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.