An unattractive feature of U.S. corporate bonds is that there is no secondary market and the investor is forced to hold the bond until maturity. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
One performance measure of a mutual fund is to determine the growth of a given amount of investment, assuming all fund distributions are used to buy more shares of the fund. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
There are tax penalties for A) early withdrawals from an IRA, but not for late withdrawals. B) late withdrawals from an IRA, but not for early withdrawals. C) both early and late withdrawals from an IRA. D) early withdrawals on company-sponsored pension plans, but not on IRAs. ANSWER C
Date: September 19th, 2020
A policy that reimburses you for losses at actual cash value will pay you an amount equal to A) replacement cost. B) replacement cost plus depreciation. C) replacement cost minus depreciation. D) depreciation. ANSWER C
Date: September 19th, 2020
Which of the following is NOT one of the three key value drivers behind the EVA approach? A) Net operating profits after tax (NOPAT), which are similar to part of the free cash flow concept, EBIT × (1 – t). B) The investment in net working capital. C) The investment in capital. D) The cost […]
Date: September 19th, 2020
Just as a yield to maturity can change on a day-to-day basis, so can a preferred stock share’s dividend yield. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
IRA funds may be withdrawn without penalty at A) age 59-1/2. B) age 64-1/2. C) age 69-1/2. D) any age. ANSWER A
Date: September 19th, 2020
Given the same face amount of insurance protection, which of the following would have the most rapid cash value build-up? A) Renewable term insurance B) Whole life insurance C) Limited payment ordinary life insurance D) Modified whole life insurance ANSWER C
Date: September 19th, 2020
Under most homeowners’ policies compensation for structural damage is at A) replacement cost. B) replacement cost plus depreciation. C) actual cash value. D) market value. ANSWER A
Date: September 19th, 2020
A mutual fund’s reinvestment plan allows you to buy additional shares in a fund from the fund’s dividends. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
