Investments

Treasury bonds pricing quotations reveal an ask price of 104.75 and a bid price of 104.150. As a seller of the bond, what is the dollar price you expect to receive?

		$1,048.00
		$1,042.50
		$1,041.50
		$1,041.75
		$1,040.40

Cynthia Stephens portfolio consists of 30% common stocks, 40% bonds, 15% foreign securities and 15% short-term securities. This asset allocation would be considered to be:

		aggressive.
		moderate
		conservative
		passive.

The exchange is found to be paying a 1% real rate of return. Inflation is expected to be 3%. JMS stock commands an 8% risk premium. What is the expected rate of return on JMS stock?

		1%
		4%
		9%
		12%

Jedediah places an order to buy 525 shares of stock. This is an order for:

		five round lots and one odd lot.
		21 round lots of 25.
		one odd lot.
		five hundred round lots and twenty-five odd lots.

If an investor does not respond to a margin call, the broker will:

		sell enough of the investor's holdings that the margin account can be closed.
		sell some of the investor's holdings to cover the margin call.
		notify the Federal Reserve so they can cover the call.
		sell all of the investor's holdings and close their brokerage account.

Identify among the following which represent investment goals?

I. saving for major expenditures such as a house or education

II. sheltering income from taxes

III. increasing current income

IV. saving funds for retirement

		I and IV only
		III and IV only
		I, III and IV only
		I, II, III and IV

Which type of investment return should result in the highest investment return over time?

		dividends
		preferred dividends
		capital gains
		bond interest