Exam 12: Investing in Stocks and Bonds

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The longer money is not invested during the best months,the [higher | lower] is the percent return.

(Multiple Choice)

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Question 21

Advantages of common stock investments include

(Multiple Choice)

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Question 22

Companies whose earnings have increased at an above-average level over the recent past are called

(Multiple Choice)

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Question 23

The risk free rate of return is often measured by the return on US Treasury Bills.

(True/False)

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Question 24

A bond priced at 89 8/32.What is its price?

(Multiple Choice)

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Question 25

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The [lower | higher] a bond's rating,the more likely the issuer will default.

(Multiple Choice)

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Question 26

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -By holding stock in 5 companies,you are reducing [market | business] risk.

(Multiple Choice)

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Question 27

Which of the following statements about preferred stock is true?

(Multiple Choice)

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Question 28

____ risk results from the behavior of investors in the securities market

(Multiple Choice)

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Question 29

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Preferred stockholders will receive their share of company earnings [before | after] bond interest is paid.

(Multiple Choice)

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Question 30

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Tech stocks are nearly always [speculative | growth | speculative or growth] stocks.

(Multiple Choice)

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Question 31

Interest rate risk is greater for long-term bonds than for short-term bonds.

(True/False)

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Question 32

Purchasing power risk is of most concern during economic recession.

(True/False)

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Question 33

A bond is quoted as Lging 8 07 with a close of 106.Which of the following statements are true about this bond?

(Multiple Choice)

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Question 34

Security investors incur varying degrees of risk.Business risk is related to

(Multiple Choice)

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Question 35

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Market | Business] risk results from the behavior of investors that may cause security prices to fluctuate.

(Multiple Choice)

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Question 36

In most investments,there is a risk-return tradeoff.

(True/False)

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Question 37

If you buy a zero coupon bond,you will receive no cash from the corporation until the bond matures.

(True/False)

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Question 38

The returns you would expect from your investments could be

(Multiple Choice)

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Question 39

You received a cash dividend from your stock investment this year.This is taxable income.

(True/False)

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Question 40

Showing 21 - 40 of 194

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The longer money is not invested during the best months,the [higher | lower] is the percent return.

Advantages of common stock investments include

Companies whose earnings have increased at an above-average level over the recent past are called

The risk free rate of return is often measured by the return on US Treasury Bills.

A bond priced at 89 8/32.What is its price?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The [lower | higher] a bond's rating,the more likely the issuer will default.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -By holding stock in 5 companies,you are reducing [market | business] risk.

Which of the following statements about preferred stock is true?

____ risk results from the behavior of investors in the securities market

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Preferred stockholders will receive their share of company earnings [before | after] bond interest is paid.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Tech stocks are nearly always [speculative | growth | speculative or growth] stocks.

Interest rate risk is greater for long-term bonds than for short-term bonds.

Purchasing power risk is of most concern during economic recession.

A bond is quoted as Lging 8 07 with a close of 106.Which of the following statements are true about this bond?

Security investors incur varying degrees of risk.Business risk is related to

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Market | Business] risk results from the behavior of investors that may cause security prices to fluctuate.

In most investments,there is a risk-return tradeoff.

If you buy a zero coupon bond,you will receive no cash from the corporation until the bond matures.

The returns you would expect from your investments could be

You received a cash dividend from your stock investment this year.This is taxable income.

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

Investment Planning

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

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