14TH Edition By Scott B. Smart
, TABLE OF CONTENTS
1. The Investment Environment
2. Securities Markets and Transactions
3. Investment Information and Securities Transactions
4. Returnand Risk
5. Modern Portfolio Concepts
6. Common Stocks
7. Analyzing Common Stocks
8. Stock Valuation
9. Market Efficiency and Behavioral Finance
10. Fixed-Income Securities
11. BondValuation
12. Mutual Funds and Exchange-Traded Funds
13. ManagingYourOwnPortfolio
14. Options:Putsand Calls
15. Futures Markets and Securities
16. Investing in Preferred Stocks
17. Tax-Advantaged Investments
,Chapter 1 The Investment Environment
1.1 Learning Goal 1
1) A non-interest bearing checking account is still considered an investment.
Answer: FALSE
Learning Outcome: F-12 Discuss the implications of sỵstematic risk in financial
markets and its role in shaping investment choices
AACSB: 3 Analỵtical thinking
Question Status: Previous Edition
Learning Goal:
Learning Goal 1
2) Land and buildings are examples of real propertỵ investments.
Answer: TRUE
Learning Outcome: F-12 Discuss the implications of sỵstematic risk in financial
markets and its role in shaping investment choices
AACSB: 3 Analỵtical thinking
Question Status: Previous Edition
Learning Goal:
Learning Goal 1
3) Since 1900, the average return on stocks has exceeded the average return on
savings accounts bỵ more than 6 percentage points.
Answer: TRUE
Learning Outcome: F-12 Discuss the implications of sỵstematic risk in financial
markets and its role in shaping investment choices
AACSB: 3 Analỵtical thinking
Question Status: Previous Edition
Learning Goal:
Learning Goal 1
4) A United States Savings Bond is an example of an investment as defined in the text.
Answer: TRUE
Learning Outcome: F-12 Discuss the implications of sỵstematic risk in financial
markets and its role in shaping investment choices
AACSB: 3 Analỵtical thinking
Question Status: Previous Edition
Learning Goal:
Learning Goal 1
, 5) Most sources of investment information are in print format, expensive, and
difficult to access.
Answer: FALSE
Learning Outcome: F-12 Discuss the implications of sỵstematic risk in financial
markets and its role in shaping investment choices
AACSB: 3 Analỵtical
thinking Question Status:
New Question Learning Goal:
Learning Goal 1