Question 1

If the total rate of return is multiplied by 1/N,where N is the number of years for which the investment was held,the result is the

Accepted Answer

A) serialized rate of return. 
B) annualized rate of return. 
C) tax-free rate of return. 
D) capitalized rate of return. 
A) serialized rate of return. 
B) annualized rate of return. 
C) tax-free rate of return. 
D) capitalized rate of return.

Question 2

Investing prior to age 54 is a time of ________ by investing the majority of one's savings into ________.

Accepted Answer

A) wealth preservation;conservative funds 
B) wealth preservation;preferred stocks 
C) wealth accumulation;common stocks 
D) wealth accumulation;bonds 
E) wealth dispersal;common and preferred stocks 
A) wealth preservation;conservative funds 
B) wealth preservation;preferred stocks 
C) wealth accumulation;common stocks 
D) wealth accumulation;bonds 
E) wealth dispersal;common and preferred stocks

Question 3

The Internet is full of investment information,and all of it is stringently regulated so you can be sure of its reliability.

Accepted Answer

A) True 
 B)False

Question 4

Long term capital gains may be taxed at ________ percent,depending on tax bracket.

Accepted Answer

A) 8 
B) 10 
C) 15 
D) 25 
E) 40 
A) 8 
B) 10 
C) 15 
D) 25 
E) 40

Question 5

Merrill Lynch,Edward Jones and Morgan Stanley Smith Barney are all full service brokers.

Accepted Answer

A) True 
 B)False

Question 6

The OTC market is a link-up of dealers,with stringent listing and membership requirements.

Accepted Answer

A) True 
 B)False

Question 7

A day trader typically sits at a computer and looks for stocks that are moving up or down in value.

Accepted Answer

A) True 
 B)False

Question 8

Underwriting the issue takes place in which market?

Accepted Answer

A) Secondary 
B) Primary 
C) Seasonal 
D) Credit 
A) Secondary 
B) Primary 
C) Seasonal 
D) Credit

Question 9

As a young college graduate,your biggest investment ally is

Accepted Answer

A) leverage. 
B) the amount of investment. 
C) tax-free investments. 
D) time. 
E) the class of investments. 
A) leverage. 
B) the amount of investment. 
C) tax-free investments. 
D) time. 
E) the class of investments.

Question 10

A limit order specifies a securities trade is to be made only at a certain price or better.

Accepted Answer

A) True 
 B)False

Question 11

IBM is considering hiring an investment banker who will purchase and subsequently resell an issue of stock for them.This service is called

Accepted Answer

A) stock brokerage. 
B) full-service brokerage. 
C) underwriting. 
D) churning. 
E) none of the above. 
A) stock brokerage. 
B) full-service brokerage. 
C) underwriting. 
D) churning. 
E) none of the above.

Question 12

You specify that your trade is to be made only at a certain price or better.You are placing a(n)

Accepted Answer

A) stop order. 
B) limit order. 
C) market order. 
D) open order. 
E) closed order. 
A) stop order. 
B) limit order. 
C) market order. 
D) open order. 
E) closed order.

Question 13

The ________ rate is the interest to be paid annually on a bond as a percentage of its par value.

Accepted Answer

A) base 
B) coupon interest 
C) face interest 
D) compound interest 
E) none of the above 
A) base 
B) coupon interest 
C) face interest 
D) compound interest 
E) none of the above

Question 14

According to the Keown book,overconfidence afflicts women more often than men,and it also leads women to trade too often.

Accepted Answer

A) True 
 B)False

Question 15

The difference between an investment and speculation is that an investment ________ while speculation depends solely on ________ to produce results.

Accepted Answer

A) costs less;the economic conditions 
B) generates a return;supply and demand 
C) costs less;generating a return 
D) depends on supply and demand;economic conditions 
E) depends on supply and demand;generating a return 
A) costs less;the economic conditions 
B) generates a return;supply and demand 
C) costs less;generating a return 
D) depends on supply and demand;economic conditions 
E) depends on supply and demand;generating a return

Question 16

A margin call requires you to replenish the margin account by adding additional cash or securities to bring the account back up to the minimum.

Accepted Answer

A) True 
 B)False

Question 17

Describe the sources of risk in the risk-return trade off.

Accepted Answer

The interest rate risk is the risk of fl

Question 18

Investing in bonds tends to be riskier financial strategy than investing in common stocks.

Accepted Answer

A) True 
 B)False

Question 19

Diversification works in one's portfolio because stock returns in one's portfolio do not always move in the same direction;as a result,the upswings and downturns in one's portfolio eliminate one another.

Accepted Answer

A) True 
 B)False

Question 20

Jennifer has money invested in stocks.She earns a return on her investment,which is a portion of the company's profits,called

Accepted Answer

A) interest. 
B) a return. 
C) dividends. 
D) growth. 
E) retained earnings. 
A) interest. 
B) a return. 
C) dividends. 
D) growth. 
E) retained earnings.

If the total rate of return is multiplied by 1/N,where N is the number of years for which the investment was held,the result is the

Investing prior to age 54 is a time of by investing the majority of one's savings into .

The Internet is full of investment information,and all of it is stringently regulated so you can be sure of its reliability.

Long term capital gains may be taxed at ________ percent,depending on tax bracket.

Merrill Lynch,Edward Jones and Morgan Stanley Smith Barney are all full service brokers.

The OTC market is a link-up of dealers,with stringent listing and membership requirements.

A day trader typically sits at a computer and looks for stocks that are moving up or down in value.

Underwriting the issue takes place in which market?

As a young college graduate,your biggest investment ally is

A limit order specifies a securities trade is to be made only at a certain price or better.

IBM is considering hiring an investment banker who will purchase and subsequently resell an issue of stock for them.This service is called

You specify that your trade is to be made only at a certain price or better.You are placing a(n)

The ________ rate is the interest to be paid annually on a bond as a percentage of its par value.

According to the Keown book,overconfidence afflicts women more often than men,and it also leads women to trade too often.

The difference between an investment and speculation is that an investment while speculation depends solely on to produce results.

A margin call requires you to replenish the margin account by adding additional cash or securities to bring the account back up to the minimum.

Describe the sources of risk in the risk-return trade off.

Investing in bonds tends to be riskier financial strategy than investing in common stocks.

Diversification works in one's portfolio because stock returns in one's portfolio do not always move in the same direction;as a result,the upswings and downturns in one's portfolio eliminate one another.

Jennifer has money invested in stocks.She earns a return on her investment,which is a portion of the company's profits,called

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

Investing in Stocks

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 11: Investment Basics

If the total rate of return is multiplied by 1/N,where N is the number of years for which the investment was held,the result is the

Investing prior to age 54 is a time of ________ by investing the majority of one's savings into ________.

The Internet is full of investment information,and all of it is stringently regulated so you can be sure of its reliability.

Long term capital gains may be taxed at ________ percent,depending on tax bracket.

Merrill Lynch,Edward Jones and Morgan Stanley Smith Barney are all full service brokers.

The OTC market is a link-up of dealers,with stringent listing and membership requirements.

A day trader typically sits at a computer and looks for stocks that are moving up or down in value.

Underwriting the issue takes place in which market?

As a young college graduate,your biggest investment ally is

A limit order specifies a securities trade is to be made only at a certain price or better.

IBM is considering hiring an investment banker who will purchase and subsequently resell an issue of stock for them.This service is called

You specify that your trade is to be made only at a certain price or better.You are placing a(n)

The ________ rate is the interest to be paid annually on a bond as a percentage of its par value.

According to the Keown book,overconfidence afflicts women more often than men,and it also leads women to trade too often.

The difference between an investment and speculation is that an investment ________ while speculation depends solely on ________ to produce results.

A margin call requires you to replenish the margin account by adding additional cash or securities to bring the account back up to the minimum.

Describe the sources of risk in the risk-return trade off.

Investing in bonds tends to be riskier financial strategy than investing in common stocks.

Diversification works in one's portfolio because stock returns in one's portfolio do not always move in the same direction;as a result,the upswings and downturns in one's portfolio eliminate one another.

Jennifer has money invested in stocks.She earns a return on her investment,which is a portion of the company's profits,called

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

Investing in Stocks

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

Investing prior to age 54 is a time of by investing the majority of one's savings into .

The difference between an investment and speculation is that an investment while speculation depends solely on to produce results.