Question 1.1. After Christmas is over, Ted Riley works hard to control his expenses in February so that he can make an extra payment into a mutual fund. Which suggestion for obtaining the money needs for investing is he following? (Points: 1);paying himself first;taking advantage of employer-sponsored retirement programs;participating in an elective savings program;making a special effort once or twice a year to save;taking advantage of gifts, inheritance and other windfalls;Question 2.2. Which one of these is not an example of systematic risk? (Points: 1);recession;inflation;political upheaval such as war;decline in the auto industry;decline in national economy;Question 3.3. Equity financing is a popular choice to provide long-term financing for a corporation because: (Points: 1);a lender is always available to provide this type of financing.;it does not have to be repaid.;repayment doesn't have to be made for ten years or more.;only interest must be paid for the first five years.;it does not cost anything to sell in the primary market.;Question 4.4. What is bond laddering? (Points: 1);buying only long-term bonds;buying only short-term bonds;buying bonds with staggered maturity dates;combining stock and bond investments;exchanging bonds for shares of stock;Question 5.5. Phyllis Payne is buying shares in a mutual fund that invests in companies with a long history of paying a dividend. What type of mutual fund is she buying? (Points: 1);aggressive growth fund;equity income fund;global fund;international fund;regional fund;Question 6.6. Which of the following is a true statement? (Points: 1);The first order of business for an investor is acquiring the money needed to begin investing.;To be useful, investment objectives must be very general.;Investment goals are the same for each individual.;Because investment objectives deal with the future, it is useless to plan more than five years in the future.;A long-term investment objective involves a time period of five years or less.;Question 7.7. Which type of mutual fund invests primarily in high-yield, high-risk corporate bonds? (Points: 1);junk bond fund;intermediate corporate bond fund;municipal bond fund;short-term government bond fund;world bond fund;Question 8.8. Which one of the following investments offers the greatest liquidity? (Points: 1);savings account;common stock;corporate bond;real estate;collectibles;Question 9.9. Sandra Peterson has been thinking about investing in corporate bonds. She is concerned about safety and wants the most secure bond investment possible. She would most likely;invest in ____________ bonds. (Points: 1);debenture;mortgage;speculative;convertible;subordinated;Question 10.10. Jennifer Fritz is thinking about purchasing the stock of the Sunshine Corporation at the current market price. What type of order should she place? (Points: 1);market order;limit order;stop order;discretionary order;common order;Question 11.11. Acme Widget, Inc. has 1,000 shareholders who own a total of one million shares of its common stock. The stock currently sells for $85 per share. The company earned $5 million after taxes. The annual dividend is $0.50 per share. The firm has assets of $125 million and liabilities of $25 million. What is the P/E ratio? (Points: 1);10;11;13;17 (85/(5000000/1000000);20;Question 12.12. A mutual fund that invests in common stocks and bonds with the primary objectives of conserving capital, providing income, and long-term growth is called a(n) ____________ fund. (Points: 1);balanced;growth;industry;income;money market;Question 13.13. When investors purchase bonds that mature at regular intervals in order to balance risk and return, they are creating a: (Points: 1);bond ladder.;staggered investment program.;incremental investment program.;step-up allocation program.;guaranteed investment program.;Question 14.14. Acme Widget, Inc. has 1,000 shareholders who own a total of one million shares of its common stock. The company earned $10 million after taxes and paid out $4 million in dividends. The firm has assets of $125 million and liabilities of $25 million. What is the book value per share? (Points: 1);$4;$125;$10;$100 ((125-25)/1);$25;Question 15.15. Amy Farmer just received a legal form in the mail from a firm in which she owns stock. This form lists the issues to be decided at the annual stockholders' meeting and asks her to give written permission for someone else to vote for her if she cannot attend. What form has she received in the mail? (Points: 1);equity;proxy;voting rights;dividends;call option;Question 16.16. If a bond is purchased at a price below the face value, the yield to maturity is: (Points: 1);greater than the stated interest rate.;the same as the stated interest rate.;less than the stated interest rate.;zero.;of no significance.;Question 17.17. Which type of risk affects only a specific company or a specific industry? (Points: 1);interest rate;systematic;unsystematic;economic;inflation;Question 18.18. Common stock dividends are paid out of profits and: (Points: 1);must be approved by the firm's board of directors.;are guaranteed to be paid quarterly.;are paid prior to the firm's taxes.;usually paid semi-annually.;equal 100 percent of the firm's annual earnings.;Question 19.19. A mutual fund in which no sales charge is paid by the individual investor is called a(n) ____________ fund. (Points: 1);closed-end;open-end;load;no-load;convertible fund.;Question 20.20. The typical expense ratio for an index fund is: (Points: 1);0.50 percent or less.;between 0.50 and 1 percent.;between 1 and 2 percent.;between 2 and 3 percent.;over 5 percent.
Paper#81597 | Written in 18-Jul-2015Price : $21