quiz 3 answers investments
0 out of 1 points
Which of the following is excluded from an individual's cash budget?
Selected Answer: social security tax payments
Answers:
wages and salary
retirement account
social security tax payments
alimony
Question 2
0 out of 1 points
One means to adjust for risk is
Selected Answer: to divide each funds' return by the return on the market
Answers:
standardize funds' return by their beta coefficients
compute their rates of return including both income and capital gain distributions
standardize funds' costs by an aggregate index of mutual fund expenses
to divide each funds' return by the return on the market
Question 3
0 out of 1 points
An index fund limits its portfolio to
Selected Answer: stocks that respond to changes in the consumer prices (i.e., Consumer Price Index)
Answers:
high quality securities
stocks that respond to changes in the consumer prices (i.e., Consumer Price Index)
stocks included in an aggregate measure of stock prices
stocks of firms in a particular industry
Question 4
1 out of 1 points
Which of the following is not a consideration for investing in real estate investment trusts (REITs)?
Selected Answer: the federal tax rate paid by the trust
Answers:
fluctuations in dividend payments
excessive use of debt financing by some REITs
fluctuating interest rates affecting securities valuations
the federal tax rate paid by the trust
Question 5
1 out of 1 points
Closed-end investment companies
1.
have a fixed capital structure
2.
issue new stock whenever an individual buys shares
3.
may sell for a premium over net asset value
4.
must sell for their net asset value
Selected Answer: 1 and 3
Answers:
1 and 3
1 and 4
2 and 3
2 and 4
Question 6
1 out of 1 points
No load mutual funds may increase fees through
1.
sales charges
2.
commissions
3.
12b-1 plans
Selected Answer: only 3
Answers:
1 and 2
1 and 3
2 and 3
only 3
Question 7
1 out
Which of the following is excluded from an individual's cash budget?
Selected Answer: social security tax payments
Answers:
wages and salary
retirement account
social security tax payments
alimony
Question 2
0 out of 1 points
One means to adjust for risk is
Selected Answer: to divide each funds' return by the return on the market
Answers:
standardize funds' return by their beta coefficients
compute their rates of return including both income and capital gain distributions
standardize funds' costs by an aggregate index of mutual fund expenses
to divide each funds' return by the return on the market
Question 3
0 out of 1 points
An index fund limits its portfolio to
Selected Answer: stocks that respond to changes in the consumer prices (i.e., Consumer Price Index)
Answers:
high quality securities
stocks that respond to changes in the consumer prices (i.e., Consumer Price Index)
stocks included in an aggregate measure of stock prices
stocks of firms in a particular industry
Question 4
1 out of 1 points
Which of the following is not a consideration for investing in real estate investment trusts (REITs)?
Selected Answer: the federal tax rate paid by the trust
Answers:
fluctuations in dividend payments
excessive use of debt financing by some REITs
fluctuating interest rates affecting securities valuations
the federal tax rate paid by the trust
Question 5
1 out of 1 points
Closed-end investment companies
1.
have a fixed capital structure
2.
issue new stock whenever an individual buys shares
3.
may sell for a premium over net asset value
4.
must sell for their net asset value
Selected Answer: 1 and 3
Answers:
1 and 3
1 and 4
2 and 3
2 and 4
Question 6
1 out of 1 points
No load mutual funds may increase fees through
1.
sales charges
2.
commissions
3.
12b-1 plans
Selected Answer: only 3
Answers:
1 and 2
1 and 3
2 and 3
only 3
Question 7
1 out