Test bank for Fundamentals of Investing, 14th Edition by Scott B. Smart

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Investing,14thEditionby Scott B. Smart
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,https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-inv


Fundamentals of Investing, 14e gg gg gg


(Smart/Zutter) Chapter 1 The Investment
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Environment
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1.1 Learning Goal 1 gg gg




1) A non-interest bearing checking account is still considered an
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investment. Answer: FALSE
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Learning Outcome: F-12 Discuss the implications of systematic risk in
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financial markets and its role in shaping investment choices
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AACSB: Analytical thinking g g gg


Question Status:
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Edition Learning Goal:
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2) Land and buildings are examples of real property
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investments. Answer: TRUE
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial
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markets and its role in shaping investment choices
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AACSB: Analytical thinking g g gg


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Edition Learning Goal:
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3) Since 1900, the average return on stocks has exceeded the average
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return on savings accounts by more than 6 percentage points.
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Answer: TRUE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial
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markets and its role in shaping investment choices
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AACSB: Analytical thinking g g gg


Question Status:
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Edition Learning Goal:
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4) A United States Savings Bond is an example of an investment as defined
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in the text. Answer: TRUE
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial
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markets and its role in shaping investment choices
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AACSB: Analytical thinking g g gg


Question Status:
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Edition Learning Goal:
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5) Most sources of investment information are in print format, expensive, and
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difficult to access.
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Answer: FALSE
Learning Outcome: F-12 Discuss the implications of systematic risk in financial
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1
Copyright © 2020 Pearson Education,
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Inc.


,https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-inv
markets and its role in shaping investment choices
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AACSB: Analytical thinking
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Question Status:
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Edition Learning Goal:
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g Learning Goal 1
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2
Copyright © 2020 Pearson Education,
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Inc.


, https://browsegrades.net/singlePaper/416741/test-banksolution-manual-for-fundamentals-of-inv


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
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account Answer: B
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial
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markets and its role in shaping investment choices
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AACSB: Analytical thinkingg g gg


Question Status:
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Edition Learning Goal:
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7) Stocks are a(n) gginvestment representing gg of a business. gg gg gg gg gg


A) direct; ownership gg


B) direct; debt gg


C) indirect; ownership gg


D) indirect; debt gg


Answer: A
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial
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markets and its role in shaping investment choices
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AACSB: Analytical thinkingg g gg


Question Status:
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Edition Learning Goal:
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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.gg


B) indirect investment. gg


C) derivative investment. gg


D) tangible investment. gg


Answer: B
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial
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markets and its role in shaping investment choices
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AACSB: Analytical thinkingg g gg


Question Status:
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Edition Learning Goal:
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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 gg gg gg gg


D) the timeliness of information available to
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investors Answer: A
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Learning Outcome: F-12 Discuss the implications of systematic risk in financial
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markets and its role in shaping investment choices
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3
Copyright © 2020 Pearson Education,
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Inc.