QUESTION 1 1 points Save Anwer A strategy of averaging down will be profitable if Oa the price of the stock subsequently rises Ob. the firm retains eamings OG the price of the stock continues to fall Od.the firm pays more dividends QUESTION 2 1 points Save Answer An investment's internal rate of return equates Oa. initial cash outflow and the sale price b dividend payments and the investment's cost O c. cash outflows and subsequent cash inflows Od dividend payments and capital gains QUESTION 3 1 points Save Anewer Dollar cost averaging is Oa. periodically investing a specified dollar amount in a stock Ob periodically buying a round lot of stock Oe. a means to increase the average cost basis Od a means to insure a positive returm QUESTION 4 1 points Save Answer Historical studies of rates of return on large stocks suggest Oa dividends account foe over balf the retura Ob over a period of years, dhe rate approximates 9-10 percent Oc. oquity investors rarcly sustain losse Od the average return is about 64 percent annually QUESTION 5 1 points Save Answer If a stock rose from $10 to S30 over ten years, the annual rate of return Oa. was less than 20 percent Ob was 20 percent Oc. was greater than 20 percent Od cannot be determined QUESTION 6 1 points Save Answer Movements in individual stock prices tend to be Oa positively corerelated with inflation Ob negatively cornelated Oc positively cormelated with changes in interest rates Od positively comelatod QUESTION 7 1 points Save Answer The Russell 1000 index O a uses the 1000 largest Nasdag stocks ?bis a broad measure of lated and over-thecountet (Nadaq, slacks Oc. is a broad-based measure of bonds Od combines 1000 stocks and bonds