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 […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, BEST supports Amatriya’s approach to augmenting the couple’s retirement savings? A) Forbes magazine reports that economic markets indicate that the European economy is about to enter an extended period of decline. B) Over a ten-year period, an aggressive growth-oriented portfolio usually outperforms a more conservative one. C) Many […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, most clearly undercuts Brandon’s advice? A) Aside from BoxCorps, all of the club’s previous choices have advanced in value. B) The father of one club member, who is a broker, thinks Circuits Unleashed is a wiser choice. C) BoxCorps has announced plans to open 100 new locations nationwide. […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, LEAST supports the decision to sell BoxCorps and purchase Excelsior as a prudent financial move? A) BoxCorps recently split its shares by two-for-one, so the club now owns twice as many shares of its stock as before. B) The club owns preferred stock of BoxCorps, while the shares […]
Date: September 3rd, 2020
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: […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
QUESTION What is the point at issue between Larisa and Karola? A) Does the Internet provide accurate and reliable information on investments? B) Should they pay a broker extra to recommend an investment for them? C) Should they invest their money in stocks or bonds? D) Is Merrill Lynch a reliable source of investment advice? […]
Date: September 3rd, 2020
QUESTION What type of securities order condition demonstrates the highest degree of faith in a broker’s capabilities? What will be an ideal response? ANSWER Answer: A discretionary order allows a broker to decide the best time and price for selling or buying a security. A client who places a discretionary order trusts the broker […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, most clearly weakens Karola’s point of view? A) People who use discount brokers often purchase stocks, which carry a greater risk than bonds or money market instruments. B) The department manager for whom the two work recently made several thousand dollars on an investment made through E-Trade. C) […]
Date: September 3rd, 2020
