Test bank & Solution manual for Fundamentals of
Investing, 14th Edition by Scott B. Smart
,https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-in
Fundamentals of Investing, 14e (Smart/Zutter) Cha wq wq wq wq wq
pter 1 The Investment Environment
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1.1 Learning Goal 1 wq wq
1) A non- wq
interest bearing checking account is still considered an investment. Answ
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er: FALSE w q
Learning Outcome: F- wq w q
12 Discuss the implications of systematic risk in financial markets and its role in shaping i
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nvestment choices wq
AACSB: Analytical thinking Questi
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on Status: Previous Edition Learnin
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g Goal: Learning Goal 1
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2) Land and buildings are examples of real property investmen
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ts. Answer: TRUE
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Learning Outcome: F- wq w q
12 Discuss the implications of systematic risk in financial markets and its role in shaping i
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nvestment choices wq
AACSB: Analytical thinking Questi
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on Status: Previous Edition Learnin
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g Goal: Learning Goal 1
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3) Since 1900, the average return on stocks has exceeded the average return on sa
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vings accounts by more than 6 percentage points.
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Answer: TRUE w q
Learning Outcome: F- wq w q
12 Discuss the implications of systematic risk in financial markets and its role in shaping i
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nvestment choices wq
AACSB: Analytical thinking Questi
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on Status: Previous Edition Learnin
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g 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- wq w q
12 Discuss the implications of systematic risk in financial markets and its role in shaping i
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nvestment choices wq
AACSB: Analytical thinking Questi
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on Status: Previous Edition Learnin
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g Goal: Learning Goal 1
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5) Most sources of investment information are in print format, expensive, and difficu
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lt to access.
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Answer: FALSE w q
Learning Outcome: F- wq w q
1
Copyright © 2020 Pearson Education, In
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c.
,https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-in
12 Discuss the implications of systematic risk in financial markets and its role in shaping i
wq wq wq wq wq wq wq wq wq wq wq wq wq wq wq
nvestment choiceswq
AACSB: Analytical thinking Questi
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on Status: Previous Edition Learnin
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g Goal: Learning Goal 1
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2
Copyright © 2020 Pearson Education, In
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c.
, 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 accou
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nt Answer: B
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Learning Outcome: F- wq w q
12 Discuss the implications of systematic risk in financial markets and its role in shaping i
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nvestment choices wq
AACSB: Analytical thinking Questi
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on Status: Previous Edition Learnin
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g Goal: Learning Goal 1
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7) Stocks are a(n) investment representing
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A) direct; ownership wq
B) direct; debt wq
C) indirect; ownership wq
D) indirect; deb wq
t Answer: A
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Learning Outcome: F- wq w q
12 Discuss the implications of systematic risk in financial markets and its role in shaping i
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nvestment choices wq
AACSB: Analytical thinking Questi
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on Status: Previous Edition Learnin
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g 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. wq
B) indirect investment. wq
C) derivative investment. wq
D) tangible investment wq
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Answer: B w q
Learning Outcome: F- wq w q
12 Discuss the implications of systematic risk in financial markets and its role in shaping i
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nvestment choices wq
AACSB: Analytical thinking Questi
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on Status: Previous Edition Learnin
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g 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 wq wq wq wq
D) the timeliness of information available to investo
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rs Answer: A
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Learning Outcome: F- wq w q
3
Copyright © 2020 Pearson Education, In
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c.