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WorksheetsQuiz II Review CFM II
Total questions: 12
Worksheet time: 6mins
Which of the following best characterizes an economic cycle?
The economy will continue on an upwards trend
The natural progression of growth and retraction that occurs in the market
The tendency for economies to copy one another in order to become the strongest
The concept that all companies will even out over time
Which of the following is NOT a reason a company would expand to a foreign market?
growth
new products / services
to provide new services to existing (current) clients
expand sales for existing products
What is Dollar Cost Averaging?
You invest the same amount over a given time period to avoid mistiming the market.
You are able to change past investments to "average" the purchase price with a new investment.
Your investment is adjusted for inflation.
Maximizes your short-term return on investments.
A Beta risk level score of less than 1 indicates that the investment is:
More volatile than the market
Less volatile than the market
Adjusted for inflation
Maximizing short-term return on investments
A Beta risk level score of greater than 1 indicates that the investment is:
More volatile than the market
Less volatile than the market
Adjusted for inflation
Maximizing short-term return on investments
Match the description that best fits each term: Quick, short-term, returns based on fluctuations in price.
Trading
Investing
Both Trading and Investing
Neither Trading nor Investing
Match the description that best fits each term: Long term strategy to grow asset value through market cycles.
Trading
Investing
Both Trading and Investing
Neither Trading nor Investing
Earnings per share (EPS) is used for all of the following EXCEPT:
Used to compare companies rather than looking at stock price.
Estimates corporate value by comparing how much is made against the number of shares outstanding (that exist)
Used as a gauge for investors to find value if they believe profit is higher relative to price.
Dictates dividend payment.
Which investment type functions similar to a stock in that you have to buy and sell shares to realize gains?
Mutual Funds
ETFs
Both
Neither
Which investment type can be pegged (mirror) an index as an investment strategy?
Mutual Funds
ETFs
Both
Neither
Which word most closely describes what a bond is?
Stock
Ownership
Guarantee
Loan
Bonds are generally considered _______ than stock since __________.
safer; they have a set interest rate (return on investment)
riskier; the return is better
