1.A stock that hasa high beta typically has

a.high market or asset pricerisk.

b.zero market or asset pricerisk.

c.low market or asset pricerisk.

d.returns that match those of bonds.

e.high yield to maturity.

2.The structure of repayment for most long-term bonds consists of

a.fixed coupon payments every year until maturity.

b.interest payments that vary by the yield to maturity each year.

c.fixed coupon payments each year plus the face value or par value at maturity.

d.converted paymentsfrom interest to dividends halfway to the bond's maturity.

e.a balloon payment at maturity.

3.__________stocks are those whose prices tend to move independently or counter to the economy,while ________stocks tend to move with the economy.

a.cyclical;defensive

b.defensive;cyclical

c.growth;income

d.income;growth

e.balanced;growth

4.Suppose that a firm has a price-earnings ratio which is higher than a value deemed to be normal.Investors tend to infer from this information that

a.the firm's bonds will increase in their ratings.

b.the firm's bonds will decrease in their ratings.

c.the firm's stock is over-valued and one should consider selling the stock.

d.the firm's stock is under-valued and one should consider buying the stock.

e.the firm will be paying increased dividends.