Business Chapter 11

Maria has invested $200,000 in mutual funds and $20,000 in bonds. The total value of her portfolio is:

$220,000

James purchased five bonds with a face value of $1,000 that paid a 5% annual interest rate. James's total annual interest income for each year is:

$250.

Dow Jones Industrial Average (DJIA) is based on:

30 stocks.

Matthew purchased 100 shares if Blue Corporation for $100 per share. Currently, the stocks of Blue Corporation are trading at $150. Which of the following is the rate of return on Matthew's investment in one share?

50%

Which of the following is a difference between an exchange-traded fun (ETF) and a mutual fund?

An ETF provides more favorable tax treatment than a mutual fund.

Which of the following types of brokers enables an investor to trade electronically from his or her personal computer?

An online broker

___ is a risky short-term investment activity.

Speculating in securities

The most important reason why people invest is to:

accumulate funds for retirement

A market order is transacted at the:

best price when the order is entered.

A diversified portfolio of securities is characterized by:

dissimilar risk-return characteristics of the financial instruments.