1) The money supply, defined as M1, includes currency, coins, and checking accounts.
2) Holding period returns for greater than a year do not give an accurate measure of the
true rate of return.
3) The per share net asset value of the shares in a closed-end investment company
depends on the difference between the fund’s assets and liabilities and the number of
shares outstanding.
4) Aggregate measures of stock prices include dividend income.
5) A onefortwo reverse split increases a stocks price.
6) The dispersion around a stock’s return is one measure
of risk.
7) There is no secondary market for EE bonds.
8) If the hedge ratio is 0.7, the number of call options necessary to offset a long position
in a stock is 7.0.
9) If the value of the stock rises, the value of a convertible bond falls.
10) Preferred stock pays a fixed amount of interest.