QUESTION 7

1. ___________ stock typically does not include voting rights, but has less price volatility than __________ stock.

   		Common; preferred
   		Penny; common
   		Common; penny
   		Preferred; common

1 points

QUESTION 8

1. The market in which outstanding shares of stock are traded is the _________ market. This market makes the shares liquid.

   		tertiary
   		secondary
   		preferred
   		primary

1 points

QUESTION 9

1. Why do stock prices move (according to Ken French)?

   		Disagreements about the future value of a company among investors.
   		None of the reasons given cause stock prices to move.
   		Disagreements about the facts (e.g. financial ratios) of a company among investors.
   		Disagreements about the facts (e.g. GDP) of an economy among investors.

1 points

QUESTION 10

1. An example of interest rate risk is:

   		When you buy a bond in a foreign currency and the value of that foreign currency increases.
   		When you buy a bond in a foreign currency and the value of that foreign currency goes down.
   		When you buy a bond that pays 4% and the following month interest rates go to 3.5% thereby making the bond more valuable.
   		When you buy a bond that pays 4% and the following month interest rates go to 5% thereby making the bond less valuable.