Exam 12: Investing in Stocks and Bonds

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. -Dividends and earnings per share [refer | do not refer] to the same thing.

(Short Answer)

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Question 21

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. -By holding stock in 5 companies,you are reducing [market | business] risk.

(Short Answer)

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Question 22

Companies with a great deal of long-term debt would be considered to have high _____ risk.

(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 selling below par value is selling at:

(Multiple Choice)

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Question 25

Positive aspects about bonds do not include:

(Multiple Choice)

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Question 26

Dividend reinvestment plans provide shareholders with cash,so that they can invest in similar stocks.

(True/False)

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Question 27

Bonds represent a form of corporate debt capital.

(True/False)

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Question 28

The value of a stock at any time depends on its expected stream of future earnings.

(True/False)

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Question 29

In most investments,there is a risk-return trade-off.

(True/False)

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Question 30

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 [higher | lower] the PE ratio,the less confidence investors are said to have in the corporation.

(Short Answer)

4.9/5

(88)

Question 31

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].

(Short Answer)

4.8/5

(78)

Question 32

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. -ACE,Inc.has a market capitalization of $500 million.It would be classified as a [small-cap | mid-cap].

(Short Answer)

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(72)

Question 33

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 possibility that a corporation might fail is [economic | business] risk.

(Short Answer)

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(78)

Question 34

Suppose the EPS of a stock is $2 and the current price to earnings ratio is 10.What is the current price of the stock?

(Multiple Choice)

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Question 35

Advantages of common stock investments include:

(Multiple Choice)

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Question 36

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:

(Multiple Choice)

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Question 37

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. -Past returns on an investment are [an indication | a guarantee] of future returns.

(Short Answer)

4.9/5

(85)

Question 38

Only the federal government issues convertible bonds.

(True/False)

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Question 39

Total investment return can be approximated using the current yield.

(True/False)

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Question 40

Showing 21 - 40 of 186

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. -Dividends and earnings per share [refer | do not refer] to the same thing.

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. -By holding stock in 5 companies,you are reducing [market | business] risk.

Companies with a great deal of long-term debt would be considered to have high _____ risk.

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

A bond selling below par value is selling at:

Positive aspects about bonds do not include:

Dividend reinvestment plans provide shareholders with cash,so that they can invest in similar stocks.

Bonds represent a form of corporate debt capital.

The value of a stock at any time depends on its expected stream of future earnings.

In most investments,there is a risk-return trade-off.

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 [higher | lower] the PE ratio,the less confidence investors are said to have in the corporation.

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].

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. -ACE,Inc.has a market capitalization of $500 million.It would be classified as a [small-cap | mid-cap].

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 possibility that a corporation might fail is [economic | business] risk.

Suppose the EPS of a stock is $2 and the current price to earnings ratio is 10.What is the current price of the stock?

Advantages of common stock investments include:

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:

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. -Past returns on an investment are [an indication | a guarantee] of future returns.

Only the federal government issues convertible bonds.

Total investment return can be approximated using the current yield.

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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