Question 1

It is suggested that you allocate a percentage of your assets to growth investments based on the:

Accepted Answer

A)  difference between your age and 100.
B)  difference between your age and 75.
C)  difference between your age and 70.
D)  difference between your age and 65.
E)  difference between your age and 62.

Question 2

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

Accepted Answer

A)  inflation
B)  interest rate
C)  business failure
D)  systematic
E)  income

Question 3

An intermediate-term investment goal 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.

Question 4

Which type of risk affects only a specific company or a specific industry?

Accepted Answer

A)  Interest rate
B)  Systematic
C)  Unsystematic
D)  Economic
E)  Inflation

Question 5

Which of the following statements is true regarding effective investment planning?

Accepted Answer

A)  When establishing an investment program, you should begin by monitoring your investments.
B)  When you are choosing an investment, you should examine only the interest rate risk factor associated with each investment.
C)  When establishing an investment program, you should examine the potential return offered by different investment alternatives.
D)  Leave the financial planning to the professionals.
E)  There is no need to monitor your investments after you have made your investment decision.

Question 6

Matt Jackson is single and 24 years old.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)  Certificates of deposits
E)  Savings account

Question 7

To manage a financial crisis,many experts recommend that you take action to make sure your financial affairs are in order.Name and describe six steps you can take to safeguard against a crisis:

Accepted Answer

Students may choose from the list of eig...

Question 8

In how many of the years since 1926 have stocks lost money?

Accepted Answer

A)  0
B)  10
C)  25
D)  40
E)  55

Question 9

Bob and Mary Martin are both 35 years old.Although they graduated from college almost 15 years ago,they have never developed a diversified investment program.What extra money they had was invested in high-tech stocks that did quite well until the last five years.Then,with the economic downturn,they encountered major losses.How could asset allocation have reduced the dollar amounts of the Martin's losses?

Accepted Answer

Asset allocation is the process of sprea...

Question 10

A line of credit is a short-term loan that is approved before the money is actually needed.

Accepted Answer

A) True 
 B)False

Question 11

Karen Johnson paid $1,000 for a corporate bond issued by an oil and gas corporation.The annual interest rate for the bond is 3 percent.
a.What is the annual interest amount for this bond?
b.Since the annual interest for this bond is paid every six months or semiannually,how much will Karen receive for her bond each six months?
c.If comparable,new bonds pay 5 percent interest,what is the approximate market value for Karen's oil and gas bond?

Accepted Answer

a.1,000 * .03 = $30 annual int...

Exam 13: Investing Fundamentals

Correct Answer
verified
Asset allocation is the process of sprea...
View Answer

To manage a financial crisis,many experts recommend that you take action to make sure your financial affairs are in order.Name and describe six steps you can take to safeguard against a crisis:

Correct Answer
verified
Students may choose from the list of eig...
View Answer

Which type of risk affects only a specific company or a specific industry?

Correct Answer
verified

Which of the following statements is true regarding effective investment planning?

Correct Answer
verified

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

Correct Answer
verified

A line of credit is a short-term loan that is approved before the money is actually needed.

Correct Answer
verified

Correct Answer
verified
a.1,000 * .03 = $30 annual int...
View Answer

It is suggested that you allocate a percentage of your assets to growth investments based on the:

Correct Answer
verified

In how many of the years since 1926 have stocks lost money?

Correct Answer
verified

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

Correct Answer
verified

Matt Jackson is single and 24 years old.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

Exam 13: Investing Fundamentals

Correct AnswerverifiedAsset allocation is the process of sprea...View AnswerShow Answer

To manage a financial crisis,many experts recommend that you take action to make sure your financial affairs are in order.Name and describe six steps you can take to safeguard against a crisis:

Correct AnswerverifiedStudents may choose from the list of eig...View AnswerShow Answer

Which type of risk affects only a specific company or a specific industry?

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding effective investment planning?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A line of credit is a short-term loan that is approved before the money is actually needed.

Correct AnswerverifiedShow Answer

Correct Answerverifieda.1,000 * .03 = $30 annual int...View AnswerShow Answer

It is suggested that you allocate a percentage of your assets to growth investments based on the:

Correct AnswerverifiedShow Answer

In how many of the years since 1926 have stocks lost money?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Matt Jackson is single and 24 years old.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

Correct Answer
verified
Asset allocation is the process of sprea...
View Answer

Correct Answer
verified
Students may choose from the list of eig...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.1,000 * .03 = $30 annual int...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified