1-You own 100 shares of stock that you bought when the stock price was $30 per share. Assume that you sell your shares for $31 per share one year after you bought them, and youve received dividends during the year totaling $0.50 per share. If youre in the 24 percent federal income tax bracket and your dividends and capital gains both qualify for taxation at the capital gains tax rate, what is your after-tax rate of return?

4.25%

4.00%

0.05%

15%

2-Helen contributes $250 per month to her investment account at the end of each month, earning 4 percent per year after taxes. How much will she have in the account after six years?

$16582

$20306

$15979

$18000

3-You invest in Sandhill Corp. stock at a price of $66.25 per share. At the end of one year, you sell your shares for $74.25 per share and you received a $2.15 per share dividend during the year. What is your return on investment for this period?

14.00%

15.32%

11.64%

8.83%

4-If you believe markets are efficient, which investment would you buy?

Fidelity Uncommon Value Mutual Fund

PIMCO Total Return Fund

S&P 500 Index Fund

Berkshire Hathaway stock

5-A bear market occurs when the market is

generally rising.

generally declining.

very volatile.

fairly stagnant.

6-Actively managed portfolios, such as those run by professional money managers, tend to

perform the same as the market as a whole.

remain uncorrelated to the market at all.

underperform the market as a whole.

outperform the market as a whole.