Question

The disaster at Chernobyl caused the stock price of U.S. nuclear power plant companies to: Question...

The disaster at Chernobyl caused the stock price of U.S. nuclear power plant companies to:

Question 1 options:

a)

increase.

b)

decrease.

c)

remain the same.

d)

change in an indeterminate direction.

Which statement is NOT true?

Question 4 options:

a)

Portfolio managers should diversify investments.

b)

The promise of higher returns is accompanied by higher risk.

c)

A single investor can consistently beat the market over the long term.

d)

Active stock markets are an important part of the economy.

Which of the following stock portfolios offers the greatest diversification?

Question 7 options:

a)

3M and Raytheon

b)

Adobe Systems and Sara Lee

c)

Nucor and Wyeth

d)

Ashland, Baker Hughes, Bemis, and BMC Software

Investing in the U.S. stock market offers ________ odds than gambling in Vegas or with a local bookie.

Question 8 options:

a)

worse

b)

better

c)

the same

d)

impossible

The field of technical analysis:

Question 9 options:

a)

has been able to beat the market in the long run if enough data is analyzed.

b)

has been unable to consistently beat the market.

c)

is also known as active investing.

d)

is difficult since stock market data is hard to come by.

Suppose 1,000 experts flip a coin once each year, and half say the market will go up while the other half say the market will go down. After 6 years how many experts would have been correct every year?

Question 11 options:

a)

15

b)

62

c)

8

d)

31

Question 15 (3 points)

Popular U.S. stock indexes include:
I. FDIC
II. Dow Jones Industrial Average
III. NASDAQ

Question 15 options:

a)

I and II only

b)

I and III only

c)

II and III only

d)

I, II, and III

Financial returns on houses are _______ over long periods of time because part of the return on housing is from ________.

Question 16 options:

a)

close to zero; the joys of ownership

b)

about 7% per year; homeowner improvements

c)

about 12% per year; paying low property taxes

d)

negative; depreciation

Which is helpful in stock investment strategies?

Question 19 options:

a)

buying undervalued stocks

b)

holding stocks for a long period of time

c)

lucky picks

d)

All of the answers are correct.

Consider the market for ABC Company's stock. What should happen in this market after an announcement that the company is having financial difficulties?

Question 24 options:

a)

The demand for the stock would shift to the left.

b)

The demand for the stock would shift to the right.

c)

The supply of the stock would shift to the left.

d)

The supply of the stock would shift to the right.

In a market of 2,000 investors who each year flip a coin to predict market success or failure, how many investors will have been consistently right after 5 years? (Assume the coin tosses yield heads exactly 50% of the time.)

Question 25 options:

a)

31

b)

62

c)

500

d)

1,000
0 0
Add a comment Improve this question Transcribed image text
Answer #1

1.
Decrease

2.
A single investor can consistently beat the market over the long term

3.
Ashland, Baker Hughes, Bemis, and BMC Software

4.
better

5.
has been unable to consistently beat the market.

6.
=1000*(0.5)^6=15.62500

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