Question 1

An unmarried investor with few responsibilities should be able to accept ____ better than two people who are married with young children.

Accepted Answer

An unmarried investor with few responsibilities likely has a higher risk tolerance and fewer financial obligations, making them more able to accept risk. On the other hand, two people who are married with young children likely have more financial responsibilities and a lower risk tolerance, making them less able to accept risk.

Question 2

The single most important reason for investing is for

Accepted Answer

While all of the options listed are important, the single most important reason for investing is generally considered to be for retirement. Investing early and consistently can help build a significant nest egg for retirement, and can provide a source of income to support oneself in old age.

Question 3

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Common stocks | Bonds] have no maturity date.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 4

Assume that the price of ABC common stock fell from in a short period of time from $105 to $84.Which of the following investors probably made the most money,if all of these transactions occurred prior to the drop in price?

Accepted Answer

The answer of Assume that the price of ABC common...

Question 5

Which of the following was not an intention of The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010?

Accepted Answer

Recapitalizing banks was not an intention mentioned in The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Its main objectives were to improve accountability, transparency, protect consumers from exploitation, and discontinue the "too big to fail" approach.

Question 6

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Speculating | Investing] is considered to be a long term activity.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 7

Portfolio management involves making decisions in order to

Accepted Answer

Portfolio management involves selecting and managing a combination of investments to meet specific investment objectives and goals. This includes determining the appropriate asset allocation, diversification, and risk tolerance for an individual or institution's investment needs. It is not solely focused on buying low and selling high or maximizing risk and return, although those may be factors in the decision-making process. The goal is to create a well-balanced and diversified portfolio that aligns with the investor's goals and risk tolerance. Therefore, choice E is the best option.

Question 8

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Ownership in a corporation would be represented by [stock | bonds].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 9

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Depositing a lump sum and letting it grow | Making monthly deposits to your investment] would be the least costly way to reach a financial goal.

Accepted Answer

Depositing a lump sum and letting it grow would be the least costly way to reach a financial goal because it allows for compound interest to work over a longer period of time. Making monthly deposits may result in additional fees and may not have as much time to accumulate interest.

Question 10

A long term investment strategy includes all of the following except

Accepted Answer

A long term investment strategy is focused on investments with a time horizon of 5-10 years or more. It involves careful selection of stocks and bonds based on risk-return behavior and diversification to minimize risk. It also includes investor education to make informed investment decisions. However, it does not involve immediate financial needs to pay current bills, as it is a long term approach.

Question 11

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The owner of a bond would expect to receive [steady | variable] annual income.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 12

NYSE Euronext is a part of the broker market accounting for what percent of global equities?

Accepted Answer

The answer of NYSE Euronext is a part of the...

Question 13

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Before you start investing,you should plan to have a minimum of [$1,000 | $15,000] available.

Accepted Answer

The statement suggests that you should have a minimum amount available before you start investing, and $1,000 is generally considered a reasonable minimum amount. $15,000 may be more than necessary for some investors starting out.

Question 14

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The first thing you need to determine in order to reach an investment goal is the [rate of return you can receive | the amount of money you need to set aside periodically].

Accepted Answer

The statement refers to determining the rate of return you can receive on your investment, which is the first step in creating an investment plan. The amount of money you need to set aside periodically is not the first step, but rather a calculation that would come later in the process after determining the rate of return.

Question 15

In addition to a description of any investments owned,the worksheet listing your investments should include

Accepted Answer

All of the listed information is important for accurately tracking and evaluating your investments. The purchase price and original amount provide insight into the profitability of the investment, the current annual income shows the ongoing return on investment, and the latest market value gives an up-to-date understanding of the investment's worth.

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Investing | Speculating] is viewed as a short-term activity that involves the buying and selling of securities in which future value and expected return are highly uncertain.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-An investment offering a high current income would likely be more desirable for [a young couple | a retired couple].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 18

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A fixed dividend would be received with [common | preferred] stock.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 19

A stock portfolio containing 80% common stocks is most likely to be appropriate for

Accepted Answer

A stock portfolio containing 80% common stocks is aggressive and high risk. It is most suitable for a young single worker putting money aside for retirement because they have a longer time horizon to ride out market fluctuations and are able to take on more risk in pursuit of higher returns. Retired couples, divorced middle-aged mothers, and blue-collar families with kids may have shorter time horizons or more immediate financial needs, making this level of risk inappropriate for their situations.

Question 20

Which of the following terms best describes a day trader

Accepted Answer

A day trader is a type of speculator who buys and sells financial instruments (stocks, options, futures, currencies, etc.) within the same day or several times throughout the day with the intention of making a profit from short-term price movements.

Quiz 11: Investment Planning

An unmarried investor with few responsibilities should be able to accept ____ better than two people who are married with young children.

The single most important reason for investing is for

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Common stocks | Bonds] have no maturity date.

Assume that the price of ABC common stock fell from in a short period of time from $105 to $84.Which of the following investors probably made the most money,if all of these transactions occurred prior to the drop in price?

Which of the following was not an intention of The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Speculating | Investing] is considered to be a long term activity.

Portfolio management involves making decisions in order to

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Ownership in a corporation would be represented by [stock | bonds].

A long term investment strategy includes all of the following except

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The owner of a bond would expect to receive [steady | variable] annual income.

NYSE Euronext is a part of the broker market accounting for what percent of global equities?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Before you start investing,you should plan to have a minimum of [$1,000 | $15,000] available.

In addition to a description of any investments owned,the worksheet listing your investments should include

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A fixed dividend would be received with [common | preferred] stock.

A stock portfolio containing 80% common stocks is most likely to be appropriate for

Which of the following terms best describes a day trader