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investments ch 1,2,5,8,11,12 Flashcards | StudBud

Explore/investments ch 1,2,5,8,11,12

The fiscal policy of the federal government excludes

Which of the following is not an investment in the layperson's general use of the term?

investments ch 1,2,5,8,11,12

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Questions 9

Answers

1
Which of the following is not an investment in the layperson's general use of the term?
savings account
equipment
land
stock
2
The fiscal policy of the federal government excludes
the money supply
expenditures
debt management
taxation
3
Which of the following is a fundamental principle of behavior finance?
constructing a diversified portfolio
selling stocks at a loss for tax purposes
the use of P/E ratios
the tendency to avoid acknowledging investment errors
4
For diversification to reduce risk,
one firm offers dividends & the other offers capital gains
the prices of the stocks should be stable
returns on individual stocks should be highly correlated
returns on individual stocks should be negatively correlated
5
Short selling is
selling against the investor's broker's advice
selling an odd lot
selling stock owned for less than a year
selling borrowed securities
6
Securities regulations protect investors by
reducing competition among brokers
stopping investors from buying overpriced stock
requiring disclosures of information by firms
establishing commission schedules
7
Which of the following is a cash outflow?
acquiring inventory
splitting the stock two for one
switching straight-line depreciation to accel. depreciation
retaining earnings
8
Risk
refers to the uncertainty of returns
depends solely on price fluctuations
is reduced through specialization
should be maximized to increase returns
9
The expected return on an investment in stock is
the expected dividend payments
the anticipated capital gains
less than the realized return
the sum of expected dividends and capital gains