tert1t ThetInvestmenttEnvironment
1.1 LearningtGoalt1
1) Atnon-
interesttbearingtcheckingtaccounttiststilltconsideredtantinvestment.tAnswer:t F
ALSE
LearningtOutcome:tF-
12tDiscusstthetimplicationstoftsystematictrisktintfinancialtmarketstandtitstroletintshapingtinvestmentt
choices
AACSB:t3tAnalyticaltthinkingtQuestio
ntStatus:tPrevioustEditiontLearningtGoa
l:t LearningtGoalt1
2) Landtandtbuildingstaretexamplestoftrealtpropertytinvestments.tA
nswer:t TRUE
LearningtOutcome:t F-
12tDiscusstthetimplicationstoftsystematictrisktintfinancialtmarketstandtitstroletintshapingtinvestmenttc
hoices
AACSB:t3tAnalyticaltthinkingtQuestio
ntStatus:tPrevioustEditiontLearningtGoa
l:t LearningtGoalt1
3) Sincet1900,tthetaveragetreturntontstocksthastexceededtthetaveragetreturntontsavingstacc
ountstbytmoretthant6tpercentagetpoints.
Answer:t TRUE
LearningtOutcome:t F-
12tDiscusstthetimplicationstoftsystematictrisktintfinancialtmarketstandtitstroletintshapingtinvestmenttc
hoices
AACSB:t3tAnalyticaltthinkingtQuestio
ntStatus:tPrevioustEditiontLearningtGoa
l:t LearningtGoalt1
4) AtUnitedtStatestSavingstBondtistantexampletoftantinvestmenttastdefinedtintthettext.tAns
wer:t TRUE
LearningtOutcome:tF-
12tDiscusstthetimplicationstoftsystematictrisktintfinancialtmarketstandtitstroletintshapingtinvestmentt
choices
AACSB:t3tAnalyticaltthinkingtQuestio
ntStatus:tPrevioustEditiontLearningtGoa
l:t LearningtGoalt1
5) Mosttsourcestoftinvestmenttinformationtaretintprinttformat,texpensive,tandtdifficultttotacc
ess.
Answer:t FALSE
LearningtOutcome:t F-
1
Copyrightt©t2017tPearsontEducation,tInc.
,12tDiscusstthetimplicationstoftsystematictrisktintfinancialtmarketstandtitstroletintshapingtinvestmentt
choices
AACSB:t3tAnalyticaltthinkingtQ
uestiontStatus:tNewtQuestiontLea
rningtGoal:t LearningtGoalt1
2
Copyrightt©t2017tPearsontEducation,tInc.
, 6) WhichtoftthetfollowingtistNOTtantinvestmenttastdefinedtintthettext?
A) atcertificatetoftdeposittissuedtbytatbank
B) atnewtautomobile
C) atUnitedtStatestSavingtBond
D) atmutualtfundtheldtintatretirementtaccounttA
nswer:tB
LearningtOutcome:t F-
12tDiscusstthetimplicationstoftsystematictrisktintfinancialtmarketstandtitstroletintshapingtinvestmenttc
hoices
AACSB:t3tAnalyticaltthinkingtQuestio
ntStatus:tPrevioustEditiontLearningtGoa
l:t LearningtGoalt1
7) Stockstareta(n) investmenttrepresenting oftatbusiness.
A) direct;townership
B) direct;tdebt
C) indirect;townership
D) indirect;tdebtt
Answer:t A
LearningtOutcome:t F-
12tDiscusstthetimplicationstoftsystematictrisktintfinancialtmarketstandtitstroletintshapingtinvestmenttc
hoices
AACSB:t3tAnalyticaltthinkingtQuestio
ntStatus:tPrevioustEditiontLearningtGoa
l:t LearningtGoalt1
8) Antexchangettradedtfundtthattinveststintthetstockstoftlargetcorporationstistantexampletof
A) directtinvestment.
B) indirecttinvestment.
C) derivativetinvestment.
D) tangibletinvestment.
Answer:t B
LearningtOutcome:t F-
12tDiscusstthetimplicationstoftsystematictrisktintfinancialtmarketstandtitstroletintshapingtinvestmenttc
hoices
AACSB:t3tAnalyticaltthinkingtQuestio
ntStatus:tPrevioustEditiontLearningtGoa
l:t LearningtGoalt1
9) Whichtoftthetfollowingthastdeclinedtintrecenttyears?
A) directtownershiptoftstocktbytindividualtinvestors
B) thetpercentagetoftforeigntstockstheldtinttypicaltportfolios
C) institutionaltownershiptoftcommontstocks
D) thettimelinesstoftinformationtavailablettotinvestorstA
nswer:t A
LearningtOutcome:t F-
12tDiscusstthetimplicationstoftsystematictrisktintfinancialtmarketstandtitstroletintshapingtinvestmenttc
3
Copyrightt©t2017tPearsontEducation,tInc.