All employees are eligible for Keogh plans. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which combination of assets is likely to be most effective in reducing portfolio risk? A) Two stocks in the same industry, such as GM and Ford B) Two stocks in the same country, such as GM and IBM C) Two precious metals, such as gold and silver D) One precious metal and one stock, such […]
Date: September 19th, 2020
Generating reasonable assumptions is one of the most critical aspects of pro forma analysis. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A secondary beneficiary is a contingent beneficiary. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The returns on Asset A are strongly, negatively correlated with Asset B’s returns; thus, holding the two assets together will A) significantly reduce portfolio risk. B) significantly increase portfolio risk. C) have little or no effect on portfolio risk. D) significantly reduce portfolio return. ANSWER A
Date: September 19th, 2020
Pulse Plastics Inc. realized a decrease in net plant and equipment from last year’s balance sheet to this year. If the firm did not sell or salvage any existing plant and equipment, which of the following statements MUST be true? A) The firm made no additional plant and equipment purchases. B) The firm’s plant and […]
Date: September 19th, 2020
You may only specify one person as a primary beneficiary. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following statements concerning flexible spending accounts is false? A) They are also known as cafeteria plans. B) Unspent funds may be held over for subsequent years. C) Employees may voluntarily contribute pretax dollars to this account. D) Expenditures from the account are subject to IRS restrictions. ANSWER B
Date: September 19th, 2020
You can borrow from your IRA, thus avoiding early withdrawal penalties. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which explanation below is most appropriate in explaining why diversification can reduce investment risk? A) The greater the number of assets held, the greater the portfolio return. B) The greater the risk taken, the greater the portfolio return. C) Asset returns are often poorly correlated. D) Asset returns tend to be stable over time. […]
Date: September 19th, 2020
