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) Chap ws ws ws ws ws
ter 1 The Investment Environment
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1.1 Learning Goal 1 ws ws
1) A non- ws
interest bearing checking account is still considered an investment. Answe
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r: FALSE
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Learning Outcome: F- ws w s
12 Discuss the implications of systematic risk in financial markets and its role in shaping in
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vestment choices ws
AACSB: Analytical thinking Questiw s ws ws
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 investment
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s. Answer: TRUE
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Learning Outcome: F- ws w s
12 Discuss the implications of systematic risk in financial markets and its role in shaping in
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vestment choices ws
AACSB: Analytical thinking Questiw s ws ws
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 savi
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ngs accounts by more than 6 percentage points.
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Answer: TRUE w s
Learning Outcome: F- ws w s
12 Discuss the implications of systematic risk in financial markets and its role in shaping in
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vestment choices ws
AACSB: Analytical thinking Questiw s ws ws
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 t
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ext. Answer: TRUE
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Learning Outcome: F- ws w s
12 Discuss the implications of systematic risk in financial markets and its role in shaping in
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vestment choices ws
AACSB: Analytical thinking Questiw s ws ws
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 difficult
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to access.
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Answer: FALSE w s
Learning Outcome: F- ws w s
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 in
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vestment choices
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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- ws w s
12 Discuss the implications of systematic risk in financial markets and its role in shaping in
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vestment choices ws
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 ws
B) direct; debt ws
C) indirect; ownership ws
D) indirect; debt ws
Answer: A
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Learning Outcome: F- ws w s
12 Discuss the implications of systematic risk in financial markets and its role in shaping in
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vestment choices ws
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. ws
B) indirect investment. ws
C) derivative investment. ws
D) tangible investment. ws
Answer: B w s
Learning Outcome: F- ws w s
12 Discuss the implications of systematic risk in financial markets and its role in shaping in
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vestment choices ws
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 ws ws ws ws
D) the timeliness of information available to investo
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rs Answer: A
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Learning Outcome: F- ws w s
12 Discuss the implications of systematic risk in financial markets and its role in shaping in
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3
Copyright © 2020 Pearson Education, In
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c.