Selecting Your Investments

The Dow Jones Industrial Average represents

• a stock index that represents 30 companie

• the most popular companies on the NYSE

• the 100 largest companies in America

An industry is composed of

• multi-national competitors

• corporations with similar products and services

• industrial businesses working togethe

If a share of a mutual fund cost $9 a year ago and costs $15 today, it means the NAV increased how much per share?

• 33%

• 20%

• 66%

To be diversified, a portfolio must hold bonds as well as stocks.

• True

• False

Large cap, mid caps and small caps are descriptions of:

• mutual funds

• company size and market value

• stock market exchanges

The S&P 500, the Nasdaq 100 and the Russell 2000 are examples of:

• a stock report

• stock exchanges

• stock indices

Dividing a stock’s current price per share by the issuing company’s earnings per share results in

• the profit margin of the company

• the price to earnings ratio

• the stock’s current price

Lin has $4,000 in Dell Computer stock, $2,500 in BioMed stock, $1,500 in 1stBank stock and $2,000 in a government bond. A broker tells Lin that her portfolio is not diversified enough. Lin should probably:

• sell some of her stock and buy a mutual fund

• sell the government bond and buy a mutual fund

• sell the Dell Computer stock and buy another bond

If you know that the ticker symbol for Microsoft is MSFT, on which exchange is it listed?

• NYSE

• AMEX

• NASDAQ

Stocks, bonds and cash are all part of a:

• initial public offering

• industry sector

• financial growth plan