Helen bought $3240 in stock and held it for one year. She paid $65 per share in cash, received no dividends, and sold the shares for $70 per share one year later. Ignoring transaction costs, what was her return on investment?

3%

32%

7%

8%

If a stock is trading at $50 and has a quarterly dividend of $0.55, the dividend yield on the stock is

5.5%.

1.1%.

4.4%.

5.0%.

Owners of sole proprietorships generally have ____ personal liability than owners of corporations.

no

more

less

the same

The price of a convertible bond is more likely to rise when the underlying stock price

declares a dividend.

pays a dividend.

declines.

rises.

Chris is considering purchasing some preferred stock from Wildhorse Corp. The company pays a $6 annual dividend per share on its preferred stock, and similar risk companies are earning 8% annual returns. What should be the value of the stock per share?

$4.80

$750.00

$48.00

$75.00

The primary objective of a growth fund is

capital appreciation.

tax-exempt income.

income.

undervalued investments.

A more actively managed mutual fund will generally have a_____ expense ratio than a fund that is ____ active.

higher; less

higher; more

lower; less

lower; not

Of the following benefits of investing in mutual funds, which pertains to the ability to immediately sell your shares at market price?

Withdrawal option

Dividend reinvestment

Diversification

Liquidity

If you purchase a residential rental property for $320000 that includes a building worth $105000, how much will you be able to deduct per year from your rental income if the IRS allows you to spread the cost of your initial investment over 27.5 years?

$11636

$15455

$3818

$7818

Futures and options are often speculative securities

but can also be used to reduce risk in your underlying portfolio.

and a poor choice to leverage your underlying portfolio.

but can also be used to provide diversification to an underlying portfolio.

and a poor choice to reduce risk in your underlying portfolio.