Page 1 of 74
UGBA 135 midterm EXAM 2026-2027 COMPLETE
300 QUESTIONS AND VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR
UGBA 135 midterm
In most cases, as people approach retirement age, it is recommended that they increase the
percentage of their financial investments held in stocks and decrease the percentage held in
bonds. True or false?
False
Most target date funds decrease their allocation to stocks over time. True or false?
True
Benjamin Graham recommended holding no more than 75% of one's portfolio in stocks and
no less than 25% in gold. True or false?
False
If you buy a company's stock,
you own a part of the company.
If you buy a company's bond,
,Page 2 of 74
you have lent money to the company.
If a company files for bankruptcy, which of the following securities is most at risk of becoming
virtually worthless?
The company's stock
Holding a diversified portfolio of stocks rather than an undiversified portfolio
increases the likelihood that you will own at least one stock that performs poorly.
Investments with higher risk always have higher expected returns. True or false?
False
Advertisements for online trading tend to emphasize which of the following?
That trading is fun.
That making your own trading decisions puts you in control.
That it is easy to trade online
Actively trading common stocks is the best long-term investment strategy for most investors.
True or False?
False
The potential advantages of index funds are
,Page 3 of 74
Many, though not all, have low fees
Many, though not all, are well diversified.
It is surprisingly difficult to look up the fees for mutual funds? True or false.
False
When buying a mutual fund in a particular asset class, which of the following is most
important?
The fees the fund charges.
A mutual fund load is a commission you pay when you buy (or sometimes when you sell) a
mutual fund. True or false?
True
The fees charged by index funds vary with the types of assets the funds invest in. True or
false?
True
Exchange Traded Funds (ETFs) sometimes charge high fees, but they are always well
diversified. True or false?
False
If the market drops 30%, it is certain to recover during the next year. True or False
, Page 4 of 74
False
Which of these is not a major Credit Bureau?
Moody's
What factors directly affect your credit score? (Choose all that apply.)
Payment History
Debt Burden
Length of Credit History
Which factor has the largest direct impact on your credit score?
Payment History
In the video "Prioritizing Savings" which of the following do I NOT recommend?
Save first for your children's education, then for your own retirement
Lenders use credit reports to help them decide whether to loan you money and what interest
rate to charge. True or false?
True
Zvi Bodie invests in...
inflation protected US bonds.
Asset allocation refers to deciding which individual stocks to buy. True or false?
UGBA 135 midterm EXAM 2026-2027 COMPLETE
300 QUESTIONS AND VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR
UGBA 135 midterm
In most cases, as people approach retirement age, it is recommended that they increase the
percentage of their financial investments held in stocks and decrease the percentage held in
bonds. True or false?
False
Most target date funds decrease their allocation to stocks over time. True or false?
True
Benjamin Graham recommended holding no more than 75% of one's portfolio in stocks and
no less than 25% in gold. True or false?
False
If you buy a company's stock,
you own a part of the company.
If you buy a company's bond,
,Page 2 of 74
you have lent money to the company.
If a company files for bankruptcy, which of the following securities is most at risk of becoming
virtually worthless?
The company's stock
Holding a diversified portfolio of stocks rather than an undiversified portfolio
increases the likelihood that you will own at least one stock that performs poorly.
Investments with higher risk always have higher expected returns. True or false?
False
Advertisements for online trading tend to emphasize which of the following?
That trading is fun.
That making your own trading decisions puts you in control.
That it is easy to trade online
Actively trading common stocks is the best long-term investment strategy for most investors.
True or False?
False
The potential advantages of index funds are
,Page 3 of 74
Many, though not all, have low fees
Many, though not all, are well diversified.
It is surprisingly difficult to look up the fees for mutual funds? True or false.
False
When buying a mutual fund in a particular asset class, which of the following is most
important?
The fees the fund charges.
A mutual fund load is a commission you pay when you buy (or sometimes when you sell) a
mutual fund. True or false?
True
The fees charged by index funds vary with the types of assets the funds invest in. True or
false?
True
Exchange Traded Funds (ETFs) sometimes charge high fees, but they are always well
diversified. True or false?
False
If the market drops 30%, it is certain to recover during the next year. True or False
, Page 4 of 74
False
Which of these is not a major Credit Bureau?
Moody's
What factors directly affect your credit score? (Choose all that apply.)
Payment History
Debt Burden
Length of Credit History
Which factor has the largest direct impact on your credit score?
Payment History
In the video "Prioritizing Savings" which of the following do I NOT recommend?
Save first for your children's education, then for your own retirement
Lenders use credit reports to help them decide whether to loan you money and what interest
rate to charge. True or false?
True
Zvi Bodie invests in...
inflation protected US bonds.
Asset allocation refers to deciding which individual stocks to buy. True or false?
