Test Bank for Investments Analysis and Management, 15th Edition by Gerald R. Jensen| 9781394243754| All Chapters| UPDATED

File:s4ch01:s4Understandings4Investments



Multiples4Choice

1. Whichs4ofs4thes4followings4iss4thes4bests4definitions4ofs4wealth?

a. Thes4sums4ofs4alls4currents4ands4futures4income
b. Thes4totals4ofs4alls4assetss4ands4alls4income
c. Thes4totals4ofs4assetss4ands4incomes4lesss4anys4liabilities
d. Thes4sums4ofs4currents4incomes4ands4thes4presents4values4ofs4futures4income

Ans:s4d
Difficulty:s4Moderate
Ref:s4Establishings4as4Frameworks4fors4Investors

2. Golds4coinss4woulds4bes4classifieds4as:

a. reals4assets.
b. indirects4assets.
c. personals4assets.
d. financials4assets.

Ans:s4as4Difficu
lty:s4Easy
Ref:s4Establishings4as4Frameworks4fors4Investors

3. Technically,s4investmentss4include:

a. onlys4financials4assets.
b. onlys4marketables4assets.
c. financials4ands4reals4assetss4thats4ares4marketables4ors4non-marketable.
d. onlys4financials4ands4reals4assetss4thats4ares4marketable.

Ans:s4cs4Difficu
lty:s4Easy
Ref:s4Establishings4as4Frameworks4fors4Investors

4. Thes4retirements4planss4thats4guarantees4retireess4as4sets4amounts4ofs4moneys4ea
chs4months4ares4knowns4as:

a. 401(k)s4plans.
b. self-directeds4plans.
c. defined-benefits4plans.
d. defined-contributions4plans.




Chapters4Ones4Understandi 1
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,Ans:s4c
Difficulty:s4Moderate
Ref:s4Establishings4as4Frameworks4fors4Investors

5. Thes4investments4professionalss4thats4arranges4thes4sales4ofs4news4securi
tiess4ares4called:

a. arbitragers.
b. traders.
c. investments4bankers.
d. specialists.

Ans:s4c
Difficulty:s4Moderate
Ref:s4Thes4Importances4ofs4Studyings4Investments

6. Anothers4names4fors4stockbrokerss4is:

a. specialists.
b. financials4advisors.
c. securitys4analysts.
d. portfolios4managers.

Ans:s4b
Difficulty:s4Moderate
Ref:s4Thes4Importances4ofs4Studyings4Investments

7. Investments4professionalss4whos4takes4companiess4public,s4arranges4merge
rss4ands4acquisitions,s4ands4participates4ins4municipals4bonds4issuess4are:

a. registereds4representatives.
b. securitys4analysts.
c. investments4bankers.
d. portfolios4managers.

Ans:s4c
Difficulty:s4Moderate
Ref:s4Thes4Importances4ofs4Studyings4Investments

8. Ones4reasons4fors4thes4declinings4importances4ofs4pensions4fundss4iss4the:

a. decreases4ins4pensions4benefitss4fors4workers.
b. downsizings4ofs4U.S.s4companies.
c. larges4numbers4ofs4conversionss4intos4self-directeds4plans.
d. increasings4numbers4ofs4federals4regulationss4thats4restricts4pensions4funds4portfolios.

Ans:s4c
Difficulty:s4Difficult
Ref:s4Thes4Importances4ofs4Studyings4Investments

Chapters4Ones4Understandi 2
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,9. Mosts4financials4advisorss4ares4registereds4withs4thes4Securitiess4ands4Ex
changes4Commissions4as:

a. registereds4representatives.
b. registereds4investments4advisors.
c. registereds4financials4planners.
d. registereds4securitiess4consultants.

Ans:s4b
Difficulty:s4Moderate
Ref:s4Thes4Importances4ofs4Studyings4Investments

10. As4Chartereds4Financials4Analysts4designations4iss4a(n)

a. SEC-approveds4ands4awardeds4designation.
b. certifications4ofs4as4successfuls4investings4record.
c. professionals4designations4awardeds4fors4meetings4recognizeds4standardss4ofs4c
onducts4ands4competency.
d. professionals4designations4awardeds4bys4thes4brokerages4industry.

Ans:s4cs4Difficu
lty:s4Easy
Ref:s4Thes4Importances4ofs4Studyings4Investments

11. Underlyings4alls4investmentss4iss4thes4tradeoffs4between:

a. expecteds4returns4ands4actuals4return.
b. lows4risks4ands4highs4risk.
c. actuals4returns4ands4highs4risk.
d. expecteds4returns4ands4risk.

Ans:s4d
Difficulty:s4Moderate
Ref:s4Understandings4thes4Investments4Decisions4Process

12. Whichs4ofs4thes4followings4investments4areass4reliess4heavilys4ons4mathemati
cals4ands4statisticals4models?

a. Securitys4analysis
b. Portfolios4management
c. Institutionals4investing
d. Retirements4planning

Ans:s4b
Difficulty:s4Moderate
Ref:s4Understandings4thes4Investments4Decisions4Process

Chapters4Ones4Understandi 3
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, 13. Mosts4investorss4ares4risks4averse,s4whichs4means:

a. theys4wills4assumes4mores4risks4onlys4ifs4theys4ares4compensateds4bys4highers
4expecteds4return.
b. theys4wills4alwayss4invests4ins4thes4investments4withs4thes4lowests4possibles4risk.
c. theys4activelys4seeks4tos4minimizes4theirs4risks.
d. theys4avoids4thes4stocks4markets4dues4tos4thes4highs4degrees4ofs4risk.

Ans:s4a
Difficulty:s4Moderate
Ref:s4Understandings4thes4Investments4Decisions4Process

14. Whichs4ofs4thes4followings4woulds4bes4considereds4as4risk-frees4investment?

a. Gold
b. Equitys4ins4as4house
c. High-grades4corporates4bonds
d. U.S.s4Treasurys4bills

Ans:s4ds4Diffic
ulty:s4Easy
Ref:s4Understandings4thes4Investments4Decisions4Process

15. Securitys4analysiss4iss4mosts4concerneds4with:

a. analysiss4ofs4thes4overalls4securitiess4markets4ands4itss4direction.
b. valuations4ands4analysiss4ofs4individuals4securities.
c. purchasings4securitiess4ats4thes4bests4price.
d. determinations4ofs4thes4investor’ss4requireds4return.

Ans:s4b
Difficulty:s4Moderate
Ref:s4Understandings4thes4Investments4Decisions4Process

16. Ins4general,s4thes4exs4antes4risk-returns4tradeoff:

a. slopess4upward.
b. slopess4downward.
c. iss4flat.
d. iss4impossibles4tos4determine.

Ans:s4a
Difficulty:s4Moderate
Ref:s4Understandings4thes4Investments4Decisions4Process



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