Test Bank For Fundamentals Of Investing 13th Edition by Scott B. Smart ISBN;9780134083308 All Chapters 1 - 18 Fully Covered ||COMPLETE GUIDE A+||.

,FundamentalstoftInvesting,t13et(Smart)tChap
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.