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for 2026/2027
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paration questions
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1 exam s
, Fundamentals
(((Prepare with
of investing
Exam _2026//2027=,.
13th edition bycomprehensive
scott b smart test
collection
bank.pdfDesigned
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for 2026/2027
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Fundamentals of Investing, 13e (Smart)
Chapter 1 The Investment Environment
1.1 Learning Goal 1
1) A non-interest bearing checking account is still considered an investment.
Answer: FALSE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
2) Land and buildings are examples of real property investments.
Answer: TRUE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
3) Since 1900, the average return on stocks has exceeded the average return on savings
accounts by more than 6 percentage points.
Answer: TRUE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
4) A United States Savings Bond is an example of an investment as defined in the text.
Answer: TRUE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
5) Most sources of investment information are in print format, expensive, and difficult to
access.
Answer: FALSE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: New Question
Learning Goal: Learning Goal 1
1
Copyright © 2017 Pearson Education, Inc.
027 ExamQ&A
questions
2026/2027
and answers
Exam questions
2026 2027
andComplete
answers 2026
exam 2027
solutions
Complete
Q&A Exam
exam
Pagepreparation
solutions
2 of 540 Q&A
questions
Exam preparation
with answers
questions
Academicwith
exam
answers
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Academic
2026/2027Page
exam revision
2 2026
, Fundamentals
(((Prepare with
of investing
Exam _2026//2027=,.
13th edition bycomprehensive
scott b smart test
collection
bank.pdfDesigned
of exam-focused
Page
for 2026/2027
3:{
questions
Exam Format
exam
and answers
cycles
& Resources::
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2026/2027:
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instructors,
6) Which of the following is NOT an investment as defined in the text?
A) a certificate of deposit issued by a bank
B) a new automobile
C) a United States Saving Bond
D) a mutual fund held in a retirement account
Answer: B
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
7) Stocks are a(n) ________ investment representing ________ of a business.
A) direct; ownership
B) direct; debt
C) indirect; ownership
D) indirect; debt
Answer: A
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
8) An exchange traded fund that invests in the stocks of large corporations is an example of
A) direct investment.
B) indirect investment.
C) derivative investment.
D) tangible investment.
Answer: B
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
9) Which of the following has declined in recent years?
A) direct ownership of stock by individual investors
B) the percentage of foreign stocks held in typical portfolios
C) institutional ownership of common stocks
D) the timeliness of information available to investors
Answer: A
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
2
Copyright © 2017 Pearson Education, Inc.
027 ExamQ&A
questions
2026/2027
and answers
Exam questions
2026 2027
andComplete
answers 2026
exam 2027
solutions
Complete
Q&A Exam
exam
Pagepreparation
solutions
3 of 540 Q&A
questions
Exam preparation
with answers
questions
Academicwith
exam
answers
revision
Academic
2026/2027Page
exam revision
3 2026
, Fundamentals
(((Prepare with
of investing
Exam _2026//2027=,.
13th edition bycomprehensive
scott b smart test
collection
bank.pdfDesigned
of exam-focused
Page
for 2026/2027
4:{
questions
Exam Format
exam
and answers
cycles
& Resources::
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with for
complete
2026/2027:
students,
solutions.
instructors,
Academic
Designed
and
& Professional
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for students,
candidates)0))
Use))
instructors,
10) Debt represents funds loaned in exchange for
A) dividend income and the repayment of the loan principal.
B) dividend income and an ownership interest in the firm.
C) interest income and a partial ownership interest in the firm.
D) interest income and the repayment of the loan principal.
Answer: D
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
1.2 Learning Goal 2
1) Institutional investors manage money for businesses and nonprofit organizations, but not for
individuals.
Answer: FALSE
Learning Outcome: F-01 Describe the different financial markets and the role of the financial
managers
AACSB: 8 Application of knowledge (Able to translate knowledge of business and management
into practice)
Question Status: Previous Edition
Learning Goal: Learning Goal 2
2) Institutional investors are individuals who invest indirectly through financial institutions.
Answer: FALSE
Learning Outcome: F-01 Describe the different financial markets and the role of the financial
managers
AACSB: 8 Application of knowledge (Able to translate knowledge of business and management
into practice)
Question Status: Previous Edition
Learning Goal: Learning Goal 2
3) Banks and insurance companies are examples of institutional investors.
Answer: TRUE
Learning Outcome: F-01 Describe the different financial markets and the role of the financial
managers
AACSB: 8 Application of knowledge (Able to translate knowledge of business and management
into practice)
Question Status: Previous Edition
Learning Goal: Learning Goal 2
3
Copyright © 2017 Pearson Education, Inc.
027 ExamQ&A
questions
2026/2027
and answers
Exam questions
2026 2027
andComplete
answers 2026
exam 2027
solutions
Complete
Q&A Exam
exam
Pagepreparation
solutions
4 of 540 Q&A
questions
Exam preparation
with answers
questions
Academicwith
exam
answers
revision
Academic
2026/2027Page
exam revision
4 2026
1:{ scott
Exam(((Prepare
bFormat
smart test
& with
Resources::
bank.pdfDesigned
Exam _2026//2027=,.
2026/2027:
for 2026/2027
Academic
comprehensive
exam
& Professional
cycles
collection
Ideal
Use))
offor
exam-focu
students
paration questions
Q&A 2026/2027
with answers
Exam questions
Academic
Page 1 and
of
exam
540
answers
revision
2026
2026/2027Page
2027 Complete
1 exam s
, Fundamentals
(((Prepare with
of investing
Exam _2026//2027=,.
13th edition bycomprehensive
scott b smart test
collection
bank.pdfDesigned
of exam-focused
Page
for 2026/2027
2:{
questions
Exam Format
exam
and answers
cycles
& Resources::
Ideal
with for
complete
2026/2027:
students,
solutions.
instructors,
Academic
Designed
and
& Professional
exam
for students,
candidates)0))
Use))
instructors,
Fundamentals of Investing, 13e (Smart)
Chapter 1 The Investment Environment
1.1 Learning Goal 1
1) A non-interest bearing checking account is still considered an investment.
Answer: FALSE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
2) Land and buildings are examples of real property investments.
Answer: TRUE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
3) Since 1900, the average return on stocks has exceeded the average return on savings
accounts by more than 6 percentage points.
Answer: TRUE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
4) A United States Savings Bond is an example of an investment as defined in the text.
Answer: TRUE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
5) Most sources of investment information are in print format, expensive, and difficult to
access.
Answer: FALSE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: New Question
Learning Goal: Learning Goal 1
1
Copyright © 2017 Pearson Education, Inc.
027 ExamQ&A
questions
2026/2027
and answers
Exam questions
2026 2027
andComplete
answers 2026
exam 2027
solutions
Complete
Q&A Exam
exam
Pagepreparation
solutions
2 of 540 Q&A
questions
Exam preparation
with answers
questions
Academicwith
exam
answers
revision
Academic
2026/2027Page
exam revision
2 2026
, Fundamentals
(((Prepare with
of investing
Exam _2026//2027=,.
13th edition bycomprehensive
scott b smart test
collection
bank.pdfDesigned
of exam-focused
Page
for 2026/2027
3:{
questions
Exam Format
exam
and answers
cycles
& Resources::
Ideal
with for
complete
2026/2027:
students,
solutions.
instructors,
Academic
Designed
and
& Professional
exam
for students,
candidates)0))
Use))
instructors,
6) Which of the following is NOT an investment as defined in the text?
A) a certificate of deposit issued by a bank
B) a new automobile
C) a United States Saving Bond
D) a mutual fund held in a retirement account
Answer: B
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
7) Stocks are a(n) ________ investment representing ________ of a business.
A) direct; ownership
B) direct; debt
C) indirect; ownership
D) indirect; debt
Answer: A
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
8) An exchange traded fund that invests in the stocks of large corporations is an example of
A) direct investment.
B) indirect investment.
C) derivative investment.
D) tangible investment.
Answer: B
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
9) Which of the following has declined in recent years?
A) direct ownership of stock by individual investors
B) the percentage of foreign stocks held in typical portfolios
C) institutional ownership of common stocks
D) the timeliness of information available to investors
Answer: A
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
2
Copyright © 2017 Pearson Education, Inc.
027 ExamQ&A
questions
2026/2027
and answers
Exam questions
2026 2027
andComplete
answers 2026
exam 2027
solutions
Complete
Q&A Exam
exam
Pagepreparation
solutions
3 of 540 Q&A
questions
Exam preparation
with answers
questions
Academicwith
exam
answers
revision
Academic
2026/2027Page
exam revision
3 2026
, Fundamentals
(((Prepare with
of investing
Exam _2026//2027=,.
13th edition bycomprehensive
scott b smart test
collection
bank.pdfDesigned
of exam-focused
Page
for 2026/2027
4:{
questions
Exam Format
exam
and answers
cycles
& Resources::
Ideal
with for
complete
2026/2027:
students,
solutions.
instructors,
Academic
Designed
and
& Professional
exam
for students,
candidates)0))
Use))
instructors,
10) Debt represents funds loaned in exchange for
A) dividend income and the repayment of the loan principal.
B) dividend income and an ownership interest in the firm.
C) interest income and a partial ownership interest in the firm.
D) interest income and the repayment of the loan principal.
Answer: D
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: 3 Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
1.2 Learning Goal 2
1) Institutional investors manage money for businesses and nonprofit organizations, but not for
individuals.
Answer: FALSE
Learning Outcome: F-01 Describe the different financial markets and the role of the financial
managers
AACSB: 8 Application of knowledge (Able to translate knowledge of business and management
into practice)
Question Status: Previous Edition
Learning Goal: Learning Goal 2
2) Institutional investors are individuals who invest indirectly through financial institutions.
Answer: FALSE
Learning Outcome: F-01 Describe the different financial markets and the role of the financial
managers
AACSB: 8 Application of knowledge (Able to translate knowledge of business and management
into practice)
Question Status: Previous Edition
Learning Goal: Learning Goal 2
3) Banks and insurance companies are examples of institutional investors.
Answer: TRUE
Learning Outcome: F-01 Describe the different financial markets and the role of the financial
managers
AACSB: 8 Application of knowledge (Able to translate knowledge of business and management
into practice)
Question Status: Previous Edition
Learning Goal: Learning Goal 2
3
Copyright © 2017 Pearson Education, Inc.
027 ExamQ&A
questions
2026/2027
and answers
Exam questions
2026 2027
andComplete
answers 2026
exam 2027
solutions
Complete
Q&A Exam
exam
Pagepreparation
solutions
4 of 540 Q&A
questions
Exam preparation
with answers
questions
Academicwith
exam
answers
revision
Academic
2026/2027Page
exam revision
4 2026
