Test Bank — Investments: Analysis and Management, 15th Edition — by Charles P. Jones and Gerald R. Jensen

Investments: Analysis and
Management – 15th Edition
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TEST BANK
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Charles P. Jones
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Comprehensive Test Bank for Instructors
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and Students
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© Charles P. Jones

All rights reserved. Reproduction or distribution without permission is prohibited.


Created by MedConnoisseur ©2025/2026

, TABLE OF CONTENTS
Investments: Analysis and Management – 15th Edition
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Charles P. Jones


Part 1 – Introduction to Investments
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Chapter 1. Understanding Investments
Chapter 2. Investment Alternatives
Chapter 3. Indirect Investing
Chapter 4. Securities Markets and Market Indexes
Chapter 5. How Securities Are Traded
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Part 2 – Portfolio and Capital Market Theory

Chapter 6. The Risk and Return from Investing
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Chapter 7. Portfolio Theory
Chapter 8. Portfolio Selection and Asset Allocation
Chapter 9. Capital Market Theory and Asset Pricing Models

Part 3 – Common Stocks: Analysis, Valuation, and Management
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Chapter 10. Common Stock Valuation
Chapter 11. Common Stocks: Analysis and Strategy
Chapter 12. Market Efficiency

Part 4 – Security Analysis
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Chapter 13. Economy/Market Analysis
Chapter 14. Sector/Industry Analysis
Chapter 15. Company Analysis
Chapter 16. Technical Analysis
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Part 5 – Fixed-Income Securities: Analysis, Valuation, and Management

Chapter 17. Bond Yields and Prices
Chapter 18. Bonds: Analysis and Strategy

Part 6 – Derivative Securities
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Chapter 19. Options
Chapter 20. Futures Contracts

Part 7 – Investment Management
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Chapter 21. Managing Your Financial Assets
Chapter 22. Evaluating Investment Performance



Created by MedConnoisseur ©2025/2026

, File: ch01: Understanding Investments



Multiple Choice
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1. Which of the following is the best definition of wealth?

a. The sum of all current and future income
b. The total of all assets and all income
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c. The total of assets and income less any liabilities
d. The sum of current income and the present value of future income

Ans: d
Difficulty: Moderate
Ref: Establishing a Framework for Investors
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2. Gold coins would be classified as:

a. real assets.
b. indirect assets.
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c. personal assets.
d. financial assets.

Ans: a
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Difficulty: Easy
Ref: Establishing a Framework for Investors

3. Technically, investments include:

a. only financial assets.
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b. only marketable assets.
c. financial and real assets that are marketable or non-marketable.
d. only financial and real assets that are marketable.

Ans: c
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Difficulty: Easy
Ref: Establishing a Framework for Investors

4. The retirement plans that guarantee retirees a set amount of money each month
are known as:
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a. 401(k) plans.
b. self-directed plans.
c. defined-benefit plans.
d. defined-contribution plans.
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Chapter One 1
Understanding Investments

, Ans: c
Difficulty: Moderate
Ref: Establishing a Framework for Investors

5. The investment professionals that arrange the sale of new securities are
called:
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a. arbitragers.
b. traders.
c. investment bankers.
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d. specialists.

Ans: c
Difficulty: Moderate
Ref: The Importance of Studying Investments
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6. Another name for stockbrokers is:

a. specialists.
b. financial advisors.
c. security analysts.
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d. portfolio managers.

Ans: b
Difficulty: Moderate
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Ref: The Importance of Studying Investments

7. Investment professionals who take companies public, arrange mergers and
acquisitions, and participate in municipal bond issues are:

a. registered representatives.
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b. security analysts.
c. investment bankers.
d. portfolio managers.

Ans: c
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Difficulty: Moderate
Ref: The Importance of Studying Investments

8. One reason for the declining importance of pension funds is the:

a. decrease in pension benefits for workers.
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b. downsizing of U.S. companies.
c. large number of conversions into self-directed plans.
d. increasing number of federal regulations that restrict pension fund portfolios.

Ans: c
Difficulty: Difficult
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Ref: The Importance of Studying Investments

Chapter One 2
Understanding Investments