Question 1

Publicly traded issues are only available to qualified investors.

Accepted Answer

A) True 
 B)False

Question 2

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The lower a stock's beta,the [less | more] volatile you can expect its price fluctuations to be.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 3

A bond may sell

Accepted Answer

A) at par value. 
B) below par value. 
C) above par value. 
D) any of these. 
E) none of these. 
A) at par value. 
B) below par value. 
C) above par value. 
D) any of these. 
E) none of these.

Question 4

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The usual face value of a corporate bond is [$1,000 | $500].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 5

John and Mary Smith own 500 shares of ABE stock.After the company pays a 6 percent stock dividend,John and Mary will own 530 shares of ABE stock.

Accepted Answer

A) True 
 B)False

Question 6

In which of the following types 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 7

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-You are looking for a relatively steady stream of income with some potential for growth; you should invest in [income stocks | growth stocks].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

Zero coupon bonds are issued by

Accepted Answer

A) federal agencies. 
B) municipalities. 
C) corporations. 
D) all of these. 
E) b and c only. 
A) federal agencies. 
B) municipalities. 
C) corporations. 
D) all of these. 
E) b and c only.

Question 9

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The stock market as a whole has a beta of [+1.0 | ?1.0].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

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 11

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Municipal bonds are exempt from [income tax | capital gains tax].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 12

A bond with an S&P rating of BBB is considered investment-grade.

Accepted Answer

A) True 
 B)False

Question 13

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-You are looking for a guaranteed steady stream of income; you should invest in [stocks | bonds].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 14

Earnings per share can be defined as the return earned on behalf of each share of common and preferred stock,calculated by dividing all earnings by the total number of shares outstanding.

Accepted Answer

A) True 
 B)False

Question 15

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Stock dividends represent [taxable | nontaxable] income.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The issuer of your corporate bond has the right to retire it before maturity.You have a [callable | retireable] bond.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

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

Accepted Answer

A) Business 
B) Financial 
C) Market 
D) Purchasing power 
E) Interest rate 
A) Business 
B) Financial 
C) Market 
D) Purchasing power 
E) Interest rate

Question 18

From an equityholder's perspective,the firm's overall profitability is measured by

Accepted Answer

A) book value. 
B) return on equity. 
C) market value. 
D) net profit margin. 
E) beta. 
A) book value. 
B) return on equity. 
C) market value. 
D) net profit margin. 
E) beta.

Question 19

Bonds are issued by

Accepted Answer

A) corporations and federal, state, and local governments. 
B) state and local governments and partnerships. 
C) corporations and partnerships. 
D) Moody's and Standard & Poor's. 
E) none of these. 
A) corporations and federal, state, and local governments. 
B) state and local governments and partnerships. 
C) corporations and partnerships. 
D) Moody's and Standard & Poor's. 
E) none of these.

Question 20

Income stocks are similar to bonds in that they pay annual interest to owners.

Accepted Answer

A) True 
 B)False

Publicly traded issues are only available to qualified investors.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The lower a stock's beta,the [less | more] volatile you can expect its price fluctuations to be.

A bond may sell

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The usual face value of a corporate bond is [$1,000 | $500].

John and Mary Smith own 500 shares of ABE stock.After the company pays a 6 percent stock dividend,John and Mary will own 530 shares of ABE stock.

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

Zero coupon bonds are issued by

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The stock market as a whole has a beta of [+1.0 | ?1.0].

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Municipal bonds are exempt from [income tax | capital gains tax].

A bond with an S&P rating of BBB is considered investment-grade.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You are looking for a guaranteed steady stream of income; you should invest in [stocks | bonds].

Earnings per share can be defined as the return earned on behalf of each share of common and preferred stock,calculated by dividing all earnings by the total number of shares outstanding.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Stock dividends represent [taxable | nontaxable] income.

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

From an equityholder's perspective,the firm's overall profitability is measured by

Bonds are issued by

Income stocks are similar to bonds in that they pay annual interest to owners.

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

Publicly traded issues are only available to qualified investors.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The lower a stock's beta,the [less | more] volatile you can expect its price fluctuations to be.

A bond may sell

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The usual face value of a corporate bond is [$1,000 | $500].

John and Mary Smith own 500 shares of ABE stock.After the company pays a 6 percent stock dividend,John and Mary will own 530 shares of ABE stock.

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

Zero coupon bonds are issued by

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The stock market as a whole has a beta of [+1.0 | ?1.0].

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Municipal bonds are exempt from [income tax | capital gains tax].

A bond with an S&P rating of BBB is considered investment-grade.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You are looking for a guaranteed steady stream of income; you should invest in [stocks | bonds].

Earnings per share can be defined as the return earned on behalf of each share of common and preferred stock,calculated by dividing all earnings by the total number of shares outstanding.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Stock dividends represent [taxable | nontaxable] income.

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

From an equityholder's perspective,the firm's overall profitability is measured by

Bonds are issued by

Income stocks are similar to bonds in that they pay annual interest to owners.

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