Question 1

Recovery of principal and capital gain are elements of total return.

Accepted Answer

A) True 
 B)False

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Long term [low | high] bond interest payments are subject to purchasing power risk.

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 3

Stocks whose price movements who tend to follow the business cycle are called

Accepted Answer

A)  cyclical stocks 
B)  defensive stocks 
C)  speculative stocks 
D)  income stocks 
E)  tech stocks 
A)  cyclical stocks 
B)  defensive stocks 
C)  speculative stocks 
D)  income stocks 
E)  tech stocks

Question 4

Dividend Reinvestment Plans provide shareholders with cash,so that they can invest in similar stocks.

Accepted Answer

A) True 
 B)False

Question 5

U-Need-This has $12 million liabilities,$12 million preferred stock,10 million shares of common stock outstanding,and $39 million in total assets.The book value is

Accepted Answer

A)  $2.00 per share. 
B)  $4.30 per share. 
C)  $4.10 per share. 
D)  $1.50 per share. 
E)  none of the above. 
A)  $2.00 per share. 
B)  $4.30 per share. 
C)  $4.10 per share. 
D)  $1.50 per share. 
E)  none of the above.

Question 6

Calculate the approximate yield on the common stock of Bowl Game that Matty Smelt has owned for 4 years.She bought it for $10 per share and sold it for $25.The dividend was $1.50 each year.

Accepted Answer

The answer of Calculate the approximate yield on the common...

Question 7

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[Raising | Lowering] a bond rating will result in higher current yields.

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 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Stocks of stable,older companies are called [earnings | blue chip] stocks.

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

Sunshine Mining Bonds have a $1,000 face value,pay $95 annual interest,mature in 2004,and are currently quoted at $1,302.50.The coupon rate of interest is

Accepted Answer

A)  8.500%. 
B)  9.500%. 
C)  13.025%. 
D)  13.052%. 
E)  can't tell from the information given. 
A)  8.500%. 
B)  9.500%. 
C)  13.025%. 
D)  13.052%. 
E)  can't tell from the information given.

Question 10

Common stocks pay a guaranteed dividend each year.

Accepted Answer

A) True 
 B)False

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Dividend income is taxed [as ordinary income | at capital gains rates].

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 12

A characteristic of defensive stocks is

Accepted Answer

A)  income. 
B)  steady earnings. 
C)  steady dividends. 
D)  growth. 
E)  price stability in economic decline. 
A)  income. 
B)  steady earnings. 
C)  steady dividends. 
D)  growth. 
E)  price stability in economic decline.

Question 13

If the current price of an investment increases,the investment's annual yield will decrease.

Accepted Answer

A) True 
 B)False

Question 14

Bondholders will receive interest payments after the stockholders receive dividends.

Accepted Answer

A) True 
 B)False

Question 15

John Smith is in the 28 percent tax bracket.If he were to purchase a $1,000 municipal bond that had a stated interest rate of 6.9%,the taxable equivalent yield would be

Accepted Answer

A)  6.900%. 
B)  8.261%. 
C)  9.583%. 
D)  12.105%. 
E)  14.625%. 
A)  6.900%. 
B)  8.261%. 
C)  9.583%. 
D)  12.105%. 
E)  14.625%.

Question 16

Changes in the value of securities due to social,political,or economic factors are referred to as market risk.

Accepted Answer

A) True 
 B)False

Question 17

A bond with a yield to maturity that equaled or exceeded an investor's desired rate of return is considered an attractive investment.

Accepted Answer

A) True 
 B)False

Question 18

A stocks beta is an indication of its relationship to the general market.

Accepted Answer

A) True 
 B)False

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Most purchasers of [Treasury | municipal] bonds invest in them because of their tax-free interest.

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 20

The approximate yield to maturity when the average income is $3.00,the average capital gain is $6.00,the average investment is $27.00,and the investment is held for 3 years is

Accepted Answer

A)  11 percent. 
B)  33 percent. 
C)  27 percent. 
D)  21 percent. 
E)  50 percent. 
A)  11 percent. 
B)  33 percent. 
C)  27 percent. 
D)  21 percent. 
E)  50 percent.

Recovery of principal and capital gain are elements of total return.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Long term [low | high] bond interest payments are subject to purchasing power risk.

Stocks whose price movements who tend to follow the business cycle are called

Dividend Reinvestment Plans provide shareholders with cash,so that they can invest in similar stocks.

U-Need-This has $12 million liabilities,$12 million preferred stock,10 million shares of common stock outstanding,and $39 million in total assets.The book value is

Calculate the approximate yield on the common stock of Bowl Game that Matty Smelt has owned for 4 years.She bought it for $10 per share and sold it for $25.The dividend was $1.50 each year.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Raising | Lowering] a bond rating will result in higher current yields.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Stocks of stable,older companies are called [earnings | blue chip] stocks.

Sunshine Mining Bonds have a $1,000 face value,pay $95 annual interest,mature in 2004,and are currently quoted at $1,302.50.The coupon rate of interest is

Common stocks pay a guaranteed dividend each year.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Dividend income is taxed [as ordinary income | at capital gains rates].

A characteristic of defensive stocks is

If the current price of an investment increases,the investment's annual yield will decrease.

Bondholders will receive interest payments after the stockholders receive dividends.

John Smith is in the 28 percent tax bracket.If he were to purchase a $1,000 municipal bond that had a stated interest rate of 6.9%,the taxable equivalent yield would be

Changes in the value of securities due to social,political,or economic factors are referred to as market risk.

A bond with a yield to maturity that equaled or exceeded an investor's desired rate of return is considered an attractive investment.

A stocks beta is an indication of its relationship to the general market.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Most purchasers of [Treasury | municipal] bonds invest in them because of their tax-free interest.

The approximate yield to maturity when the average income is $3.00,the average capital gain is $6.00,the average investment is $27.00,and the investment is held for 3 years is

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

Filters

Exam 12: Investing in Stocks and Bonds

Recovery of principal and capital gain are elements of total return.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Long term [low | high] bond interest payments are subject to purchasing power risk.

Stocks whose price movements who tend to follow the business cycle are called

Dividend Reinvestment Plans provide shareholders with cash,so that they can invest in similar stocks.

U-Need-This has $12 million liabilities,$12 million preferred stock,10 million shares of common stock outstanding,and $39 million in total assets.The book value is

Calculate the approximate yield on the common stock of Bowl Game that Matty Smelt has owned for 4 years.She bought it for $10 per share and sold it for $25.The dividend was $1.50 each year.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Raising | Lowering] a bond rating will result in higher current yields.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Stocks of stable,older companies are called [earnings | blue chip] stocks.

Sunshine Mining Bonds have a $1,000 face value,pay $95 annual interest,mature in 2004,and are currently quoted at $1,302.50.The coupon rate of interest is

Common stocks pay a guaranteed dividend each year.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Dividend income is taxed [as ordinary income | at capital gains rates].

A characteristic of defensive stocks is

If the current price of an investment increases,the investment's annual yield will decrease.

Bondholders will receive interest payments after the stockholders receive dividends.

John Smith is in the 28 percent tax bracket.If he were to purchase a $1,000 municipal bond that had a stated interest rate of 6.9%,the taxable equivalent yield would be

Changes in the value of securities due to social,political,or economic factors are referred to as market risk.

A bond with a yield to maturity that equaled or exceeded an investor's desired rate of return is considered an attractive investment.

A stocks beta is an indication of its relationship to the general market.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Most purchasers of [Treasury | municipal] bonds invest in them because of their tax-free interest.

The approximate yield to maturity when the average income is $3.00,the average capital gain is $6.00,the average investment is $27.00,and the investment is held for 3 years is

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

Filters