TEST BANK
Investments: Analysis and Management
Gerald R. Jensen
15th Edition
All Chapters Complete (Questions with Verified Answers)
,Table of Contents
PART 1: Introduction to Investments
1. Understanding Investments
2. Investment Alternatives
3. Indirect Investing
4. Securities Markets and Market Indexes
5. How Securities Are Traded
PART 2: Portfolio and Capital Market Theory
6. The Risk and Return from Investing
7. Portfolio Theory
8. Portfolio Selection and Asset Allocation
9. Capital Market Theory and Asset Pricing Models
PART 3: Common Stocks — Analysis, Valuation, and Management
10. Common Stock Valuation
11. Common Stocks: Analysis and Strategy
12. Market Efficiency
PART 4: Security Analysis
13. Economy/Market Analysis
14. Sector/Industry Analysis
15. Company Analysis
16. Technical Analysis
PART 5: Fixed-Income Securities — Analysis, Valuation, and Management
17. Bond Yields and Prices
18. Bonds: Analysis and Strategy
PART 6: Derivative Securities
19. Options
20. Futures Contracts
PART 7: Investment Management
21. Managing Your Financial Assets
22. Evaluating Investment Performance
,Ch01: Understanding Investments
Multiple Choice
1. Which of the following is the best definition of wealth?
a. The sum of all current and future income
b. The total of all assets and all income
c. The total of assets and income less any liabilities
d. The sum of current income and the present value of future income
Ans: d
Difficulty: Moderate
Ref: Establishing a Framework for Investors
2. Gold coins would be classified as:
a. real assets.
b. indirect assets.
c. personal assets.
d. financial assets.
Ans: a
Difficulty: Easy
Ref: Establishing a Framework for Investors
3. Technically, investments include:
a. only financial assets.
b. only marketable assets.
c. financial and real assets that are marketable or non-marketable.
d. only financial and real assets that are marketable.
Ans: c
Difficulty: Easy
Ref: Establishing a Framework for Investors
4. The retirement plans that guarantee retirees a set amount of money each month
are known as:
a. 401(k) plans.
b. self-directed plans.
c. defined-benefit plans.
d. defined-contribution plans.
, Ans: c
Difficulty: Moderate
Ref: Establishing a Framework for Investors
5. The investment professionals that arrange the sale of new securities are
called:
a. arbitragers.
b. traders.
c. investment bankers.
d. specialists.
Ans: c
Difficulty: Moderate
Ref: The Importance of Studying Investments
6. Another name for stockbrokers is:
a. specialists.
b. financial advisors.
c. security analysts.
d. portfolio managers.
Ans: b
Difficulty: Moderate
Ref: The Importance of Studying Investments
7. Investment professionals who take companies public, arrange mergers and
acquisitions, and participate in municipal bond issues are:
a. registered representatives.
b. security analysts.
c. investment bankers.
d. portfolio managers.
Ans: c
Difficulty: Moderate
Ref: The Importance of Studying Investments
8. One reason for the declining importance of pension funds is the:
a. decrease in pension benefits for workers.
b. downsizing of U.S. companies.
c. large number of conversions into self-directed plans.
d. increasing number of federal regulations that restrict pension fund portfolios.
Ans: c
Difficulty: Difficult
Ref: The Importance of Studying Investments
Investments: Analysis and Management
Gerald R. Jensen
15th Edition
All Chapters Complete (Questions with Verified Answers)
,Table of Contents
PART 1: Introduction to Investments
1. Understanding Investments
2. Investment Alternatives
3. Indirect Investing
4. Securities Markets and Market Indexes
5. How Securities Are Traded
PART 2: Portfolio and Capital Market Theory
6. The Risk and Return from Investing
7. Portfolio Theory
8. Portfolio Selection and Asset Allocation
9. Capital Market Theory and Asset Pricing Models
PART 3: Common Stocks — Analysis, Valuation, and Management
10. Common Stock Valuation
11. Common Stocks: Analysis and Strategy
12. Market Efficiency
PART 4: Security Analysis
13. Economy/Market Analysis
14. Sector/Industry Analysis
15. Company Analysis
16. Technical Analysis
PART 5: Fixed-Income Securities — Analysis, Valuation, and Management
17. Bond Yields and Prices
18. Bonds: Analysis and Strategy
PART 6: Derivative Securities
19. Options
20. Futures Contracts
PART 7: Investment Management
21. Managing Your Financial Assets
22. Evaluating Investment Performance
,Ch01: Understanding Investments
Multiple Choice
1. Which of the following is the best definition of wealth?
a. The sum of all current and future income
b. The total of all assets and all income
c. The total of assets and income less any liabilities
d. The sum of current income and the present value of future income
Ans: d
Difficulty: Moderate
Ref: Establishing a Framework for Investors
2. Gold coins would be classified as:
a. real assets.
b. indirect assets.
c. personal assets.
d. financial assets.
Ans: a
Difficulty: Easy
Ref: Establishing a Framework for Investors
3. Technically, investments include:
a. only financial assets.
b. only marketable assets.
c. financial and real assets that are marketable or non-marketable.
d. only financial and real assets that are marketable.
Ans: c
Difficulty: Easy
Ref: Establishing a Framework for Investors
4. The retirement plans that guarantee retirees a set amount of money each month
are known as:
a. 401(k) plans.
b. self-directed plans.
c. defined-benefit plans.
d. defined-contribution plans.
, Ans: c
Difficulty: Moderate
Ref: Establishing a Framework for Investors
5. The investment professionals that arrange the sale of new securities are
called:
a. arbitragers.
b. traders.
c. investment bankers.
d. specialists.
Ans: c
Difficulty: Moderate
Ref: The Importance of Studying Investments
6. Another name for stockbrokers is:
a. specialists.
b. financial advisors.
c. security analysts.
d. portfolio managers.
Ans: b
Difficulty: Moderate
Ref: The Importance of Studying Investments
7. Investment professionals who take companies public, arrange mergers and
acquisitions, and participate in municipal bond issues are:
a. registered representatives.
b. security analysts.
c. investment bankers.
d. portfolio managers.
Ans: c
Difficulty: Moderate
Ref: The Importance of Studying Investments
8. One reason for the declining importance of pension funds is the:
a. decrease in pension benefits for workers.
b. downsizing of U.S. companies.
c. large number of conversions into self-directed plans.
d. increasing number of federal regulations that restrict pension fund portfolios.
Ans: c
Difficulty: Difficult
Ref: The Importance of Studying Investments
