Exam 11: Investment Planning

A collection of investments is called:

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.

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 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].

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 Dow Jones Industrial Average is based on [50 large stocks | 30 large stocks].

A stock portfolio containing 80% common stocks is most likely to be appropriate for:

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. -An order to buy or sell a security at the best price available at the time the order is received is a [market | limit] order.

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 majority of the securities laws were enacted [before | after] 1930.

Which of the following was not an intention of The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010?

A systematic investment routine involves investing similar sums in regular intervals.

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. -Exchange traded funds face the risk of [market fluctuations | default].

A limit order may be used either to buy or to sell.

An annual stockholder report will contain audited financial statements of the company.

Diversification of investments increases risk.

A retail stockbroker buys and sells securities on behalf of clients.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 is designed primarily to improve accountability and transparency in the U.S.financial system.

Monte wants to save for his daughter's college education.He would like to have $85,000 in 15 years.If Monte can earn an average of 8.5% on this fund,how much would he need to deposit in the account today to meet his goal? If Monte has no money to set aside now but wants to save at the end of each month for this goal,how much would he need to add to the account each month?

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. -In terms of market capitalization,[Apple | IBM] is the biggest company in the world.

The over-the-counter (OTC)market deals in small,unlisted securities.

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

In addition to a description of any investments owned,the worksheet listing your investments should include: