1. Which of the following is not one of the considerations in setting investment objectives? why? A. Risk versus safety of principal B. Maximize wealth versus minimize expenses C. Current income versus capital appreciation D. Short-term versus long-term orientation E. Taxes

2. One of the reasons a short-term trader has difficulty in beating the market is because of: why? A. risk. B. lack of information. C. large institutional investors. D. commissions.

3. What factors must be considered in choosing between investment alternatives? why? A. Risk and liquidity B. Interest or dividends versus capital gains C. Time frame for managing funds and evaluating performance and tax effects D. Safety of principal E. All of the above

4. Only a limited number of corporate securities are distributed by this method: why? A. underwriting. B. best efforts. C. shelf registration. D. syndicated offering. E. direct by issuer.