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