Question 401.78 pts

What is a difference between a futures contract and an options contract?

Group of answer choices

With a future you will have to come up with additional cash if the value of the contract drops

Futures rarely involve delivering the asset that is the object of the contract

Futures do not involve leverage

Options always have longer maturities than futures

Flag question: Question 41

Question 411.78 pts

What is a general obligation municipal bond?

Group of answer choices

a bond that is backed by the full taxing power of the city or the state

a bond that is paid for out of the proceeds earned by the underlying project

a bond that has an inferior credit rating

a bond that has a superior credit rating

Flag question: Question 42

Question 421.78 pts

What deal did the federal government and state governments make regarding each others bonds?

Group of answer choices

not to sell to the same investors

not to allow interstate marketing

not to charge commissions on sales

not to tax the interest

Flag question: Question 43

Question 431.78 pts

What is a junior or subordinated bond?

Group of answer choices

a short term bond

a long term bond

a bond with a higher credit rating

a bond that has a lower likelihood of paying in the event of a bankruptcy

Flag question: Question 44

Question 441.78 pts

What is a synonym for stock or equity?

Group of answer choices

liability

ownership

debt

fairness

Flag question: Question 45

Question 451.78 pts

Which of the following is not a characteristic of equity?

Group of answer choices

right to income

right to vote on important issues

right to be repaid in the event of a bankruptcy

right to proceeds from the sale of assets

Flag question: Question 46

Question 461.78 pts

What is a major difference between an ETF and a mutual fund?

Group of answer choices

ETFs always have lower fees than mutual funds

ETFs can be traded at any time during a trading session

ETFs perform better than mutual funds

ETFs do not charge management fees

Flag question: Question 47

Question 471.78 pts

What is something an investor should not expect to get from a mutual fund?

Group of answer choices

Instant diversification

Professional investment management

Record keeping of the value of your holding

Have trades executed when they are submitted

Flag question: Question 48

Question 481.78 pts

What must an open-ended mutual fund do if investors want to buy new shares after the initial offering their shares?

Group of answer choices

Nothing

Issue new shares

Charge a sales fee

Pay taxes on the gain or loss

Flag question: Question 49

Question 491.78 pts

What must a closed ended fund do if investors want to sell their shares?

Group of answer choices

Nothing because they trade on an exchange

Have cash on hand or sell securities

Charge a sales fee

Pay taxes on the gain or loss

Flag question: Question 50

Question 501.78 pts

What is a publicly traded REIT?

Group of answer choices

a private real estate investment

a type of bond

an investment company that invests in real estate

a real equity investment time-share

Flag question: Question 51

Question 511.78 pts

Which of the following is not a characteristic of an alternative investment?

Group of answer choices

superior risk-adjusted returns

lack of liquidity

high fees

difficulty determining performance

Flag question: Question 52

Question 521.78 pts

Which of the following is not a characteristic of a MLP?

Group of answer choices

they pay no federal income taxes

they pay large dividends

they are liquid

they have low volatility

Flag question: Question 53

Question 531.78 pts

Which of the following is not a characteristic of a hedge fund?

Group of answer choices

managers receive a % of the gains on the investments

they have less regulatory over-sight

they generate superior risk-adjusted returns

they often short securities and use leverage

Flag question: Question 54

Question 541.78 pts

What is the average rate of return in the U.S. stock market over the last 100 years?

Group of answer choices

10 12%

12 14%

8 10%

6 8%

Flag question: Question 55

Question 551.78 pts

What is the average annual standard deviation of U.S. stock indexes?

Group of answer choices

10 12%

14 18%

20 26%

22 36%

26 40 %

Flag question: Question 56

Question 562.1 pts

What measure expresses how expensive a stock is?

Group of answer choices

Price

Multiples

Cash flow

Interest rates