Chaminade Univ MBA 754 (Investment Mgmt) Week 3 – Ch. 03 Quiz (Graded)
Grading SummaryThese are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. Date Taken: Time Spent: Points Received: Question Type: # Of Questions: Multiple Choice 20 Grade Details - All QuestionsQuestion 1. Question : Which one of the following indexes reflects the percentage change in share prices relative to a base of 100? Student Answer: Value Line composite S & P 500 DJIA AMEX composite Question 2. Question : Many brokerage firms require that disputes between individual investors and brokers be settled through litigation. Student Answer: True False Question 3. Question : Current price information on shares of a company's stock is often accompanied by statistics on the recent price behavior of that stock. Student Answer: True False Question 4. Question : Which one of the following is considered a general rather than a financial newspaper? Student Answer: Barron's New York Times The Wall Street Journal Investors' Business Daily Question 5. Question : A stop-loss order converts to a market order when the order is activated. Student Answer: True False Question 6. Question : Stockbrokers are to execute client orders at the best possible price. Student Answer: True False Question 7. Question : When placing an order online, an individual investor should always double check the ticker symbol prior to submitting the order. Student Answer: True False Question 8. Question : A brokerage firm which provides analyst reports, investment advice and information as well as online brokerage services is called a(n) Student Answer: premium discount broker. full-service broker. basic discount broker. electronic broker. Question 9. Question : It is generally a good idea to use limit orders when purchasing IPOs online. Student Answer: True False Question 10. Question : A limit order is an order to buy or sell at the limit price or less. Student Answer: True False Question 11. Question : An index measures the current value of a group of stocks in relation to a base value established previously. Student Answer: True False Question 12. Question : The documents signed when a customer opens a brokerage account Student Answer: serve as an informal relationship between the customer and the stockbroker. limit the customer to dealing only through that brokerage firm. may be signed by a minor child provided that the money being invested belongs to the child. establish a legal relationship between the customer and the brokerage firm. Question 13. Question : Which one of the following statements is true concerning bonds? Student Answer: A bond yield represents only the interest earned on a bond. Bond yield data is more useful to an investor when compared over time. A bond's yield remains constant even when a bond is sold prior to maturity. Bonds with similar characteristics generally have widely disparate bond yields. Question 14. Question : The Standard & Poor's indexes are all based on market values which consider the number of shares outstanding. Student Answer: True False Question 15. Question : Reviewing industry and company information will help provide guidance on the future outlook of a particular firm. Student Answer: True False Question 16. Question : The Dow Jones Industrial Average (DJIA) consists of 30 stocks whose price behavior Student Answer: typically has little correlation with the rest of the stock market. broadly reflects the overall price behavior of the stock market. reflects the changes in value of manufacturing stocks only. leads the movements in the general economy by one to two weeks. Question 17. Question : Which one of the following is NOT published by the US Government? Student Answer: Federal Reserve Bulletin Survey of Current Business Kiplinger Washington Letter Economic Report of the President Question 18. Question : Stock market averages and indexes are commonly used to measure the Student Answer: specific behavior of companies. general behavior of stock prices. specific behavior of alternative investments. specific behavior of the economy. Question 19. Question : An individual can sort stocks by dividend rates, growth rates, and price/earnings ratios using screening tools on the Internet. Student Answer: True False Question 20. Question : Averages and indexes differ from one another in that an index Student Answer: is the arithmetic average price behavior of a group of stocks at a given point in time. measures the current price behavior of a group of stocks in relation to a base value set at an earlier point in time. is of value in-and-of itself, whereas an average must be compared to a historical figure to have any meaning. always moves up before a corresponding average moves up, and always moves down before a corresponding average moves down.