Test Bank
Fundamentals Of Investing
By Scott B. Smart
14th Edition
,Table Of Content:
I. Preparing To Invest
1. The Investment Environment
2. Securities Markets And Transactions
3. Investment Information And Securities Transactions
Ii. Important Conceptual Tools
4. Return And Risk
4a. The Time Value Of Money
5. Modern Portfolio Concepts
Iii. Investing In Common Stocks
6. Common Stocks
7. Analyzing Common Stocks
8. Stock Valuation
9. Market Efficiency And Behavioral Finance
Iv. Investing In Fixed-Income Securities
10. Fixed-Income Securities
11. Bond Valuation
V. Portfolio Management
12. Mutual Funds And Exchange-Traded Funds
13. Managing Your Own Portfolio
Vi. Derivative Securities
14. Options: Puts And Calls
15. Commodities And Financial Futures
Web Chapters
16. Investing In Preferred Stocks
17. Tax-Advantaged Investments
18. Real Estate And Other Tangible Investments
,Fundamentals Of Investing, 14e (Smart)
Chapter 1 The Investment Environment
1.1 Learning Goal 1
1) A Non-Interest Bearing Checking Account Is Still Considered An
Investment. Answer: False
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
2) Land And Buildings Are Examples Of Real Property
Investments. Answer: True
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
3) Since 1900, The Average Return On Stocks Has Exceeded The Average Return On
Savings Accounts By More Than 6 Percentage Points.
Answer: True
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
4) A United States Savings Bond Is An Example Of An Investment As Defined In The
Text. Answer: True
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
5) Most Sources Of Investment Information Are In Print Format, Expensive, And
Difficult To Access.
Answer: False
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets
And Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking
Question Status: New Question
Learning Goal: Learning Goal 1
, 6) Which Of The Following Is Not An Investment As Defined In The Text?
A) A Certificate Of Deposit Issued By A Bank
B) A New Automobile
C) A United States Saving Bond
D) A Mutual Fund Held In A Retirement
Account Answer: B
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
7) Stocks Are A(N) Investment Representing Of A Business.
A) Direct; Ownership
B) Direct; Debt
C) Indirect; Ownership
D) Indirect;
Debt Answer:
A
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
8) An Exchange Traded Fund That Invests In The Stocks Of Large Corporations Is An Example
Of
A) Direct Investment.
B) Indirect Investment.
C) Derivative Investment.
D) Tangible
Investment.
Answer: B
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
9) Which Of The Following Has Declined In Recent Years?
A) Direct Ownership Of Stock By Individual Investors
B) The Percentage Of Foreign Stocks Held In Typical Portfolios
C) Institutional Ownership Of Common Stocks
D) The Timeliness Of Information Available To
Investors Answer: A
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Fundamentals Of Investing
By Scott B. Smart
14th Edition
,Table Of Content:
I. Preparing To Invest
1. The Investment Environment
2. Securities Markets And Transactions
3. Investment Information And Securities Transactions
Ii. Important Conceptual Tools
4. Return And Risk
4a. The Time Value Of Money
5. Modern Portfolio Concepts
Iii. Investing In Common Stocks
6. Common Stocks
7. Analyzing Common Stocks
8. Stock Valuation
9. Market Efficiency And Behavioral Finance
Iv. Investing In Fixed-Income Securities
10. Fixed-Income Securities
11. Bond Valuation
V. Portfolio Management
12. Mutual Funds And Exchange-Traded Funds
13. Managing Your Own Portfolio
Vi. Derivative Securities
14. Options: Puts And Calls
15. Commodities And Financial Futures
Web Chapters
16. Investing In Preferred Stocks
17. Tax-Advantaged Investments
18. Real Estate And Other Tangible Investments
,Fundamentals Of Investing, 14e (Smart)
Chapter 1 The Investment Environment
1.1 Learning Goal 1
1) A Non-Interest Bearing Checking Account Is Still Considered An
Investment. Answer: False
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
2) Land And Buildings Are Examples Of Real Property
Investments. Answer: True
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
3) Since 1900, The Average Return On Stocks Has Exceeded The Average Return On
Savings Accounts By More Than 6 Percentage Points.
Answer: True
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
4) A United States Savings Bond Is An Example Of An Investment As Defined In The
Text. Answer: True
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
5) Most Sources Of Investment Information Are In Print Format, Expensive, And
Difficult To Access.
Answer: False
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets
And Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking
Question Status: New Question
Learning Goal: Learning Goal 1
, 6) Which Of The Following Is Not An Investment As Defined In The Text?
A) A Certificate Of Deposit Issued By A Bank
B) A New Automobile
C) A United States Saving Bond
D) A Mutual Fund Held In A Retirement
Account Answer: B
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
7) Stocks Are A(N) Investment Representing Of A Business.
A) Direct; Ownership
B) Direct; Debt
C) Indirect; Ownership
D) Indirect;
Debt Answer:
A
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
8) An Exchange Traded Fund That Invests In The Stocks Of Large Corporations Is An Example
Of
A) Direct Investment.
B) Indirect Investment.
C) Derivative Investment.
D) Tangible
Investment.
Answer: B
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
Aacsb: 3 Analytical Thinking Question
Status: Previous Edition Learning
Goal: Learning Goal 1
9) Which Of The Following Has Declined In Recent Years?
A) Direct Ownership Of Stock By Individual Investors
B) The Percentage Of Foreign Stocks Held In Typical Portfolios
C) Institutional Ownership Of Common Stocks
D) The Timeliness Of Information Available To
Investors Answer: A
Learning Outcome: F-12 Discuss The Implications Of Systematic Risk In Financial Markets And
Its Role In Shaping Investment Choices
