Question 1

Stock dividends are taxed at Long Term Capital Gains Rates.

Accepted Answer

A) True 
 B)False

Question 2

Compound interest is a very important concept when evaluating the return on an investment you plan to hold for a long time.

Accepted Answer

A) True 
 B)False

Question 3

Only the federal government issues zero coupon bonds.

Accepted Answer

A) True 
 B)False

Question 4

Monte Jackson is considering the purchase of XYZ stock and would like to estimate its approximate yield if he holds it 5 years.The current price is $20 and Monte expects it would rise to $30 over the 5-year holding period.The expected dividend is $1.00 each year.

Accepted Answer

The answer of Monte Jackson is considering the purchase of...

Question 5

Cash dividends on common stock are most often paid

Accepted Answer

A)  weekly 
B)  monthly 
C)  quarterly 
D)  semi-annually 
E)  annually 
A)  weekly 
B)  monthly 
C)  quarterly 
D)  semi-annually 
E)  annually

Question 6

When a bond is sold between coupon payment dates,the buyer pays the seller for the accrued interest.

Accepted Answer

A) True 
 B)False

Question 7

A beta of more than one would be expected of a speculative stock.

Accepted Answer

A) True 
 B)False

Question 8

Bonds provide for investment return primarily in the form of growth.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following types of risk affect owners of fixed income securities more than owners of equity securities

Accepted Answer

A)  business risk 
B)  financial risk 
C)  market risk 
D)  purchasing power risk 
E)  none of the above 
A)  business risk 
B)  financial risk 
C)  market risk 
D)  purchasing power risk 
E)  none of the above

Question 10

A convertible bond is usually a

Accepted Answer

A)  government bond. 
B)  participating bond. 
C)  debenture. 
D)  mortgage bond. 
E)  junk bond. 
A)  government bond. 
B)  participating bond. 
C)  debenture. 
D)  mortgage bond. 
E)  junk bond.

Question 11

In which of the following type of investment is the most liquidity risk?

Accepted Answer

A)  Common stock 
B)  Corporate bonds 
C)  Treasury bonds 
D)  Land 
E)  Mutual fund shares 
A)  Common stock 
B)  Corporate bonds 
C)  Treasury bonds 
D)  Land 
E)  Mutual fund shares

Question 12

Investors typically welcome their bonds being called because of the generous call premium paid.

Accepted Answer

A) True 
 B)False

Question 13

Market risk is often measured using

Accepted Answer

A)  the price/earnings ratio. 
B)  the dividend yield. 
C)  alpha. 
D)  beta. 
E)  none of these. 
A)  the price/earnings ratio. 
B)  the dividend yield. 
C)  alpha. 
D)  beta. 
E)  none of these.

Question 14

Common stockholders are considered to be the residual owners of the company.

Accepted Answer

A) True 
 B)False

Question 15

Zero-coupon bonds are issued by

Accepted Answer

A)  the federal government. 
B)  municipalities. 
C)  corporations. 
D)  all of the above. 
E)  b and c only. 
A)  the federal government. 
B)  municipalities. 
C)  corporations. 
D)  all of the above. 
E)  b and c only.

Question 16

Total investment return can be approximated using the current yield.

Accepted Answer

A) True 
 B)False

Question 17

Bonds rated AA by S&P and Aa by Moody's would be investment quality.

Accepted Answer

A) True 
 B)False

Question 18

Bond return can include both interest and capital gains.

Accepted Answer

A) True 
 B)False

Question 19

Bond prices and current interest rates are ____ related.

Accepted Answer

A)  inversely 
B)  directly 
C)  slightly 
D)  positively 
E)  none of the above 
A)  inversely 
B)  directly 
C)  slightly 
D)  positively 
E)  none of the above

Question 20

You received a stock dividend this year instead of cash.This is taxable income.

Accepted Answer

A) True 
 B)False

Stock dividends are taxed at Long Term Capital Gains Rates.

Compound interest is a very important concept when evaluating the return on an investment you plan to hold for a long time.

Only the federal government issues zero coupon bonds.

Monte Jackson is considering the purchase of XYZ stock and would like to estimate its approximate yield if he holds it 5 years.The current price is $20 and Monte expects it would rise to $30 over the 5-year holding period.The expected dividend is $1.00 each year.

Cash dividends on common stock are most often paid

When a bond is sold between coupon payment dates,the buyer pays the seller for the accrued interest.

A beta of more than one would be expected of a speculative stock.

Bonds provide for investment return primarily in the form of growth.

Which of the following types of risk affect owners of fixed income securities more than owners of equity securities

A convertible bond is usually a

In which of the following type of investment is the most liquidity risk?

Investors typically welcome their bonds being called because of the generous call premium paid.

Market risk is often measured using

Common stockholders are considered to be the residual owners of the company.

Zero-coupon bonds are issued by

Total investment return can be approximated using the current yield.

Bonds rated AA by S&P and Aa by Moody's would be investment quality.

Bond return can include both interest and capital gains.

Bond prices and current interest rates are ____ related.

You received a stock dividend this year instead of cash.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

Filters

Exam 12: Investing in Stocks and Bonds

Stock dividends are taxed at Long Term Capital Gains Rates.

Compound interest is a very important concept when evaluating the return on an investment you plan to hold for a long time.

Only the federal government issues zero coupon bonds.

Monte Jackson is considering the purchase of XYZ stock and would like to estimate its approximate yield if he holds it 5 years.The current price is $20 and Monte expects it would rise to $30 over the 5-year holding period.The expected dividend is $1.00 each year.

Cash dividends on common stock are most often paid

When a bond is sold between coupon payment dates,the buyer pays the seller for the accrued interest.

A beta of more than one would be expected of a speculative stock.

Bonds provide for investment return primarily in the form of growth.

Which of the following types of risk affect owners of fixed income securities more than owners of equity securities

A convertible bond is usually a

In which of the following type of investment is the most liquidity risk?

Investors typically welcome their bonds being called because of the generous call premium paid.

Market risk is often measured using

Common stockholders are considered to be the residual owners of the company.

Zero-coupon bonds are issued by

Total investment return can be approximated using the current yield.

Bonds rated AA by S&P and Aa by Moody's would be investment quality.

Bond return can include both interest and capital gains.

Bond prices and current interest rates are ____ related.

You received a stock dividend this year instead of cash.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

Filters