Questions 21-24

QUESTION 21 You own a AAA rated bond issued by Widgets, Inc. Moody's lowers Widget's bond rating to A-. What do you expect to happen to the price of your bond There will be no effect on the price The price will go up because Widgets has less risk of default There isn't enough information to answer this question The price will go down because of its increased risk of default QUESTION 22 Generally speaking, most individual investors should focus on purchasing load' mutual funds, because they don't know enough to invest on their True own, False QUESTION 23 Your favorite rich uncle gives you 515.000 for your birthday. You inwest it in the Fly by Night growth fund that has averaged 6% annual rate of return over the past several years. How much do you expect your investment to be wornt in 20 years? 4,677 48,106.50 172.048.50 0 551,743 QUESTION 24 Tyson identifies a number of reasons why real estate can be a good investment. The bie Buy isnt making any more of it! ego gratification diversification loverace limited supply 10