ľest bank & Solution manual foí
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Fundamentals of Investing, 14th Edition by
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Scott B. Smaít
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,https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-inv
Fundamentals of Investing, 14e (Smart/Zutter) d d d d
Chapter 1 The Investment Environment
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1.1 Learning Goal 1 d d
1) A non-interest bearing checking account is still considered an investment.
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Answer: FALSE
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and
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itsrole in shaping investment choices
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AACSB: Analytical thinking
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Question Status: Previous Edition
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Learning Goal: Learning Goal 1
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2) Land and buildings are examples of real property investments.
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Answer: TRUE
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and
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itsrole in shaping investment choices
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AACSB: Analytical thinking
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Question Status: Previous Edition
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Learning Goal: Learning Goal 1
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3) Since 1900, the average return on stocks has exceeded the average return on savings
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accounts by more than 6 percentage points.
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Answer: TRUE d
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and
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itsrole in shaping investment choices
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AACSB: Analytical thinking
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Question Status: Previous Edition
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Learning Goal: Learning Goal 1
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4) A United States Savings Bond is an example of an investment as defined in the text.
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Answer: TRUE
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
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role in shaping investment choices
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AACSB: Analytical thinking
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dQuestion Status: Previous Edition
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Learning Goal: Learning Goal 1
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5) Most sources of investment information are in print format, expensive, and difficult to
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access.
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Answer: FALSE d
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and
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itsrole in shaping investment choices
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AACSB: Analytical thinking
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Question Status: Previous Edition
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Learning Goal: Learning Goal 1
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1
Copyright © 2020 Pearson Education, Inc.
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,https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-inv
6) Which of the following is NOT an investment as defined in the text?
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A) a certificate of deposit issued by a bank
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B) a new automobile
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C) a United States Saving Bond
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D) a mutual fund held in a retirement account
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Answer: B
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and
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itsrole in shaping investment choices
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AACSB: Analytical thinking
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Question Status: Previous Edition
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Learning Goal: Learning Goal 1
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7) Stocks are a(n) dinvestment representing
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A) direct; ownership d
B) direct; debt d
C) indirect; ownership d
D) indirect; debt d
Answer: A
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and
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itsrole in shaping investment choices
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AACSB: Analytical thinking
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Question Status: Previous Edition
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Learning Goal: Learning Goal 1
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8) An exchange traded fund that invests in the stocks of large corporations is an example of
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A) direct investment. d
B) indirect investment. d
C) derivative investment. d
D) tangible investment. d
Answer: B d
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and
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itsrole in shaping investment choices
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AACSB: Analytical thinking
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Question Status: Previous Edition
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Learning Goal: Learning Goal 1
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9) Which of the following has declined in recent years?
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A) direct ownership of stock by individual investors
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B) the percentage of foreign stocks held in typical portfolios
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C) institutional ownership of common stocks d d d d
D) the timeliness of information available to investors
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Answer: A
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and
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itsrole in shaping investment choices
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AACSB: Analytical thinking
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Question Status: Previous Edition
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Learning Goal: Learning Goal 1
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2
Copyright © 2020 Pearson Education, Inc.
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, https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-inv
10) Which of the following has increased in recent years?
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A) direct ownership of stock by individual investors
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B) the percentage of domestic stocks held in typical portfolios
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C) institutional ownership of common stocks d d d d
D) indirect ownership of stocks through mutual funds and ETFs.
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Answer: D
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and
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itsrole in shaping investment choices
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AACSB: Analytical thinking
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Question Status: New Question
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Learning Goal: Learning Goal
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1
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11) Debt represents funds loaned in exchange for
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A) dividend income and the repayment of the loan principal.
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B) dividend income and an ownership interest in the firm.
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C) interest income and a partial ownership interest in the firm.
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D) interest income and the repayment of the loan principal.
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Answer: D
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and
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itsrole in shaping investment choices
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AACSB: Analytical thinking
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Question Status: Previous Edition
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Learning Goal: Learning Goal 1
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1.2 Learning Goal 2 d d
1) Institutional investors manage money for businesses and nonprofit organizations, but not for
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individuals.
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Answer: FALSE d
Learning Outcome: F-01 Describe the different financial markets and the role of the financial
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managers
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AACSB: Application of
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dknowledgeQuestion Status: d d
dPrevious Edition Learning Goal:
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dLearning Goal 2 d d
2) Institutional investors are individuals who invest indirectly through financial institutions.
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Answer: FALSE
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Learning Outcome: F-01 Describe the different financial markets and the role of the
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financialmanagers
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AACSB: Application of
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knowledgeQuestion Status:
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Previous Edition Learning Goal:
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Learning Goal 2
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3
Copyright © 2020 Pearson Education, Inc.
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