Question 1

The dividend yield tells investors which of the following?

Accepted Answer

A) What their portfolio is worth on the open market 
B) How much in the way of a return they would receive if the stock price and the dividend level remain constant 
C) When the company will be releasing dividends 
D) How much in total the company has available to pay out in dividends 
E) none of the above 
A) What their portfolio is worth on the open market 
B) How much in the way of a return they would receive if the stock price and the dividend level remain constant 
C) When the company will be releasing dividends 
D) How much in total the company has available to pay out in dividends 
E) none of the above

Question 2

Coca-Cola is an example of a red-chip stock.

Accepted Answer

A) True 
 B)False

Question 3

Marian read in a financial magazine that the discounted dividends valuation model of common stock defines the value of a share of common stock as the ________ value of the infinite stream of future ________.

Accepted Answer

A) future;growth 
B) future;earnings 
C) dividend;earnings 
D) present;dividends 
E) present;earnings 
A) future;growth 
B) future;earnings 
C) dividend;earnings 
D) present;dividends 
E) present;earnings

Question 4

A stock split is a tactic by a corporation to manipulate the market price of its stock.

Accepted Answer

A) True 
 B)False

Question 5

Can you explain the risk-return trade-off with common stocks?

Accepted Answer

Stocks have more risk than other investm

Question 6

The DJIA weights stocks based on

Accepted Answer

A) the size of the company. 
B) their place alphabetically. 
C) their relative prices. 
D) none of the above. 
A) the size of the company. 
B) their place alphabetically. 
C) their relative prices. 
D) none of the above.

Question 7

All of the following are typically listed on a stock quote except?

Accepted Answer

A) Price 
B) P/E 
C) CEO 
D) Div &Yield 
A) Price 
B) P/E 
C) CEO 
D) Div &Yield

Question 8

A company's dividend distribution can be in the form of cash or additional stock.

Accepted Answer

A) True 
 B)False

Question 9

Holding several types of stock can greatly reduce the risk in your portfolio.

Accepted Answer

A) True 
 B)False

Question 10

Distinguish between the technical analysis and fundamental approaches of valuation of common stock.

Accepted Answer

Technical analysis takes a number of for

Question 11

Explain the purpose and value of the dividend yield ratio.

Accepted Answer

The dividend yield ratio is a tool that

Question 12

Both capital gains and dividends are guaranteed with common stock.

Accepted Answer

A) True 
 B)False

Question 13

Earnings per share is a ratio that describes the amount of net income less preferred stock dividends available to the common shareholders.

Accepted Answer

A) True 
 B)False

Question 14

What is the importance of the P/E Ratio to investors?

Accepted Answer

The P/E ratio is a measure of risk and t

Question 15

A stock currently sells for $100 per share,and has earnings of $2.00 per share.What is the stock's P/E ratio?

Accepted Answer

A) 50.00 
B) 25.00 
C) 5.00 
D) 1.00 
A) 50.00 
B) 25.00 
C) 5.00 
D) 1.00

Question 16

A ________ increases the number of stock shares outstanding by replacing each existing share of stock with a stated number of new shares.

Accepted Answer

A) dividend reinvestment 
B) stock split 
C) stock repurchase 
D) stock reissue 
E) none of the above 
A) dividend reinvestment 
B) stock split 
C) stock repurchase 
D) stock reissue 
E) none of the above

Question 17

A company that has a Beta much greater than 1 is said to have

Accepted Answer

A) about the same risk of the market. 
B) more risk than the market. 
C) less risk than the market. 
D) cannot tell risk level with Beta. 
A) about the same risk of the market. 
B) more risk than the market. 
C) less risk than the market. 
D) cannot tell risk level with Beta.

Question 18

Stocks reduce risk by portfolio rebalancing.

Accepted Answer

A) True 
 B)False

Question 19

Because the DJIA weights stocks based on their relative prices,when a high priced stock moves a small amount on the DJIA,it has a(n)________ impact on the index.

Accepted Answer

A) limited 
B) inordinately large 
C) insignificant 
D) minute 
A) limited 
B) inordinately large 
C) insignificant 
D) minute

Question 20

Greg Jewell read about several companies that were performing relatively well despite the current recession.Stocks like these,that in some cases actually perform better during downturns in the economy,are called ________ stocks.

Accepted Answer

A) cyclical 
B) speculative 
C) defensive 
D) growth 
E) seasonal 
A) cyclical 
B) speculative 
C) defensive 
D) growth 
E) seasonal

The dividend yield tells investors which of the following?

Coca-Cola is an example of a red-chip stock.

Marian read in a financial magazine that the discounted dividends valuation model of common stock defines the value of a share of common stock as the value of the infinite stream of future .

A stock split is a tactic by a corporation to manipulate the market price of its stock.

Can you explain the risk-return trade-off with common stocks?

The DJIA weights stocks based on

All of the following are typically listed on a stock quote except?

A company's dividend distribution can be in the form of cash or additional stock.

Holding several types of stock can greatly reduce the risk in your portfolio.

Distinguish between the technical analysis and fundamental approaches of valuation of common stock.

Explain the purpose and value of the dividend yield ratio.

Both capital gains and dividends are guaranteed with common stock.

Earnings per share is a ratio that describes the amount of net income less preferred stock dividends available to the common shareholders.

What is the importance of the P/E Ratio to investors?

A stock currently sells for $100 per share,and has earnings of $2.00 per share.What is the stock's P/E ratio?

A ________ increases the number of stock shares outstanding by replacing each existing share of stock with a stated number of new shares.

A company that has a Beta much greater than 1 is said to have

Stocks reduce risk by portfolio rebalancing.

Because the DJIA weights stocks based on their relative prices,when a high priced stock moves a small amount on the DJIA,it has a(n)________ impact on the index.

Greg Jewell read about several companies that were performing relatively well despite the current recession.Stocks like these,that in some cases actually perform better during downturns in the economy,are called ________ stocks.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 12: Investing in Stocks

The dividend yield tells investors which of the following?

Coca-Cola is an example of a red-chip stock.

Marian read in a financial magazine that the discounted dividends valuation model of common stock defines the value of a share of common stock as the ________ value of the infinite stream of future ________.

A stock split is a tactic by a corporation to manipulate the market price of its stock.

Can you explain the risk-return trade-off with common stocks?

The DJIA weights stocks based on

All of the following are typically listed on a stock quote except?

A company's dividend distribution can be in the form of cash or additional stock.

Holding several types of stock can greatly reduce the risk in your portfolio.

Distinguish between the technical analysis and fundamental approaches of valuation of common stock.

Explain the purpose and value of the dividend yield ratio.

Both capital gains and dividends are guaranteed with common stock.

Earnings per share is a ratio that describes the amount of net income less preferred stock dividends available to the common shareholders.

What is the importance of the P/E Ratio to investors?

A stock currently sells for $100 per share,and has earnings of $2.00 per share.What is the stock's P/E ratio?

A ________ increases the number of stock shares outstanding by replacing each existing share of stock with a stated number of new shares.

A company that has a Beta much greater than 1 is said to have

Stocks reduce risk by portfolio rebalancing.

Because the DJIA weights stocks based on their relative prices,when a high priced stock moves a small amount on the DJIA,it has a(n)________ impact on the index.

Greg Jewell read about several companies that were performing relatively well despite the current recession.Stocks like these,that in some cases actually perform better during downturns in the economy,are called ________ stocks.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Marian read in a financial magazine that the discounted dividends valuation model of common stock defines the value of a share of common stock as the value of the infinite stream of future .