7) Your professor purchases shares of JSDA and it immediately loses 47.07 percent of its value What percentage increase is necessary to break even (ignoring transaction costs)? a, 47.07% b. 62.58% c. 70.74% d. 88.93% 8) Dollar cost averaging is a. periodically buying a round lot of stock b. periodically investing a specified dollar amount in a stock c. a means to increase the average cost basis d. a means to insure a positive return 9) If a stock rose from S10 to $30 over ten years, the true annual rate of return a. was less than 20 percent b. was 20 percent c. was greater than 20 percent d. cannot be determined 10) Which of the following is the least broad-based measure of stock prices? a. Nasdaq market index b. S&P 500 stock index c. Dow Jones industrial average d. Russell 3000 11) A federal government deficit may be financed by 1. the general public buying government bonds 2. commercial banks buying treasury bills 3. the Federal Reserve selling securities a. 1 and 2 b. 1 and 3 c. 2 and 3 d. all of the above 12) If the Federal Reserve lowers the target federal funds rate, a. the discount rate rises b. liquidity in the banking system is increased c. securities prices fall d. required reserves are decreased 7) Your professor purchases shares of JSDA and it immediately loses 47.07 percent of its value What percentage increase is necessary to break even (ignoring transaction costs)? a, 47.07% b. 62.58% c. 70.74% d. 88.93% 8) Dollar cost averaging is a. periodically buying a round lot of stock b. periodically investing a specified dollar amount in a stock c. a means to increase the average cost basis d. a means to insure a positive return 9) If a stock rose from S10 to $30 over ten years, the true annual rate of return a. was less than 20 percent b. was 20 percent c. was greater than 20 percent d. cannot be determined 10) Which of the following is the least broad-based measure of stock prices? a. Nasdaq market index b. S&P 500 stock index c. Dow Jones industrial average d. Russell 3000 11) A federal government deficit may be financed by 1. the general public buying government bonds 2. commercial banks buying treasury bills 3. the Federal Reserve selling securities a. 1 and 2 b. 1 and 3 c. 2 and 3 d. all of the above 12) If the Federal Reserve lowers the target federal funds rate, a. the discount rate rises b. liquidity in the banking system is increased c. securities prices fall d. required reserves are decreased