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A bond may be issued by ________.

Companies, State Governments and the federal government

____ means that the percentage increase in the dividend is the same year

Constant growth

______ has to do with the speed and accuracy of processing a buy or sell order at the best available price.

Operational efficiency

Which of the following statements about probabilities is incorrect.

Probability is associated with an ex-post view

_______ is risk that cannot be diversified away

Systematic risk

Which of the following investments is considered to be default risk-free.

Treasury bills

________ is the absence of knowledge of the outcome of an event before it happens.

Uncertainty

Stocks differ from bonds because:

all of these

Bonds are different from stocks because

bonds promise fixed payments for the length of their maturity,

Which of the following types of bonds may the issuer buy back before maturity?

callable bond

________ means that the percentage increase in the dividend is the same each year.

constant growth

The _____ is the regular interest payment of the bond.

coupon

The___ us the interest rate printed on the bond

coupon rate

The______ is a market derived interest rate used to discount the future cash flows of the bond,

coupon rate

When the________ is less than the yield to maturity the bond sells at the_______ par value.

coupon rate; discount to

The terms____ and_____ mean the same thing.

diversifiable risk; unsystematic risk

The practice of not putting all of your eggs in one basket is an illustration of______.

diversification

The holder of preferred stock is entitled to a constant dividend

every period

As general interest rates rise, bond prices

fall

________ refers to how quickly information is reflected in the available prices for trading.

informational efficiency

A bond is a______ instrument by which a borrower of funds agrees to pay back the funds with interest on specific dates in the future.

long- term debt

A beta of 1.0 is the beta of the ______, while a beta of 0.0 is the measure for a______

market; risk-free security

The __ is the expiration date of the bond

maturity date

Treasury ________ and ________ are semiannual bonds, while Treasury ________ are zero-coupon instruments.

notes; bonds; bills

zero coupon bonds are

priced at a deep discount

the_______is the market of first sale in which companies first sell their authorized share to the public

primary market

You can think of the ________ as the "used stock" market because these shares have been owned or "used" previously.

secondary market

In_________, current prices already reflect the price history and volume of the stock as well as all available public information

semi-strong-form efficient markets

Most U.S. corporate and government bonds choose to make ________ coupon payments.

semiannual `

"Junk" bonds are a street name for ____ grade bonds.

speculative

"Junk" bonds are a street name for ________ grade bonds.

speculative

A more risky stock has a higher_____

standard deviation and variance

Stocks are different from bonds because _______.

stocks, unlike bonds, represent residual ownership

The difference between the price and the par value of a zero-coupon bond represents ________.

the accumulated interest over the life of the bond

A security with a beta of 1.5 indicates which of the following

the security carries more risk than the market

In __, current prices reflect the price history and trading volume of the stock. It is of no use to chart historical stock prices to predict future stock prices such that you can identify misplaced stocks and routinely outperform the market.

weak-form efficient market

The ________ is a market derived interest rate used to discount the future cash flows of the bond.

yield to maturity

The ________ is the yield an individual would receive if the individual purchased the bond today and held the bond to the end of its life.

yield to maturity

trials inc has issued a 30-year $1000 face value, 10% annual coupon bonds, with a yield to maturity of 9%. The annual interest payment for the bond is_______

$100

Which of the following provides the best description of common stock>

A claim on residual earnings after all other claim holders have been paid

Which of the following is NOT a definition of beta.

A measure risk that can be avoided

The measure of systematic risk is called_____

Beta