ST
Investments: Analysis and
UV
Management – 15th Edition
IA_
TEST BANK
AP
PR
O VE
Charles P. Jones
D?
Comprehensive Test Bank for Instructors
and Students
© Charles P. Jones
All rights reserved. Reproduction or distribution without permission is prohibited.
Created by MedConnoisseur ©2025/2026
,ST
TABLE OF CONTENTS
Investments: Analysis and Management – 15th Edition
UV
Charles P. Jones
IA_
Part 1 – Introduction to Investments
Chapter 1. Understanding Investments
Chapter 3. Indirect Investing
AP
Chapter 2. Investment Alternatives
Chapter 4. Securities Markets and Market Indexes
Chapter 5. How Securities Are Traded
PR
Part 2 – Portfolio and Capital Market Theory
Chapter 6. The Risk and Return from Investing
O
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
VE
Chapter 10. Common Stock Valuation
Chapter 11. Common Stocks: Analysis and Strategy
Chapter 12. Market Efficiency
D?
Part 4 – Security Analysis
Chapter 13. Economy/Market Analysis
Chapter 14. Sector/Industry Analysis
Chapter 15. Company Analysis
Chapter 16. Technical Analysis
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
Chapter 19. Options
Chapter 20. Futures Contracts
Part 7 – Investment Management
Chapter 21. Managing Your Financial Assets
Chapter 22. Evaluating Investment Performance
Created by MedConnoisseur ©2025/2026
,File: ch01: Understanding Investments
ST
Multiple Choice
UV
1.
a.
b.
Which of the following is the best definition of wealth?
The sum of all current and future income
The total of all assets and all income
c.
d.
IA_
Ans: d
The total of assets and income less any liabilities
The sum of current income and the present value of future income
Difficulty: Moderate AP
Ref: Establishing a Framework for Investors
2. Gold coins would be classified as:
a.
b.
c.
real assets.
indirect assets.
personal assets.
PR
d. financial assets. OV
Ans: a
Difficulty: Easy
Ref: Establishing a Framework for Investors ED
3. Technically, investments include:
a. only financial assets. ?
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
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:
a. 401(k) plans.
b. self-directed plans.
c. defined-benefit plans.
d. defined-contribution plans.
Chapter One 1
Understanding Investments
, Ans: c
Difficulty: Moderate
ST
Ref: Establishing a Framework for Investors
5. The investment professionals that arrange the sale of new securities are
called:
UV
a.
b.
c.
arbitragers.
traders.
investment bankers.
d.IA_
Ans: c
specialists.
Difficulty: Moderate
6.
AP
Ref: The Importance of Studying Investments
Another name for stockbrokers is:
a. specialists. PR
b. financial advisors.
c. security analysts.
d. portfolio managers.
Ans: b
Difficulty: Moderate
Ref: The Importance of Studying Investments
OV
7.
ED
Investment professionals who take companies public, arrange mergers and
acquisitions, and participate in municipal bond issues are:
a. registered representatives. ?
b. security analysts.
c. investment bankers.
d. portfolio managers.
Ans: c
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.
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
Ref: The Importance of Studying Investments
Chapter One 2
Understanding Investments
Investments: Analysis and
UV
Management – 15th Edition
IA_
TEST BANK
AP
PR
O VE
Charles P. Jones
D?
Comprehensive Test Bank for Instructors
and Students
© Charles P. Jones
All rights reserved. Reproduction or distribution without permission is prohibited.
Created by MedConnoisseur ©2025/2026
,ST
TABLE OF CONTENTS
Investments: Analysis and Management – 15th Edition
UV
Charles P. Jones
IA_
Part 1 – Introduction to Investments
Chapter 1. Understanding Investments
Chapter 3. Indirect Investing
AP
Chapter 2. Investment Alternatives
Chapter 4. Securities Markets and Market Indexes
Chapter 5. How Securities Are Traded
PR
Part 2 – Portfolio and Capital Market Theory
Chapter 6. The Risk and Return from Investing
O
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
VE
Chapter 10. Common Stock Valuation
Chapter 11. Common Stocks: Analysis and Strategy
Chapter 12. Market Efficiency
D?
Part 4 – Security Analysis
Chapter 13. Economy/Market Analysis
Chapter 14. Sector/Industry Analysis
Chapter 15. Company Analysis
Chapter 16. Technical Analysis
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
Chapter 19. Options
Chapter 20. Futures Contracts
Part 7 – Investment Management
Chapter 21. Managing Your Financial Assets
Chapter 22. Evaluating Investment Performance
Created by MedConnoisseur ©2025/2026
,File: ch01: Understanding Investments
ST
Multiple Choice
UV
1.
a.
b.
Which of the following is the best definition of wealth?
The sum of all current and future income
The total of all assets and all income
c.
d.
IA_
Ans: d
The total of assets and income less any liabilities
The sum of current income and the present value of future income
Difficulty: Moderate AP
Ref: Establishing a Framework for Investors
2. Gold coins would be classified as:
a.
b.
c.
real assets.
indirect assets.
personal assets.
PR
d. financial assets. OV
Ans: a
Difficulty: Easy
Ref: Establishing a Framework for Investors ED
3. Technically, investments include:
a. only financial assets. ?
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
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:
a. 401(k) plans.
b. self-directed plans.
c. defined-benefit plans.
d. defined-contribution plans.
Chapter One 1
Understanding Investments
, Ans: c
Difficulty: Moderate
ST
Ref: Establishing a Framework for Investors
5. The investment professionals that arrange the sale of new securities are
called:
UV
a.
b.
c.
arbitragers.
traders.
investment bankers.
d.IA_
Ans: c
specialists.
Difficulty: Moderate
6.
AP
Ref: The Importance of Studying Investments
Another name for stockbrokers is:
a. specialists. PR
b. financial advisors.
c. security analysts.
d. portfolio managers.
Ans: b
Difficulty: Moderate
Ref: The Importance of Studying Investments
OV
7.
ED
Investment professionals who take companies public, arrange mergers and
acquisitions, and participate in municipal bond issues are:
a. registered representatives. ?
b. security analysts.
c. investment bankers.
d. portfolio managers.
Ans: c
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.
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
Ref: The Importance of Studying Investments
Chapter One 2
Understanding Investments
