Chapter 13 – Investing Fundamentals
90. (p. 441-442) Which one of these investments pools the funds of many investors and hires a
professional money manager to manage those funds?
91. (p. 441-442) Which one of the following is a true statement?
92. (p. 441-442) Hugh Jackman is thinking about buying an investment. The investment option
that he is thinking about buying is an investment where investors pool their money. One of the
key features is that it is managed by professional managers. What investment is Hugh
thinking about purchasing?
Chapter 13 – Investing Fundamentals
93. (p. 442) Chris O’Donnell is thinking about investing in an investment that is high-risk in the
hopes of earning a relatively large profit in a short amount of time. Which investment is he
most likely considering?
94. (p. 442) Bob McDowell is thinking about buying an investment. The most important
consideration when making this investment is the location of the investment. What investment
is Bob thinking about purchasing?
95. (p. 441-442) Which one of the following is false?
Chapter 13 – Investing Fundamentals
96. (p. 442) Which one of the following is a true statement?
97. (p. 442) Which one of the following would not be considered a safe investment for a
conservative investor?
98. (p. 441) Which one of the following investments would provide the most predictable source
of income?
Chapter 13 – Investing Fundamentals
99. (p. 442) For an investor who wants to speculate, which of the following investments would
be appropriate?
100. (p. 443) Which of the following statements is true?
101. (p. 447) Which one of the following is the most readily available source of current price
information for an investment in stocks or bonds?
Chapter 13 – Investing Fundamentals
102. (p. 449) Which one of the following is not a business periodical?
103. (p. 447-450) Which one of the following is false?
104. (p. 44) The fees for investor services and newsletters generally range from ____________ a
year.
Chapter 13 – Investing Fundamentals
105. (p. 449-450) Standard & Poor’s and Value Line are companies that would be examples of:
106. (p. 427) A bankruptcy will remain on your credit report for __________ year(s).
107. (p. 426-427) Which one of the following is not a recommended step individuals can use to
weather a future financial crisis?
Chapter 13 – Investing Fundamentals
108. (p. 425-426) Which one of the following is not a warning sign that you might be getting into
credit card trouble?
109. (p. 435) Which type of risk affects only a specific company or a specific industry?
110. (p. 435) Which one of these is not an example of systematic risk?
Chapter 13 – Investing Fundamentals
111. (p. 424-427-433) After graduating from a community college, you obtain a job as a medical
records technician. Your monthly take-home salary is $2,000. Your monthly expenses are
$1,600. Based on this information, what steps should you take to establish a long-term
investment program?
112. (p. 440-443) Choose four of the investment alternatives presented in Chapter 13 and describe
how the factors of safety, risk, income, growth, and liquidity affect that investment
alternative.
Chapter 13 – Investing Fundamentals
113. (p. 437-440) Bob and Mary Martin are both 35 years old. Although they graduated from
college almost 15 years ago, they have never developed a diversified investment program.
What extra money they had was invested in high-tech stocks that did quite well until the last
five years. Then, with the economic downturn, they encountered major losses. How could
asset allocation have reduced the dollar amounts of the Martin’s losses?
114. (p. 447-450) Describe the sources of investment information investors can use to evaluate a
potential investment.
Chapter 13 – Investing Fundamentals
115. (p. 426-427) To manage a financial crisis, many experts recommend that you take action to
make sure your financial affairs are in order. Name and describe five steps you can take to
ensure that your financial affairs are in order.