quiz 3 answers investments

0 out of 1 points

Which of the following is excluded from an individual's cash budget?

Selected Answer: social security tax payments
Answers:
wages and salary

retirement account

social security tax payments

alimony

Question 2
0 out of 1 points

One means to adjust for risk is

Selected Answer: to divide each funds' return by the return on the market
Answers:

standardize funds' return by their beta coefficients

compute their rates of return including both income and capital gain distributions

standardize funds' costs by an aggregate index of mutual fund expenses

to divide each funds' return by the return on the market

Question 3
0 out of 1 points

An index fund limits its portfolio to

Selected Answer: stocks that respond to changes in the consumer prices (i.e., Consumer Price Index)
Answers:
high quality securities

stocks that respond to changes in the consumer prices (i.e., Consumer Price Index)

stocks included in an aggregate measure of stock prices

stocks of firms in a particular industry

Question 4
1 out of 1 points

Which of the following is not a consideration for investing in real estate investment trusts (REITs)?

Selected Answer: the federal tax rate paid by the trust
Answers:
fluctuations in dividend payments

excessive use of debt financing by some REITs

fluctuating interest rates affecting securities valuations

the federal tax rate paid by the trust

Question 5
1 out of 1 points

Closed-end investment companies
1.
have a fixed capital structure
2.
issue new stock whenever an individual buys shares
3.
may sell for a premium over net asset value
4.
must sell for their net asset value

Selected Answer: 1 and 3
Answers:

1 and 3

1 and 4

2 and 3

2 and 4

Question 6
1 out of 1 points

No load mutual funds may increase fees through
1.
sales charges
2.
commissions
3.
12b-1 plans

Selected Answer: only 3
Answers:
1 and 2

1 and 3

2 and 3

only 3

Question 7
1 out