QUESTION Which of the following, if true, most directly supports Brett’s position, that Olympic Daniels should purchase a large share of the Textmoor IPO? A) Textmoor’s tablet is designed to be significantly more efficient and versatile than its competitors’ products. B) Due to their high testosterone levels, males make more aggressive stock decisions than females. […]
QUESTION Which of the following, if true, is most helpful in resolving the difference of opinion between Brett and Latisha? A) A prototype of Textmoor’s tablet was displayed recently at a major international technology fair. B) Most investment banks in the last decade have profited by handling info-tech IPOs. C) Two other investment banks have […]
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 Ron has entered the high-stakes world of commodities trading. On April 1, he signed a futures contract to buy 200 metric tons of soybeans on October 1 at $526 per metric ton. The current price is $485 per metric ton. What will the price be on October 1 for Ron to join the rarefied […]
QUESTION What is diversification from an investment perspective? What will be an ideal response? ANSWER Answer: Diversification is owning a variety of different securities types in an investment portfolio. Following this approach means that a serious decline in the value of a particular security will not have a dramatic impact on the entire portfolio. […]
QUESTION Which of the following lists investment strategies in order from lowest risk to highest risk? A) investing for growth < buying and holding < market timing < investing for income < value investing B) buying and holding < investing for income < investing for growth < value investing < market timing C) value investing […]
QUESTION When the U.S. housing market recovers after the Great Recession and homes are being built at a rapid pace, this will have a direct impact on the price of which commodity? A) gold B) coffee beans C) appliances D) lumber E) gasoline ANSWER Answer: D Explanation: D) In an economic expansion that is […]
QUESTION Which of the following would NOT be traded in a commodities exchange? A) eggs B) silicon chips C) soybean oil D) gold E) wool ANSWER Answer: B Explanation: B) Commodities are raw materials and agricultural goods used to produce other goods.
QUESTION Edna and Stan are both recently retired and need to reallocate their investments. Which of the following is the best portfolio mix to meet their needs? A) 75% growth stocks, 15% blue chip stocks, 10% bonds B) 50% growth stocks, 45% blue chip stocks, 5% cash C) 50% blue chip stocks, 25% bonds, 25% […]
