FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Investment Fundamentals

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

The investment strategy where an investor buys a fixed dollar amount of stocks or mutual funds regularly over a long period of time is called​

A) ​dollar-cost averaging.
B) ​asset allocation.
C) ​portfolio diversification.
D) ​business-cycle timing.

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is the most diversified investment portfolio?​

A) ​Equal amounts of stock in IBM,Intel,and Microsoft
B) ​Municipal bonds issued by New York,Houston,and Chicago
C) ​One-year,five-year,and ten-year certificates of deposit
D) ​100 shares of Wal-Mart stock,an IBM bond,and a two-year certificate of deposit

E) C) and D)
F) None of the above

Correct Answer

verified

D

Question 3

True/False

Review LaterAdd Note

Short-term investors are usually more interested in current income than capital gains.

The return on lending investments is limited to what the investor was originally promised.

Which of the following arises when investors decide to copy the observed decisions of other investors or movements in the markets rather than follow their own beliefs and information.

_________ has to do with the speed with which new information is reflected in the market prices for investments.

Patricia borrowed $20,000 to make a $50,000 real estate investment.She later sold the real estate making a $4,000 profit.What was Patricia's total return on this investment?

Which of the following investments has the lowest risk?

Dividend reinvestment plans are appropriate for investors who do not currently need dividend income.

An explanation of your investment philosophy and your logic on investing to reach specific goals is a(n) ​

Leverage is the speed and ease with which an investment can be converted to cash.

A long-term investor generally has a high-risk investment philosophy.

Being risk averse means that you focus primarily on preservation of capital with little desire for current income from your investments.

Gary purchased 250 shares of PAC stock for $37 per share and sold this same stock one year later for $44 per share.He paid commissions of $15 when he purchased the stock and $10 when he sold the stock.Dividends of $1.50 per share were paid during the year.The total rate of return on this investment was​

Shares in the ownership of a corporation are called​

If your time horizon is zero to five years and your portfolio consists of 35 percent cash,40 percent bonds,and 25 percent stocks,you would be considered to have a(n) ____ investment philosophy.

Ownership investments generally

The more efficient a market for investments the easier it is to find bargains.

____ is (are) the portion of a company's profits that the firm pays out to its shareholders.

The average length of a bull market is ____ months,whereas the average length of a bear market is ____ months.