Question 1 (2 points)

Focus

Returns from the overall market (or an individual stock) can be thought of as a combination of three factors: earnings growth, multiple expansion (or contraction), and dividend yield.

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Question 2 (2 points)

Future tax rates are difficult to estimate because they are politically influenced.

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Question 3 (2 points)

If the intrinsic value of an asset is greater than the market price, you would want to buy the investment.

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Question 4 (2 points)

According to Peter Lynch, a favorable attribute of a firm that may result in favorable stock performance is when a firm’s product is the latest craze.

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Question 5 (2 points)

Interest rate spread, 10-year Treasury bonds less federal funds, is listed as a lagging indicator in the Conference Board.

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Question 6 (2 points)

Which of the following is a market tenet of Warren Buffett? Select one.

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Question 7 (2 points)

The two questions when assessing the performance measurement of an investment manager include which of the following? Select one.

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Question 8 (2 points)

Issues that provide funds to retire another issue early are known as what? Select one.

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Question 9 (2 points)

When a bond issue is secured by a legal claim on equipment it is known as which of the following? Select one.

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Question 10 (2 points)

Which bond provision would be considered the riskiest for an investor who is concerned that market interest rates will drop dramatically over the life of the bond? Select one.

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