TEST BANK FOR Investments, with eBook Access Code: Analysis and Management 15th Edition by Gerald R. Jensen , Tyler K. Jensen ISBN:978-1394243785 ALL CHAPTERS COVERED YOUR ULTIMATE GUIDE 100% VERIFIED A+ GRADE ASSURED!!!!!!! NEW LATEST UPDATE!!!!!!!!!

File: ch01: Understanding Investments
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Chapter One Understandi
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ng Investments
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,Multiple Choice FO




1. Which of the following is the best definition of wealth?
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a. The FO sum FO of all current and future income
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b. The FO total FO of all assets and all income
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c. The FO total FO of assets and income less any liabilities
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d. The FO sum FO of current income and the present value of future income
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Ans: d FO


Difficulty: Moderate FO


Ref: Establishing a Framework for Investors
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2. Gold coins would be classified as:
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a. real assets.
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b. indirect assets. FO


c. personal assets. FO


d. financial assets. FO




Ans: a Difficul
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ty: Easy
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Ref: Establishing a Framework for Investors
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3. Technically, investments include: FO FO




a. only financial assets.
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b. only marketable assets.
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c. financial and real assets that are marketable or non-marketable.
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d. only financial and real assets that are marketable.
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Ans: c Difficul
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ty: Easy
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Ref: Establishing a Framework for Investors
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4. The retirement plans that guarantee retirees a set amount of money each m
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onth are known as:
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a. 401(k) plans. FO


b. self-directed plans. FO


c. defined-benefit plans. FO


d. defined-contribution plans. FO




Chapter One Understandi
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ng Investments
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,Ans: c FO


Difficulty: Moderate FO


Ref: Establishing a Framework for Investors
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5. The investment professionals that arrange the sale of new securities
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are called:
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a. arbitragers.
b. traders.
c. investment bankers. FO


d. specialists.

Ans: c FO


Difficulty: Moderate FO


Ref: The Importance of Studying Investments
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6. Another name for stockbrokers is:
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a. specialists.
b. financial advisors. FO


c. security analysts. FO


d. portfolio managers. FO




Ans: b FO


Difficulty: Moderate FO


Ref: The Importance of Studying Investments
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7. Investment professionals who take companies public, arrange mergers
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and acquisitions, and participate in municipal bond issues are:
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a. registered representatives. FO


b. security analysts. FO


c. investment bankers. FO


d. portfolio managers. FO




Ans: c FO


Difficulty: Moderate FO


Ref: The Importance of Studying Investments
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8. One reason for the declining importance of pension funds is the:
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a. decrease in pension benefits for workers.
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b. downsizing of U.S. companies. FO FO FO


c. large number of conversions into self-directed plans.
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d. increasing number of federal regulations that restrict pension fund portfolios.
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Ans: c FO


Difficulty: Difficult FO


Ref: The Importance of Studying Investments
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Chapter One Understandi
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ng Investments
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, 9. Most financial advisors are registered with the Securities and Excha
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nge Commission as:
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a. registered FO representatives.
b. registered FO investment advisors. FO


c. registered FO financial planners. FO


d. registered FO securities consultants. FO




Ans: b FO


Difficulty: Moderate FO


Ref: The Importance of Studying Investments
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10. A Chartered Financial Analyst designation is a(n)
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a. SEC-approved and awarded designation. FO FO FO


b. certification of a successful investing record.
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c. professional designation awarded for meeting recognized standards of cond
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uct and competency.
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d. professional designation awarded by the brokerage industry.
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Ans: c Difficul
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ty: Easy
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Ref: The Importance of Studying Investments
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11. Underlying all investments is the tradeoff between:
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a. expected return and actual return.
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b. low risk and high risk.
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c. actual return and high risk.
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d. expected return and risk. FO FO FO




Ans: d FO


Difficulty: Moderate FO


Ref: Understanding the Investment Decision Process
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12. Which of the following investment areas relies heavily on mathematical
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and statistical models?
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a. Security analysis FO


b. Portfolio management FO


c. Institutional investing FO


d. Retirement planning FO




Ans: b FO


Difficulty: Moderate FO


Ref: Understanding the Investment Decision Process
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Chapter One Understandi
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ng Investments
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