Part 3 Investments Exam Review

Healthcare is an example of a sector.

• True

• False

The diamonds (DIA) , spiders (SPY) and bears (BBB) are known as exhange traded funds.

• True

• False

A mutual fund that minimizes risk by investing in all stocks (equities) is a balanced fund.

• True

• False

Municipal bonds are typically more risky than corporate bonds

• True

• False

Treasury bills are the shortest investment, while treasury bonds are the longest.

• True

• False

A stock represents ownership in a company.

• True

• False

A bond represents ownership in a company.

• True

• False

A Beta number greater than "1" is considered to be more volatile than the S&P 500.

• True

• False

Preferred stock holders have complete voting rights and no guaranteed dividend.

• True

• False

Small cap companies are considered less stable with more price fluctuation of the stock.

• True

• False