FP 100 Week 5 Quiz | Assignment Help | University Of Phoenix
- University of Phoenix / FP 100
- 01 Sep 2020
- Price: $13
- Other / Other
FP 100 Week 5 Quiz | Assignment Help | University Of Phoenix
FP 100 Week 5 Exam
Question 1
Traci knows that the
price of an issue of preferred stock is $150, and she knows that the dividend
is $20 per year. What is her dividend yield?
o
13.3%
o
1.3%
o
7.5%
o
30%
Question 2
Bonds that are rated
BBB or better by Standard & Poor's are referred to as
o
risk-free bonds.
o
recession-proof bonds.
o
investment-grade bonds.
o
junk bonds.
Question 3
When an investor asks a
broker to place a market order, the investor is offering to buy the stock at
o
a maximum price at the time the trade is
made.
o
the current market price at the time the
trade is executed.
o
a predetermined price at the time the
order is carried out.
o
a minimum price at the time of the
trade.
Question 4
What feature of
preferred stock allows issuers to buy back their shares?
o
callability
o
portability
o
convertibility
o
par value
Question 5
Which of the following
statements regarding bonds and inflation risk is true?
o
Long-term bonds have less inflation risk
than short-term bonds.
o
Bonds are less influenced by inflation
risk than are common stocks.
o
Bond investors will require higher
yields on bonds if inflation rises.
o
Rising inflation will generally cause
bond prices to also rise.
Question 6
When brokers engage in
excessive trading of customers accounts in order to increase their commissions,
this is called
o
whipsawing.
o
discretionary trading.
o
insider trading.
o
churning.
Question 7
Aeryn Soon is a
potential investor of Hippy Dippy Inc.’s preferred stock, which is currently
selling for $475 per share. Hippy Dippy pays an annual dividend of $40, and
Aeryn’s required return is 8 percent. Should she purchase this preferred stock
or NOT? Why?
o
Yes, because the value of the preferred
stock is $500.
o
No, because the value of the preferred
stock is $250.
o
Yes, because the value of the preferred
stock is $250.
o
No, because the value of the preferred
stock is $500.
Question 8
The over-the-counter
(OTC) securities market is a/ an
o
electronic securities market where
securities are bought and sold.
o
physical location used by companies to
buy back securities from the public.
o
electronic network used by corporations
to sell securities to the general public.
o
physical location for trading securities
through securities dealers.
Question 9
Which of the following
portfolio strategies is the most risky?
o
Investing equally in 20 stocks that are
all in different industries
o
Investing 100 percent in a blue chip
manufacturing company
o
Investing 100 percent in a small-cap
technology company
o
Investing 50 percent each in a small-cap
technology company and a blue chip manufacturing company
Question 10
A written agreement
that gives your common stock voting rights to someone else is known as a
o
forfeit agreement.
o
voting assignment.
o
pre-emptive right.
o
proxy.
Question 11
The most common
arrangement for bond coupon payments is
o
fixed-rate interest paid in semiannual
payments.
o
floating-rate interest paid in annual
payments.
o
zero-coupon payments.
o
indexed-rate payments.
Question 12
Dell is an American
computer company. The founder, Michael Dell, and global technology investment
firm, Silver Lake Partners, own all of the shares of Dell. It is not possible
to buy shares of Dell stock on the secondary market because Dell is a
o
partnership.
o
private corporation.
o
sole proprietorship.
o
public corporation.
Question 13
A life-cycle fund
purchases assets designed to meet the needs of individuals in
o
retirement only.
o
middle-income earning years.
o
a particular stage of life.
o
high-income-earning years.
Question 14
Financing the purchase
of an investment in real estate with a mortgage at the time of borrowing at a
low rate of interest and investing in assets that earn more than what they cost
puts you ahead of the game due to the concept of
o
leverage.
o
diversification.
o
return on investment.
o
price appreciation.
Question 15
A closed-end fund is an
investment company that
o
sells a variable number of shares based
on public demand and buys them back on demand.
o
issues a fixed number of shares that are
bought back by the company.
o
sells a variable number of shares that
are traded in the secondary market.
o
issues a fixed number of shares that
trade on a stock exchange or in the over-the-counter market.
Question 16
ABC Fund has 9 million
shares outstanding. The fund's portfolio is now valued at $300 million and the
fund owes $18 million to the fund advisors and $5 million for rent and wages.
What is the net asset value of the fund?
o
$30.78
o
$31.33
o
$33.00
o
$34.78
Question 17
Sometimes called a
hybrid fund, the ________ fund provides investors the opportunity to benefit
from stocks and bonds.
o
balanced
o
value
o
target date
o
life-cycle
Question 18
A socially responsible
fund is a type of mutual fund that invests only in securities issued by
companies that
o
meet certain ethical and moral
standards.
o
have securities that highly appreciate
in value.
o
pay high dividends.
o
produce a high total return.
Question 19
Gold values tend to
_________ during times of economic growth and stability and __________ during
times of economic and political uncertainty.
o
increase; decrease
o
decrease; increase
Question 20
Which fund
classification would a focus on only stocks of technology companies match?
o
Growth fund
o
Sector fund
o
Balanced fund
o
International fund
Question 21
Which statement is
false regarding exchange-traded funds?
o
Many exchange-traded funds are designed
to be index funds.
o
Exchange-traded funds are examples of
closed-end funds.
o
Share prices on an exchange-traded fund
are determined by market forces.
o
All of the choices are true.
Question 22
The net asset value of
a mutual fund that is worth $100 million, has liabilities of $5 million, and
has 5 million shares is
o
$100 million
o
$95 million
o
$19 per share
o
$1 per share
Question 23
Bonds that take cash flows from pools of
mortgages are called
o
mortgage-backed securities.
o
real estate investment trusts.
o
limited partnerships.
o
direct real estate investments.
Question 24
The basic equation for
real estate return on investment is the increase in value plus the net rental
income, minus the interest expense, all of which is divided by which financial
component?
o
beginning investment
o
capital appreciation
o
ending outlay
o
market price
Question 25
Which is the first step
out of the four steps in the mutual fund selection process?
o
Identify your investment objective.
o
Decide which fund classifications are
appropriate for your objective.
o
Compare funds based on risk and return,
costs, and services.
o
Buy shares in the selected funds.