If you don't want to help then please don't post any funny/rude answers. Oh and I'm not lazy, I just have other important things to worry about, like my 4 mid-term exams that I have to study for. I want to thank those who are genuine enough to help.

Question 1

Investors can be confidently predict future returns on an investment by studying its past performance.
Question 1 answers
True
False

Question 2

The amount an investor is willing to pay for an investment should be determined by the past performance of the investment.
Question 2 answers
True
False

Question 3

In the short term, stock prices tend to rise as inflation rises.
Question 3 answers
True
False

Question 4 text

A capital loss is computed by
Question 4 answers

a.subtracting the original cost of an investment from the proceeds received from the sale of that investment minus any income from the investment.

b.subtracting the original cost of an investment from the proceeds received from the sale of that investment plus any income from the investment.

c.subtracting the proceeds received from the sale of an investment from the original cost of the investment.

d.subtracting the original cost of an investment from the proceeds received from the sale of that investment.

Question 5

Inflation tends to have a favorable impact on
Question 5 answers

a.real estate.

b.common stock.

c.preferred stock.

d.bonds.

Question 6

Stocks in which of the following industries may be impacted by government actions?
Question 6 answers

a.Health Care

b.Housing

c.Defense

d.All of these

Question 7

The financial concept of time value of money is dependent upon the opportunity to earn interest over time.
Question 7 answers
True
False

Question 8

Which one of the following is an example of an annuity?
Question 8 answers

a.the receipt of $50 in January, March, April, June, August, September and December

b.the payment of $259 a month for three consecutive years

c.the payment of $389 in January, $200 in February, and $200 in March

d.the receipt of $100 a month for three months and then $150 a month for two months

Question 9

The holding period is a useful way to compare investments because it considers
Question 9 answers

a.the time value of money

b.only capital gains, but not income

c.both income and capital gains or losses

d.the relative size of investments being compared

Question 10

If you own an investment providing periodic returns, your actual yield on the investment will depend on the reinvestment rate you are able to obtain.
Question 10 answers
True
False

Question 11

Lower risk investments are associated with higher expected rates of return.
Question 11 answers
True
False

Question 12

Liquidity risk is defined as the risk of
Question 12 answers

a.having to trade a security in a broad market.

b.not being able to sell an investment conveniently and at a reasonable price.

c.having inflation erode the purchasing power of your investment.

d.having declining price levels affect the reinvestment rate of your current income stream.

Question 13

Historical returns are of no use in estimating the risk of an investment.
Question 13 answers
True
False

Question 14

Most investors are risk-seeking.
Question 14 answers
True
False