QUESTION 1

1. The basic premise of _________________is that past trends in market movements can

   be used to forecast or understand the future.

   	a.	the Efficient Market Hypothesis
   	b.	fundamental analysis
   	c.	technical analysis
   	d.	none of the above

2 points

QUESTION 2

1. The essence of _________is to determine whose judgment about the market is wrong.

   	a.	key indicators
   	b.	smart money rules
   	c.	contrary opinion rules
   	d.	none of the above

2 points

QUESTION 3

1. The most important feature of municipal bonds is

   	a.	the wide range of denominations and maturities
   	b.	the interest is not taxable by the federal government
   	c.	the risk-free nature of this investment
   	d.	its appeal to investors needing growth

2 points

QUESTION 4

The total return an investor would receive from income plus capital appreciation

assuming a bond is held to maturity is called the

	a.	Call premium
	b.	Current yield
	c.	Yield to maturity
	d.	More than one of the above

2 points

QUESTION 5

1. What is the price today of a $1,000 bond with a coupon rate of 10 percent and a

   current yield of 8 percent over 3 years? (round to the nearest whole dollar)

   	a.	$1,000
   	b.	$800
   	c.	$920
   	d.	$1,052