WorksheetsPersonal Finance Chapter 13
Total questions: 10
Worksheet time: 16mins
Ownership investments generally
Offer a fixed rate of return
Have a set maturity date
Offer a limited return
Produce capital gains
A stock
Represents a share of ownership in a corporation
Represents a debt owed by a business or organization
Is a portfolio
An example of leverage
Financial risk relates to the possibility that the investment
Will fail to pay a return to the investor
Is subject to sharp price changes
Will fall in value
Is illiquid
Selling shares of stock for more than you originally paid is called
Modern portfolio theory
Leverage
Current income
Capital gain
_______ is (are) the portion of a company‘s profits that the firm pays out to its shareholders
Rent
Dividends
Interest
Net income
Marc purchased 100 shares of LXM stock for $25 per share and sold the same stock two years later for $28 per share. He paid commissions of $50 when he bought, and $55 when he sold. No dividends were paid. Mark‘s current income from this investment is ________, and his capital gains were _______
$0 ; $195
$0 ; $300
$195 ; $0
$300 ; $0
Marla purchased 100 shares of JAX stock for $30 per share and sold the same stock one year later for $29 per share. She paid commissions of $50 when she purchased, and $45 when she sold. Dividends of $2 per share were paid during the year. The capital loss on this stock transaction was
$100
$145
$150
$195
Joelle purchased 100 shares of PAC stock for $20 per share and sold this same stock one year later for $25 per share. She paid commissions of $60 when she purchased, and $70 when she sold. Dividends of $2 per share were paid during the year. The total rate of return on this investment was
9.71%
17.96%
28.50%
33.98%
Which of the following investments has the lowest risk?
T-bills (Treasury)
Municipal Bonds
Income Stocks
Real Estate
You can accept ______ risk when investing for long-term goals
Unlimited
More
Less
No
