 
C)  both an odd lot and a round lot. 
D)  a combined lot. 
E)  none of these. 
A)  an odd lot. 
B)  a round lot. 
C)  both an odd lot and a round lot. 
D)  a combined lot. 
E)  none of these.

Question 14

The term "investment' refers to money placed in some medium where value and level of return are totally unpredictable.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

A portfolio is a collection of investment assets assembled to meet your investment objectives.

Accepted Answer

A) True 
 B)False

Question 17

The total return of a portfolio is influenced far more by specific security selection than asset allocation.

Accepted Answer

A) True 
 B)False

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The first thing you need to determine in order to reach an investment goal is the [rate of return you can receive | the amount of money you need to set aside periodically].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 19

The most widely followed stock average is the

Accepted Answer

A)  Dow Jones Industrial Average. 
B)  Standard & Poor's Index. 
C)  New York Stock Exchange Index. 
D)  American Stock Exchange Index. 
E)  Wall Street Journal Index. 
A)  Dow Jones Industrial Average. 
B)  Standard & Poor's Index. 
C)  New York Stock Exchange Index. 
D)  American Stock Exchange Index. 
E)  Wall Street Journal Index.

Question 20

How much would it cost to purchase a round lot (the smallest number you can get and still be a round lot)of Stock A at the closing price for the day?

Accepted Answer

A)  $ 790 
B)  $ 1,950 
C)  $ 2,960 
D)  $19,500 
E)  $29,600 
A)  $ 790 
B)  $ 1,950 
C)  $ 2,960 
D)  $19,500 
E)  $29,600

The single most important reason for investing is for

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 included several reforms aimed at reforming banks and insurance companies.

A diversified securities portfolio is characterized by

The SEC requires corporations to issue ____ describing the firm and the security issue it wishes to sell.

There is a trade-off between earning a high current income from an investment and obtaining significant capital appreciation from it.

Discount brokers discount the price of securities to below the prevailing market price.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Diversification should [reduce the possibility of losing all your money | have little impact on the risk of losing money].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Ownership in a corporation would be represented by [stock | bonds].

A retired couple can probably bear more risk in their portfolio than a young investor with a secure job.

Instructing your broker to buy or sell a stock at a particular price is a

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You would expect to receive an annual dividend of [$0.16 | $0.70] per share.

When you buy 300 shares of a company you have purchased

The term "investment' refers to money placed in some medium where value and level of return are totally unpredictable.

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.

A portfolio is a collection of investment assets assembled to meet your investment objectives.

The total return of a portfolio is influenced far more by specific security selection than asset allocation.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The first thing you need to determine in order to reach an investment goal is the [rate of return you can receive | the amount of money you need to set aside periodically].

The most widely followed stock average is the

How much would it cost to purchase a round lot (the smallest number you can get and still be a round lot)of Stock A at the closing price for the day?

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

Planning for Retirement

Preserving Your Estate

Filters

Exam 11: Investment Planning

The single most important reason for investing is for

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 included several reforms aimed at reforming banks and insurance companies.

A diversified securities portfolio is characterized by

The SEC requires corporations to issue ____ describing the firm and the security issue it wishes to sell.

There is a trade-off between earning a high current income from an investment and obtaining significant capital appreciation from it.

Discount brokers discount the price of securities to below the prevailing market price.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Diversification should [reduce the possibility of losing all your money | have little impact on the risk of losing money].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Ownership in a corporation would be represented by [stock | bonds].

A retired couple can probably bear more risk in their portfolio than a young investor with a secure job.

Instructing your broker to buy or sell a stock at a particular price is a

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You would expect to receive an annual dividend of [$0.16 | $0.70] per share.

When you buy 300 shares of a company you have purchased

The term "investment' refers to money placed in some medium where value and level of return are totally unpredictable.

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.

A portfolio is a collection of investment assets assembled to meet your investment objectives.

The total return of a portfolio is influenced far more by specific security selection than asset allocation.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The first thing you need to determine in order to reach an investment goal is the [rate of return you can receive | the amount of money you need to set aside periodically].

The most widely followed stock average is the

How much would it cost to purchase a round lot (the smallest number you can get and still be a round lot)of Stock A at the closing price for the day?

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

Planning for Retirement

Preserving Your Estate

Filters