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Before investing, its essential that the investor first A. determine his or her net worth. B. thoroughly research and hire a professional planner. C. construct

  1. Before investing, its essential that the investor first

    A. determine his or her net worth. B. thoroughly research and hire a professional planner. C. construct a financial plan. D. define his or her goal.

  2. If a U.S. investor buys the stock of a corporation in Mexico, the investor will certainly sus- tain a loss if the stock price

    A. falls and the value of the peso rises. B. rises and the value of the peso rises. C. falls and the value of the peso falls. D. rises and the value of the dollar rises.

  3. When an investor buys an ETF, he or she

    A. knows the return will be based on the movement of dollar cost of the currency purchased. B. is sure of little fluctuation in the value of his or her currency. C. physically holds the currency purchased. D. counts on impure play of one currencys value versus anothers.

  4. A 30-year-old with a portfolio of $50,000 with projected earnings of five percent per year can expect the portfolio to be worth _______ at age 60.

    A. $216, 097.12 C. $132,195.27 B. $160,972.13 D. $108,049.16

  5. The single most influential variable in determining investment returns is

    A. heavy reliance upon index mutual funds. B. selection of a fee-only investment advisor experienced in asset allocation. C. selection of low-cost, high-performing mutual funds. D. asset allocation decisions driven by investment policy.

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