0. There are about _____ exchange-traded funds. (Points : 1) 25 50 150 775 1,000

Question 11. 11. A corporation selling stock is obligated to: (Points : 1)

guarantee the shareholders' investment. repay money obtained from the sale of that stock. repurchase shares of stock at a later date. pay dividends to the common shareholders. pay dividends to preferred stockholders prior to common stockholders.

Question 12. 12. A stock that follows the business cycle of advances and declines in the economy is called a(n) ____________ stock. (Points : 1)

defensive cyclical growth income blue-chip

Question 13. 13. Audrey is thinking about an investment that involves buying a written pledge by a corporation to repay a specified amount of money. It also pays interest every 6 months until it matures. What investment is Audrey thinking about purchasing? (Points : 1)

common stock preferred stock corporate bond real estate mutual fund

Question 14. 14. Acme Widget, Inc. has 1,000 shareholders who own a total of one million shares of its common stock. The stock currently sells for $85 per share. The company earned $5 million after taxes. The annual dividend is $0.50 per share. The firm has assets of $125 million and liabilities of $25 million. What is the P/E ratio? (Points : 1)

10 11 13 17 20

Question 15. 15. Which one of the following statements is false? (Points : 1)

Many investors have found a wealth of information about mutual fund investments on the Internet. It is possible to obtain market values for a mutual fund by using the Internet. Most investment companies that sponsor mutual funds have a Web page. Professional advisory services are prohibited from discussing mutual funds on their Web pages. A mutual fund's Web site will provide information about how to open an account, current market quotes, and specific fund information.

Question 16. 16. Common stock dividends are paid out of profits and: (Points : 1)

must be approved by the firm's board of directors. are guaranteed to be paid quarterly. are paid prior to the firm's taxes. usually paid semi-annually. equal 100 percent of the firm's annual earnings.

Question 17. 17. When investors purchase bonds that mature at regular intervals in order to balance risk and return, they are creating a: (Points : 1)

bond ladder. staggered investment program. incremental investment program. step-up allocation program. guaranteed investment program.

Question 18. 18. Sandra Peterson has been thinking about investing in corporate bonds. She is concerned about safety and wants the most secure bond investment possible. She would most likely invest in ____________ bonds. (Points : 1)

debenture mortgage speculative convertible subordinated

Question 19. 19. Which one of the following statements is true? (Points : 1)

Convertible corporate bonds are more secure than government bonds. Convertible bonds often pay 3 to 4 percent more interest than nonconvertible bonds. Because of the conversion feature, it is not necessary to evaluate convertible, corporate bonds. There is no guarantee that bondholders will convert to common stock even if the market value of the common stock does increase in value. Even if convertible bondholders convert their investment to common stock, the bondholders still receive interest payments.

Question 20. 20. A short-term investment objective is one that will be accomplished within a period of: (Points : 1)

one year or less. two to five years. more than five years. three years or less. two years or less.