Q1:

Closed-end investment companies_______________.

A: are the most common type of investment companies.

B: redeem their shares directly from investors.

C: issue a limited and fixed number of shares.

D: buy and sell shares at net asset value.

Q2: Systematic risk is composed of which of the following?

A: Business risk

B: Callable risk

C: Financial risk

D: none of above

Q3: Capital Appreciation is __________.

A: paid by the company each year.

B: interest received off of a bond that is paid each quarter.

C: when you can sell the asset for more than you purchased it for.

D: when you have an investment that is a government bond only.

Q4:What risk cannot be eliminated through diversification?

A: business risk

B: market risk

C: financing risk

D: industry risk

Q5:Common stock can be described as _________.

A: ownership of the company with nothing else promised.

B: being closer as a bond than an investment C.D.

C: having a guaranteed fixed dividend.

D: not being a go investment.

Q6: A bonds coupon rate explains to you what about the bond?

A:when the bond matures.

B: current yield.

C: payment amount of par value.

D: payment amount of current value.

Q7: A callable bond can be called by_________.

A: issuing company

B: holder of bond

C: government officials

D: phone companies only

Q8: Which of the following is the most diversified investment?

A: owning only one companys stock.

B: owning a mutual fund

C: owning your own business

D: putting your money under your mattress

Q9: Over the long run which investment vehicle has the most risk?

A: Municipal bonds

B: Government Securities

C: Stocks

D: Savings account

Q10: Which one of the following companies is grading system using in the United States to rate corporate bonds?

A: One Bond

B: Rater's-r-us

C: IBM

D: Moody's