Fundamentals of Investing
14th Edition
ST
TEST BANK &
UV
IA
SOLUTIONS
_A
MANUAL
PP
RO
Scott B. Smart
Chad J. Zutter
VE
D?
Comprehensive Test Bank & Solutions Manual for Instructors and Students
© Scott B. Smart & Chad J. Zutter
?
All rights reserved. Reproduction or distribution without permission is prohibited.
©MEDCONNOISSEUR
, Fundamentals of Investing, 14th Edition
Scott B. Smart; Chad J. Zutter
ISBN: 9780135175217
ST
Unit I: INVESTMENT FOUNDATIONS
1. The Investment Environment
2. Securities Markets and Transactions
UV
3. Investment Information and Securities Transactions
4. Return and Risk
Appendix 4A. The Time Value of Money
IA
Unit II: PORTFOLIO CONCEPTS AND EQUITY INVESTING
5. Modern Portfolio Concepts
6. Common Stocks
_A
7. Analyzing Common Stocks
8. Stock Valuation
9. Market Efficiency and Behavioral Finance
PP
Unit III: FIXED-INCOME, FUNDS, AND PERSONAL PORTFOLIOS
10. Fixed-Income Securities
11. Bond Valuation
12. Mutual Funds and Exchange-Traded Funds
RO
13. Managing Your Own Portfolio
Unit IV: DERIVATIVES AND SPECIALIZED INVESTMENTS
14. Options: Puts and Calls
VE
15. Futures Markets and Securities
16. Investing in Preferred Stocks
17. Tax-Advantaged Investments
D?
?
©MEDCONNOISSEUR
, Fundamentals of Investing, 14e (Smart/Zutter)
Chapter 1 The Investment Environment
1.1 Learning Goal 1
1) A non-interest bearing checking account is still considered an investment.
Answer: FALSE
ST
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
UV
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: Analytical thinking
IA
Question Status: Previous Edition
Learning Goal: Learning Goal 1
3) Since 1900, the average return on stocks has exceeded the average return on savings
_A
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: Analytical thinking
PP
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
RO
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
VE
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
D?
role in shaping investment choices
AACSB: Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
?
, 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
ST
Answer: B
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: Analytical thinking
UV
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
IA
C) indirect; ownership
D) indirect; debt
Answer: A
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
_A
role in shaping investment choices
AACSB: Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
PP
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.
RO
Answer: B
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: Analytical thinking
Question Status: Previous Edition
VE
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
D?
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: Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
14th Edition
ST
TEST BANK &
UV
IA
SOLUTIONS
_A
MANUAL
PP
RO
Scott B. Smart
Chad J. Zutter
VE
D?
Comprehensive Test Bank & Solutions Manual for Instructors and Students
© Scott B. Smart & Chad J. Zutter
?
All rights reserved. Reproduction or distribution without permission is prohibited.
©MEDCONNOISSEUR
, Fundamentals of Investing, 14th Edition
Scott B. Smart; Chad J. Zutter
ISBN: 9780135175217
ST
Unit I: INVESTMENT FOUNDATIONS
1. The Investment Environment
2. Securities Markets and Transactions
UV
3. Investment Information and Securities Transactions
4. Return and Risk
Appendix 4A. The Time Value of Money
IA
Unit II: PORTFOLIO CONCEPTS AND EQUITY INVESTING
5. Modern Portfolio Concepts
6. Common Stocks
_A
7. Analyzing Common Stocks
8. Stock Valuation
9. Market Efficiency and Behavioral Finance
PP
Unit III: FIXED-INCOME, FUNDS, AND PERSONAL PORTFOLIOS
10. Fixed-Income Securities
11. Bond Valuation
12. Mutual Funds and Exchange-Traded Funds
RO
13. Managing Your Own Portfolio
Unit IV: DERIVATIVES AND SPECIALIZED INVESTMENTS
14. Options: Puts and Calls
VE
15. Futures Markets and Securities
16. Investing in Preferred Stocks
17. Tax-Advantaged Investments
D?
?
©MEDCONNOISSEUR
, Fundamentals of Investing, 14e (Smart/Zutter)
Chapter 1 The Investment Environment
1.1 Learning Goal 1
1) A non-interest bearing checking account is still considered an investment.
Answer: FALSE
ST
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
UV
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: Analytical thinking
IA
Question Status: Previous Edition
Learning Goal: Learning Goal 1
3) Since 1900, the average return on stocks has exceeded the average return on savings
_A
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: Analytical thinking
PP
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
RO
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
VE
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
D?
role in shaping investment choices
AACSB: Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
?
, 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
ST
Answer: B
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: Analytical thinking
UV
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
IA
C) indirect; ownership
D) indirect; debt
Answer: A
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
_A
role in shaping investment choices
AACSB: Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
PP
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.
RO
Answer: B
Learning Outcome: F-12 Discuss the implications of systematic risk in financial markets and its
role in shaping investment choices
AACSB: Analytical thinking
Question Status: Previous Edition
VE
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
D?
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: Analytical thinking
Question Status: Previous Edition
Learning Goal: Learning Goal 1
