FPQP Module 6
Which of the following rights do owners of common stock normally have?
1) Voting rights
2) Dividend rights
3) Preemptive rights - answer1,2,3
Returns from common stock are in the form of - answerDividends and capital
appreciation
Which of these assets is considered the most liquid? - answerMoney Market Mutual
Funds
A general disclosure of the annual operating expenses of a mutual fund is represented
by - answerExpense Ratio
Which of the following is NOT a type of systematic risk? - answerEvent
Which of the following types of debt is issued by municipalities? - answerRevenue
Bonds
A general risk component representing the variability of a stock's total return as it
directly relates to overall movements in the general economy is known as -
answerSystematic Risk
A privately held company may go public through - answerMaking an initial public
offering (IPO)
Leslie purchased a 10-year bond with an annual coupon rate of 4.75% paid
semiannually. The bond has a current market price of $1,035. What is the bond's yield
to maturity (YTM)? - answer4.32%
Which of these is a disadvantage of investing in real estate? - answerIlliquidity
Which of these is the risk that can be eliminated with a well-diversified portfolio? -
answerUnsystematic Risk
Jason wants to purchase a bond that will provide him a steady income with low default
risk. As a result, he wishes to purchase an investment-grade bond through his
stockbroker. Among these choices, what would be the lowest bond rating by Standard &
Poor's that would still be considered investment grade? - answerBBB
Which of the following rights do owners of common stock normally have?
1) Voting rights
2) Dividend rights
3) Preemptive rights - answer1,2,3
Returns from common stock are in the form of - answerDividends and capital
appreciation
Which of these assets is considered the most liquid? - answerMoney Market Mutual
Funds
A general disclosure of the annual operating expenses of a mutual fund is represented
by - answerExpense Ratio
Which of the following is NOT a type of systematic risk? - answerEvent
Which of the following types of debt is issued by municipalities? - answerRevenue
Bonds
A general risk component representing the variability of a stock's total return as it
directly relates to overall movements in the general economy is known as -
answerSystematic Risk
A privately held company may go public through - answerMaking an initial public
offering (IPO)
Leslie purchased a 10-year bond with an annual coupon rate of 4.75% paid
semiannually. The bond has a current market price of $1,035. What is the bond's yield
to maturity (YTM)? - answer4.32%
Which of these is a disadvantage of investing in real estate? - answerIlliquidity
Which of these is the risk that can be eliminated with a well-diversified portfolio? -
answerUnsystematic Risk
Jason wants to purchase a bond that will provide him a steady income with low default
risk. As a result, he wishes to purchase an investment-grade bond through his
stockbroker. Among these choices, what would be the lowest bond rating by Standard &
Poor's that would still be considered investment grade? - answerBBB
