Question 1

An intermediate-term investment objective is defined as one that will be accomplished within a period of:

Accepted Answer

A)   five to ten years.
B)   two to five years.
C)   more than five years.
D)   one to five years.
E)   less than one year.F) A) and B)
G) B) and D)

Question 2

An emergency fund is an amount of money that can be obtained quickly in case of immediate need.

Accepted Answer

A) True 
 B)False

Question 3

Over the past 50 years, stocks have returned approximately 10 percent a year while U.S. government bonds have returned about what percent?

Accepted Answer

A)   1
B)   3
C)   5
D)   7
E)   9F) B) and C)
G) A) and C)

Question 4

When a bondholder loses money because interest rates in the economy increase, it is an example of ____________ risk.

Accepted Answer

A)   market
B)   interest rate
C)   inflation
D)   business failure
E)   currentF) A) and D)
G) A) and C)

Question 5

A short-term investment objective is one that will be accomplished within a period of:

Accepted Answer

A)   one year or less.
B)   two to five years.
C)   more than five years.
D)   three years or less.
E)   two years or less.F) B) and E)
G) A) and E)

Question 6

Gina Davidson has received $50,000 in a divorce settlement and is trying to decide how to invest it. She has looked at stocks but knows that some stocks have lost a lot of value for their owners recently. What aspect of investing is she most concerned about?

Accepted Answer

A)   Risk
B)   Return
C)   Diversification
D)   Liquidity
E)   Investment growthF) B) and E)
G) B) and C)

Question 7

Preferred stock represents the most basic form of corporate ownership.

Accepted Answer

A) True 
 B)False

Question 8

Which one of the following is not a recommended step individuals can use to weather a future financial crisis?

Accepted Answer

A)   Establish a smaller than usual emergency fund
B)   Consider converting investments to cash to preserve value
C)   Contact banks and credit card companies if you are unable to make payments
D)   Pay off credit cards
E)   Seek cheaper alternatives to frequently purchased itemsF) A) and C)
G) A) and D)

Question 9

Choose four of the investment alternatives presented in Chapter 13 and describe how the factors of safety, risk, income, growth, and liquidity affect that investment alternative.

Accepted Answer

The answer to this question depends on w...

Question 10

Which one of the following is a true statement?

Accepted Answer

A)   It is not possible to overpay for real estate.
B)   Location is the least important factor when making a real estate investment.
C)   There are many factors to consider before investing in real estate.
D)   There is no reason to evaluate a real estate investment because real estate always increases in value sooner or later.
E)   Finding a buyer for a piece of real estate is always easy.F) B) and D)
G) B) and C)

Question 11

Establishing a(n)  ___________ ensures that you will have an amount of money that can be obtained quickly in case of immediate need.

Accepted Answer

A)   traditional IRA
B)   emergency fund
C)   Roth IRA
D)   403b
E)   401kF) C) and D)
G) A) and D)

Question 12

Matt Jackson is single and 24. He has just graduated from college and obtained a job making $26,400 a year. Which one of the following investments would you recommend for his long-term investment program?

Accepted Answer

A)   Corporate bonds
B)   Government bonds
C)   Growth stocks
D)   Commodities
E)   Money-market fundF) B) and C)
G) A) and B)

Question 13

For an investor who wants to speculate, which of the following investments would be appropriate?

Accepted Answer

A)   Blue-chip stocks
B)   Options
C)   Utility stocks
D)   Corporate bonds
E)   Preferred stocksF) B) and E)
G) B) and D)

Question 14

After the death of her husband, Gina Baker, 35, received a check for $350,000 from a life insurance company. Gina has two small children and wants to make sure that both she and the children are taken care of in the future. Based on this information, which of the investment factors listed below would be the most important to Gina in her investment program?

Accepted Answer

A)   Beta
B)   Safety
C)   Business failure
D)   Market risk
E)   LiquidityF) B) and E)
G) A) and E)

Question 15

Brenda Lee has received a $10,000 gift from her mother and is trying to decide how to invest it. She thinks she would like to invest it in stocks because she knows that stocks have been earning about a 10% rate of return over the last several years. What aspect of investing interests Brenda?

Accepted Answer

A)   Risk
B)   Return
C)   Diversification
D)   Liquidity
E)   IncomeF) A) and E)
G) None of the above

Question 16

Bad products or poor corporate management may result in investors experiencing ______________ risk.

Accepted Answer

A)   inflation
B)   interest rate
C)   business failure
D)   systematic
E)   incomeF) B) and E)
G) All of the above

Question 17

Because of the age factor, most young investors tend to invest a large percentage of their nest egg in growth-oriented investments.

Accepted Answer

A) True 
 B)False

Question 18

Alice Cooper contributes ten percent of her monthly earnings to her 401(k)  plan at work. The plan allows her to invest in several different types of mutual funds and her employer matches up to 5% of her salary. Which suggestion for obtaining the money she needs for investing is she following?

Accepted Answer

A)   Paying herself first
B)   Taking advantage of employer-sponsored retirement programs
C)   Participating in an elective savings program
D)   Making a special effort once or twice a year to save
E)   Taking advantage of gifts, inheritance and other windfallsF) B) and E)
G) B) and D)

Question 19

Which of the following is a true statement?

Accepted Answer

A)   The first order of business for an investor is acquiring the money needed to begin investing.
B)   To be useful, investment objectives must be very general.
C)   Investment goals are the same for each individual.
D)   Because investment objectives deal with the future, it is useless to plan more than five years in the future.
E)   A long-term investment objective involves a time period of five years or less.F) B) and D)
G) B) and E)

Question 20

Describe the sources of investment information investors can use to evaluate a potential investment.

Accepted Answer

In Chapter 13, the following sources of ...

Exam 13: Investing Fundamentals

Bad products or poor corporate management may result in investors experiencing ______________ risk.

Correct Answer
verified

Brenda Lee has received a $10,000 gift from her mother and is trying to decide how to invest it. She thinks she would like to invest it in stocks because she knows that stocks have been earning about a 10% rate of return over the last several years. What aspect of investing interests Brenda?

Correct Answer
verified

Which of the following is a true statement?

Correct Answer
verified

Which one of the following is not a recommended step individuals can use to weather a future financial crisis?

Correct Answer
verified

When a bondholder loses money because interest rates in the economy increase, it is an example of ____________ risk.

Correct Answer
verified

Over the past 50 years, stocks have returned approximately 10 percent a year while U.S. government bonds have returned about what percent?

Correct Answer
verified

Matt Jackson is single and 24. He has just graduated from college and obtained a job making $26,400 a year. Which one of the following investments would you recommend for his long-term investment program?

Correct Answer
verified

Because of the age factor, most young investors tend to invest a large percentage of their nest egg in growth-oriented investments.

Correct Answer
verified

Correct Answer
verified

An emergency fund is an amount of money that can be obtained quickly in case of immediate need.

Correct Answer
verified

For an investor who wants to speculate, which of the following investments would be appropriate?

Correct Answer
verified

Preferred stock represents the most basic form of corporate ownership.

Correct Answer
verified

Establishing a(n) ___________ ensures that you will have an amount of money that can be obtained quickly in case of immediate need.

Correct Answer
verified

Alice Cooper contributes ten percent of her monthly earnings to her 401(k) plan at work. The plan allows her to invest in several different types of mutual funds and her employer matches up to 5% of her salary. Which suggestion for obtaining the money she needs for investing is she following?

Correct Answer
verified

Which one of the following is a true statement?

Correct Answer
verified

An intermediate-term investment objective is defined as one that will be accomplished within a period of:

Correct Answer
verified

Describe the sources of investment information investors can use to evaluate a potential investment.

Correct Answer
verified
In Chapter 13, the following sources of ...
View Answer

A short-term investment objective is one that will be accomplished within a period of:

Correct Answer
verified

Gina Davidson has received $50,000 in a divorce settlement and is trying to decide how to invest it. She has looked at stocks but knows that some stocks have lost a lot of value for their owners recently. What aspect of investing is she most concerned about?

Correct Answer
verified

Choose four of the investment alternatives presented in Chapter 13 and describe how the factors of safety, risk, income, growth, and liquidity affect that investment alternative.

Correct Answer
verified
The answer to this question depends on w...
View Answer

Exam 13: Investing Fundamentals

Bad products or poor corporate management may result in investors experiencing ______________ risk.

Correct AnswerverifiedShow Answer

Brenda Lee has received a $10,000 gift from her mother and is trying to decide how to invest it. She thinks she would like to invest it in stocks because she knows that stocks have been earning about a 10% rate of return over the last several years. What aspect of investing interests Brenda?

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

Which one of the following is not a recommended step individuals can use to weather a future financial crisis?

Correct AnswerverifiedShow Answer

When a bondholder loses money because interest rates in the economy increase, it is an example of ____________ risk.

Correct AnswerverifiedShow Answer

Over the past 50 years, stocks have returned approximately 10 percent a year while U.S. government bonds have returned about what percent?

Correct AnswerverifiedShow Answer

Matt Jackson is single and 24. He has just graduated from college and obtained a job making $26,400 a year. Which one of the following investments would you recommend for his long-term investment program?

Correct AnswerverifiedShow Answer

Because of the age factor, most young investors tend to invest a large percentage of their nest egg in growth-oriented investments.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An emergency fund is an amount of money that can be obtained quickly in case of immediate need.

Correct AnswerverifiedShow Answer

For an investor who wants to speculate, which of the following investments would be appropriate?

Correct AnswerverifiedShow Answer

Preferred stock represents the most basic form of corporate ownership.

Correct AnswerverifiedShow Answer

Establishing a(n) ___________ ensures that you will have an amount of money that can be obtained quickly in case of immediate need.

Correct AnswerverifiedShow Answer

Alice Cooper contributes ten percent of her monthly earnings to her 401(k) plan at work. The plan allows her to invest in several different types of mutual funds and her employer matches up to 5% of her salary. Which suggestion for obtaining the money she needs for investing is she following?

Correct AnswerverifiedShow Answer

Which one of the following is a true statement?

Correct AnswerverifiedShow Answer

An intermediate-term investment objective is defined as one that will be accomplished within a period of:

Correct AnswerverifiedShow Answer

Describe the sources of investment information investors can use to evaluate a potential investment.

Correct AnswerverifiedIn Chapter 13, the following sources of ...View AnswerShow Answer

A short-term investment objective is one that will be accomplished within a period of:

Correct AnswerverifiedShow Answer

Gina Davidson has received $50,000 in a divorce settlement and is trying to decide how to invest it. She has looked at stocks but knows that some stocks have lost a lot of value for their owners recently. What aspect of investing is she most concerned about?

Correct AnswerverifiedShow Answer

Choose four of the investment alternatives presented in Chapter 13 and describe how the factors of safety, risk, income, growth, and liquidity affect that investment alternative.

Correct AnswerverifiedThe answer to this question depends on w...View AnswerShow Answer

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Correct Answer
verified
In Chapter 13, the following sources of ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The answer to this question depends on w...
View Answer