QUESTION If Jorge takes Felicia’s advice, what is the most important information to learn before he places an order? A) What is the difference between a futures contract and a commodity exchange? B) Can commodities be traded as part of an exchange-traded fund? C) What market factors might make a given commodity rise in price […]
QUESTION What is the point at issue between Amatriya and Tatsuya? A) Which investment strategy should Amatriya and Tatsuya use to manage their portfolio? B) How much money do they need in their portfolio to support the post-retirement lifestyle they plan to have? C) Can growth stocks increase in value more rapidly than blue-chip stocks? […]
QUESTION Which of the following, if true, most weakens Tatsuya’s argument? A) Tatsuya is an economics professor with a clear understanding of investments. B) Forbes magazine is respected by many investors as a source of sound financial advice. C) Just before the recession, their broker recommended that they move funds from stocks to bonds. D) […]
QUESTION Which of the following is the most important assumption that underlies Brandon’s advice? A) The industries represented by BoxCorps and Excelsior are likely to grow at the same rate in the next few years. B) Overall, stock market indices like NASDAQ and the Dow Jones are likely to grow to new highs in the […]
QUESTION Which of the following assumptions most clearly underlies Darrell’s plan? A) Most young employees are willing to save small amounts of every paycheck toward their retirement. B) Over the long haul, stock-weighted portfolios will clearly outperform bond-weighted portfolios. C) Recent stock market crashes are the main reason most young employees are reluctant to invest […]
QUESTION Which of the following points out a hidden flaw in Darrell’s thinking? A) In addition to owning mutual funds, many young investors purchase individual stocks through discount brokers. B) While the stock market declined sharply in 2008-2009, it came back strongly in 2010-2011. C) In recent years, investments in precious metals have appreciated more […]
QUESTION Which of the following, if true, weakens Darrell’s management strategy? A) Economics experts predict that Social Security will be bankrupt by 2050. B) Surveys show that four out of five young investors are mostly interested in long-term returns. C) Bonds have outperformed stocks by 8 percent over the last ten years. D) The savings […]
QUESTION The Dow Jones Industrial Average gets the most attention from the mainstream press. Large drops or increases in the average, or achieving numerical milestones, are often big news stories. So why do industry professionals and educated investors feel the Dow doesn’t accurately represent the market? What will be an ideal response? ANSWER Answer: […]
QUESTION Which of the following, if true, most directly strengthens Darrell’s strategy? A) Fewer than 15 percent of young investors check the performance of their mutual funds regularly. B) Darrell has more than 25 years’ experience in financial management. C) Government and investment-grade bonds have a very low probability of default. D) Each time Leonid […]
QUESTION What is a stock market indicator? What will be an ideal response? ANSWER Answer: A stock market indicator is an index of stock market prices of groups of stocks. The stocks included in an indicator must be related, such as technology stocks. Explanation: A stock market indicator is an index of stock market […]
