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 151. The collection of investments you select to satisfy your investment purposes is dubbed your .152. The axiom that explains diversification is .153. Diversification should
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 131. The advisable dollar coverage for any one auto accident is no much less thana. $50,000.b. $100,000.c. $200,000.d. $300,000.e. $500,000.132. The best place to buy car insurance isa. insurance agentb. auto dealerc. finance companyd. state insurance commissione. none of the above133. Section I of a homeowner’s insurance policy covers all of the complying with excepta. individual liabilityb. dwellingc. various other structuresd. personal property134. The principle of states that.


 1. Market danger considers the opportunity that the firm might fail.a. Trueb. False2. Changes in the value of securities because of social, political, or financial factors are referred to as industry danger.a. Trueb. False3. A firm through low financial hazard has actually little bit to no irreversible debt.a. Trueb. False4. Purchasing power hazard is of the majority of concern throughout financial recession.a. Trueb. False5. Interemainder price threat.


 141. Past retransforms on an investment are of future retransforms.142. Preferred stockholders will receive their share of agency revenue bond interest is passist.143. Common stockholders will certainly receive their share of firm income bond interemainder is passist.144. Stock dividends represent income.145. Dividfinish income.


 81. An instance of event hazard would certainly bea. inflation.b. a corpoprice takeover.c. a newspaper post around the economic situation.d. revenue announcements.e. capital growth.82. Risk and also rerotate are ____ associated.a. inverselyb. directlyc. slightlyd. oppositely83. Bond prices and market interest rates are ____ associated.a. inverselyb. directlyc. slightlyd. positivelye. none of the above84. Assume you're contemplating the purchase of a $1,000, 6% annual coupon income bond through 5 years staying to maturity.


 91. Which of the adhering to ideal explains the personal residential property floater?a. An endorsement providing coverage for items of expensive individual building not adequately extended under the typical homeowners plan.b. An addition to the automobile plan intended to cover items of personal residential property that are frequently in or upon a extended automobile.c. A specialized inland.


 141. Many HO policies contain a clause requiring you to carry insurance equal to a minimum percent of the replacement worth of your home in order to be paid in full for little losses.142. Your home has actually a replacement worth of $120,000. Your HO plan has actually an 80%.


 11. Owning prevalent stock represents a debt investment.a. Trueb. False12. Common stock pays interemainder payments on a quarterly basis.a. Trueb. False13. Usual stock mainly allows the stockholder an equal vote in electing the management of the corporation.a. Trueb. False14. Securities may be traded in the main market just when.a. Trueb. False15. Newly issued securities are marketed to the public in the additional market.a. Trueb. False16. A.


11. Owning prevalent stock represents a debt investment.a. Trueb. False12. Usual stock pays interestFinance

 161. You are trying to find a guaranteed secure stream of income; you have to invest in .162. ACE, Inc. has actually a industry capitalization of $500 million. It would be classified as a .163. Treasury securities are yielding 6%. A growth stock via an meant rerotate of 8%

 51. Diversification increases threat.a. Trueb. False52. A reworn down couple deserve to probably bear more threat in their portfolio than a young investor with a secure task.a. Trueb. False53. Tright here is mostly a trade-off in between earning a high current earnings from an investment and also obtaining considerable funding appreciation from it.a. Trueb. False54. Once one's ascollection alplace arrangement is arisen and also securities are.


51. Diversification increases threat.a. Trueb. False52. A reworn down couple have the right to more than likely bear even more riskFinance

 81. The ____ is not an organized security exadjust.a. New York Stock Exchangeb. American Stock Exchangec. Midwest Stock Exchanged. Pacific Stock Exchangee. OTC Exchange82. Unnoted securities are traded on thea. SEC sector.b. SICOMPUTER.c. OTC market.d. AMEX.e. NYSE.83. The federal federal government regulates securities markets through thea. Department of Commerce.b. Federal Reserve System.c. National Association of Securities Dealers.d. Securities and Exadjust Commission.e. Federal Securities Agency.84. A bull sector is defined bya. investor.


 151.  tenants lug renters insurance.152. If your furniture in your rented apartment is damaged by a fire, it be extended by your landlord's plan.153. A renter's policy frequently carry out protection versus licapacity claims.154. If you are sued, the licapability percentage of your building.


 131. A sector is characterized by falling stock prices.132. A industry is identified by rising stock prices.133. A deep discount broker will certainly execute orders and .134. The Securities Investors Protection Corporation would certainly make payment to.


 174. Jorge and also Nancy had actually a $30,000 repair bill on their home after the tornaperform went with town. Their policy had the usual 80% co-insurance clausage. Their home's replacement value was $150,000; their policy coverage was $110,000 via a $250 deductible. a.How much insurance need to they have carried to fulfill the co-insurance.


 61. In regards to sector capitalization, Apple is the largest agency in the world.a. Trueb. False62. Based on a retired person's needs, one must pick investments offering high present revenue with high risk.a. Trueb. False63. Exchange-traded notes (ETNs) challenge both market risk and the threat of the issuing financial institution defaulting.a. Trueb. False64. ____ is a momentary investment activity.a. Buying life insuranceb. Buying.


 21. Publicly traded issues are just obtainable to qualified investors.a. Trueb. False22. Historically, the long-term performance of stock outstrips that of bonds.a. Trueb. False23. You obtained a cash dividfinish from your stock investment this year. This is taxable earnings.a. Trueb. False24. Stock dividends are taxed at long-term resources gains prices.a. Trueb. False25. Common stocks pay a guaranteed dividend every year.a. Trueb. False26. Interemainder on corpoprice bonds.


21. Publicly traded concerns only obtainable to qualified investors.a. Trueb. False22. Historically, the long-termFinance

 121. Auto insurance premiums would certainly be influenced bya. the location in which you live.b. your driving document.c. form of vehicle.d. the distance of your day-to-day commute.e. all of these.122. If you have an excellent loan on your auto, the contract will require you to carry ____ insurance.a. bodily injury liabilityb. residential or commercial property damage liabilityc. clinical paymentsd. collision and also comprehensivee. every one of these123. Premium discounts.


 101. ____ stocks are really purchased as a gamble quite then because they have actually a proven background of good performance.a. Blue-chipb. Growthc. Cyclicald. Defensivee. Speculative102. A characteristic of protective stocks isa. revenue.b. secure income.c. stable dividends.d. expansion.e. price stcapability in financial decline.103. To a lot of stockholders, the main advantages of widespread stock investment area. attractive returns and active trading.b. attractive returns and also voting civil liberties.c. high dividends and.


 171.  a bond rating will certainly lead to higher current yields.172. If you buy a bond at a discount, its yield to maturity will certainly be than the coupon yield.173. Zero coupon bonds would certainly be even more appropriate for a .174. Annual interemainder income separated by.


 161. Monte wants to conserve for his daughter's college education and learning. He would certainly prefer to have actually $85,000 in 15 years. If Monte can earn an average of 8.5% on this money, exactly how a lot would certainly he have to deposit in the account this particular day to accomplish his goal?If Monte has no money to collection.


 101. Which of the complying with events would probably increase your auto premiums?a. Celebrating your 25th birthdayb. Getting marriedc. Trading in your 2004 Mercedes for a 2005 Ford Escortd. Increasing your collision deductiblee. Namong the above102. Homeowners' insurance will cover which of the following?a. The meter reader bitten by Cujo, your poodleb. Your attached garage damaged by Hurricane Ivanc. Your.


 21. A stockbroker buys and sells securities on befifty percent of clients.a. Trueb. False22. The Securities Investor Protection Corporation insurance promises the dollar value of your securities will not dip listed below a certain level.a. Trueb. False23. A round lot is composed of multiples of 100 shares of stock.a. Trueb. False24. A sale of 450 shares of stock would involve the profession of.


21. A stockbroker buys and sells securities behalf of clients.a. Trueb. False22. The SecuritiesFinance

 163. You have just bought (on 50% margin) 100 shares of IBM Corp. prevalent stock for $108 per share. One year from currently you expect to offer the stock for $140. The interest charge will be 9%. What rerotate perform you mean to earn on your investment? (Sexactly how all occupational. Ignore.


 111. A stock portfolio containing 80% common stocks is a lot of likely to be appropriate for aa. reexhausted couple who needs a high rerevolve.b. divorced middle-aged mom that demands a high rerevolve.c. blue-collar, two-income household with five youngsters.d. young newlywed couple putting money aside for retirement.e. A portfolio via 80% in prevalent stocks is not suitable for.


 121. Julie Johnson is in the 35 percent taxation bracket. If she were to purchase a $1,000 municipal bond that had a stated interemainder price of 6.5%, the completely taxable identical yield would certainly bea. 6.50%.b. 9.03%.c. 9.24%.d. 10.00%.e. 10.51%.122. When industry interest rates climb, bond prices willa. return to a stable price.b. increase.c. autumn.d. vary unpredictably.e. not be influenced.123. The approximate yield to.


 71. The a lot of widespread factor provided for investing isa. boosting present earnings.b. conserving for retirement.c. sheltering revenue from taxes.d. paying for an expensive vacation.e. conserving for college education.72. During a bear market, security prices generallya. organize valueb. swiftly boost in valuec. reprimary neutrald. decrease in valuee. consoliday in value73. Investment vehicles includea. prevalent stock.b. bonds.c. preferred and convertible securities.d. real estate.e. every one of these.74. You have been offered an.


 41. A brief sale transactivity will be profitable when prices are falling.a. Trueb. False42. The margin necessity for prevalent stock is 50%.a. Trueb. False43. Trading on margin deserve to magnify both losses and also profits.a. Trueb. False44. A corporation's yearly stockholders' report gives financial information and also various other indevelopment regarded both previous and also planned tasks.a. Trueb. False45. The most extensively adhered to measure of stock sector.


 131. Your convertible bond has a convariation ratio of 15. The existing sector price of the common stock is $50/share. The conversion worth of this bond isa. $150.b. $500.c. $650.d. $750.e. $900.132. The finest returns in the stock sector will certainly be accomplished bya. staying completely invested.b. absent the five ideal months.c. absent the ten finest months.d. absent the fifteenager finest months.e. absent.


 1. Investing is taken into consideration a momentary task that requires the buying and also marketing of securities.a. Trueb. False2. Investing and speculating are 2 completely different tasks.a. Trueb. False3. Mutual funds carry out expert administration and diversification that individual investors - especially those with limited sources - have the right to seldom attain on their very own.a. Trueb. False4. A organized investment program involves investing similar sums.


 111. Which of the adhering to would certainly be a disadvantage of owning an earnings stock?a. High and growing dividendsb. High yet decreasing dividendsc. Lower development potentiald. High potential for funding growthe. Tend to be solid blue-chip stocks112. Advanteras of a dividend reinvestment arrangement can includea. stock marketed at a discount.b. guaranteed price of rerotate.c. taxation benefits.d. free of brokerage comgoals.e. a and also d.113. A.


 91. An immediate order to buy or sell common stock at the ideal price is aa. speak order.b. sector order.c. limit order.d. stop-loss order.e. discount order.92. Instructing your broker to buy a stock at a mentioned or reduced price is aa. limit order.b. sector order.c. margin order.d. continual order.e. stop order.93. Buying on margin is buyinga. at the lowest price.b. at the industry price.c. with a.


 175. Jim shed manage of his automobile. He wiped out the automobile in front of him, hit a pedestrian, and also then drove right into a house. Jim has auto licapability insurance of 25,000/50,000/10,0000. He also has actually medical payments coverage of $1,000 and a $250 deductible on his collision coverage. The adhering to damages.


 164. You have inherited $250,000. You have made a decision that because you don't need the money currently, you must invest for the long-term. After seeking advice, you decide on an ascollection allocation arrangement that puts 10% in temporary securities, 75% in equities, and also 15% in bond funds. How a lot money would certainly you.


 61. Preferred stockholders have no equity in the issuing firm.a. Trueb. False62. Convertible desired stock can be exreadjusted for prevalent stock.a. Trueb. False63. A bond through an S&P rating of BBB is taken into consideration investment-grade.a. Trueb. False64. Junk bonds have actually better threat and equivalent returns to investment grade bonds.a. Trueb. False65. At the time you buy a convertible bond, you will know the number.


61. Preferred stockholders have no equity in the issuing firm.a. Trueb. False62. Convertible preferredFinance

 91. Cash dividends on common stock are most often paida. weeklyb. monthlyc. quarterlyd. semiannuallye. annually92. U-Need-This has actually $12 million liabilities, $12 million preferred stock, 10 million shares of prevalent stock superior, and $39 million in complete assets. The book value isa. $2.00 per share.b. $4.30 per share.c. $4.10 per share.d. $1.50 per share.e. none of the over.93. Anderchild, Inc. has $10 million liabilities,.


91. Cash dividends common stock many frequently paida. weeklyb. monthlyc. quarterlyd. semiannuallye. annuallyFinance

 31. Low price/revenue ratios show restricted or low investor confidence.a. Trueb. False32. Stocks through betas of less than 1.0 will certainly have reasonably secure prices.a. Trueb. False33. Stocks with high betas will certainly have actually low price volatility.a. Trueb. False34. A stock's beta is an indication of exactly how responsive the stock is to changes in the as a whole stock sector.a. Trueb. False35. Incomes per share deserve to be.


31. Low price/revenue ratios indicate limited or low investor confidence.a. Trueb. False32. Stocks withFinance

 161. The theft of your favorite jacket from your locked car taken treatment of by your renter's policy.162. Sally drove Jessie's auto to the mall and also was associated in an accident that was her fault. The major auto insurance that will certainly cover this accident is

 121. A convertible bond would let the investor exchange it for stock.122. Short-term securities are traded in the market.123. The issuer of the protection would certainly get no money from a trade in the industry.124. The

industry is wright here new securities are marketed.


 151. The stock sector all at once has actually a beta of <+1.0 | −1.0>.152. The lower a stock's beta, the volatile you deserve to suppose its price fluctuations to be.153. More speculative investors would certainly favor stocks via betas.154. One must look for carriers through steadily book.


 101. The smallest round lot of stocks quoted at 23.25 would certainly price you (ignoring commissions)a. $23.25.b. $232.50.c. $2,325.00.d. $23,250.00.e. namong these.102. A collection of investments is calleda. a letter of exposure.b. a diversification.c. a grouping.d. an envelope.e. a portfolio.103. A diversified securities portfolio is defined bya. discomparable danger and rerotate characteristics of the securities.b. concentrating on a single industry.c. minimal loss potential.d. secure earnings.e. formula timing.104. ____ is.


 141. If you want to collection a certain price in your order, you will certainly use a order.142. You are going to buy stock on margin. You will certainly be forced to put up a minimum of <50 | 60> percent of the money needed to make the purchase.143. Margin needs are.


 51. Investors frequently welcome their bonds being referred to as bereason of the generous contact premium paid.a. Trueb. False52. The callable feature of a bond protects the issuer once market interest prices are falling.a. Trueb. False53. TIPS are correct for investors who are conservative and also concerned around inflation.a. Trueb. False54. All treasury bonds issued today are noncallable.a. Trueb. False55. If you buy a zero coupon.


 41. The worth of any type of investment is a function of the rerotate it is supposed to produce relative to the amount of perceived threat involved in the investment.a. Trueb. False42. Dividend reinvestment plans carry out shareholders through cash so that they can invest in equivalent stocks.a. Trueb. False43. Normally, the ideal time to invest in the stock industry.


 162. Abe owns 1,000 shares of Amazon, which he purchased for $12 per share 3 months back. Abe simply checked the price of Amazon and uncovered that it is marketing for $19 per share. He is so excited about his obtain that he has booked a $6,000, 20-day expedition to Hawaii.


 71. The standard principles of residential or commercial property and licapacity insurance pertain to:a. types of exposureb. the values of indemnityc. coinsuranced. every one of the above72. Some widespread licapability dangers include:a. driving a carb. entertaining guests at homec. being careless in percreating experienced dutiesd. every one of the above73. The ascollection many likely to be particularly itemized in an individual property floater isa. sofa.b. clothing.c. jewelry.d. garden equipment.e. all of.


 31. According to current legislation, under the FDIC each brokerage account is insured as much as $250,000.a. Trueb. False32. An odd lot transactivity is generally more expensive than a round lot transactivity.a. Trueb. False33. Tbelow are 50 shares in a round lot.a. Trueb. False34. Brokers charge a commission on protection purchases and on defense sales.a. Trueb. False35. Discount brokers discount the price.


 111. Persons insured under Part B clinical payments coverage includea. the called insuredb. family members members in the auto.c. any guest occupying the auto.d. a and be. a, b, and also c112. To mitigate auto insurance premiums as your auto depreciates in value, you have to think about self-insuring which of the adhering to risks?a. bodily injury liabilityb. collisionc. residential property damages liabilityd. detailed (various other than collision)e. b.


 71. The yields on municipal bonds are typically greater than the retransforms accessible from completely taxable issues.a. Trueb. False72. When a bond is sold in between coupon payment days, the buyer pays the seller for the accrued interest.a. Trueb. False73. The frequently cited price for a bond is generally its clean bond price.a. Trueb. False74. A beta of even more than one.


 81. Donna, that is single and also 30 years old, has obtained numerous speeding tickets newly and also was shocked by the impact on her auto insurance. Donna drives a 2004 Pontiac Firebird, is presently not covered by wellness insurance, has an emergency fund of $25,000, an revenue of $100,000 per year, and also.

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 11. A reduced meant rerotate will certainly expect a higher threat will certainly have to be embraced.a. Trueb. False12. In the majority of investments, there is a risk-rerotate tradeoff.a. Trueb. False13. All securities involve danger of some type.a. Trueb. False14. Common stockholders are entitled to a prorated share of a company's income only after every one of the firm's various other responsibilities have actually been met.a. Trueb. False15. An investment.