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Assume our typical 65-year-old investor likewise has adequate insurance coverage and a cash reserve. Let's also assume she is retiring this year. This individual will want less risk xposure than the 25-year-old investor, because her earning power from employment will soon be nding; she will not be able to recover any investment losses by saving more out of her paycheck. Depending on her income from social security and a pension plan, she may need some current income from her retirement portfolio to meet living expenses. Given that she can be expected to live an average of another 20 years, she will need protection against inflation. A risk-averse investor will choose:

A.
A combination of current income and capital depreciation in an attempt to have principal growth outpace inflation
A.
A combination of current income and capital depreciation in an attempt to have principal growth outpace inflation
Answers
B.
A combination of current income and capital preservation strategy
B.
A combination of current income and capital preservation strategy
Answers
C.
A combination of current income and capital appreciation in an attempt to have principal growth outpace inflation
C.
A combination of current income and capital appreciation in an attempt to have principal growth outpace inflation
Answers
D.
A combination of current income and total return in an attempt to have principal growth outpace inflation
D.
A combination of current income and total return in an attempt to have principal growth outpace inflation
Answers
Suggested answer: B

Assume our typical 65-year-old investor likewise has adequate insurance coverage and a cash reserve. Let's also assume she is retiring this year. This individual will want less risk xposure than the 25-year-old investor, because her earning power from employment will soon be ending; she will not be able to recover any investment losses by saving more out of her paycheck. Depending on her income from social security and a pension plan, she may need some current income from her retirement portfolio to meet living expenses. Given that she can be expected to live an average of another 20 years, she will need protection against inflation. A risk-averse investor will choose a combination of current income and capital preservation strategy; a more risk-tolerant investor will choose:

A.
A combination of current income and capital depreciation in an attempt to have principal growth outpace inflation
A.
A combination of current income and capital depreciation in an attempt to have principal growth outpace inflation
Answers
B.
A combination of current income and capital preservation strategy
B.
A combination of current income and capital preservation strategy
Answers
C.
A combination of current income and capital appreciation in an attempt to have principal growth outpace inflation
C.
A combination of current income and capital appreciation in an attempt to have principal growth outpace inflation
Answers
D.
A combination of current income and total return in an attempt to have principal growth outpace inflation
D.
A combination of current income and total return in an attempt to have principal growth outpace inflation
Answers
Suggested answer: D

Which of the following is not the correct technical indicator?

A.
Moving Average Convergence/Divergence
A.
Moving Average Convergence/Divergence
Answers
B.
Relative strength index
B.
Relative strength index
Answers
C.
On balance volume
C.
On balance volume
Answers
D.
Broadening formation
D.
Broadening formation
Answers
Suggested answer: D

Buying power of an investor is calculated as:

A.
Assets-liabilities
A.
Assets-liabilities
Answers
B.
Equity-debt balances
B.
Equity-debt balances
Answers
C.
Short term debt-long term debt
C.
Short term debt-long term debt
Answers
D.
Current assets-current liabilities
D.
Current assets-current liabilities
Answers
Suggested answer: B

Which of the following is a pattern that occurs during high volatility, when a security shows great movement with little direction?

A.
Broadening formation
A.
Broadening formation
Answers
B.
Relative strength index
B.
Relative strength index
Answers
C.
On balance volume
C.
On balance volume
Answers
D.
Bollinger bands
D.
Bollinger bands
Answers
Suggested answer: A

Companies that have capitalization amounts more than $2 billion are known as:

A.
Small cap companies
A.
Small cap companies
Answers
B.
Mid cap companies
B.
Mid cap companies
Answers
C.
Growth companies
C.
Growth companies
Answers
D.
Large cap companies
D.
Large cap companies
Answers
Suggested answer: D

All of the following are sentiment indicators Except:

A.
Quick asset ratio
A.
Quick asset ratio
Answers
B.
Odd lot short ratio
B.
Odd lot short ratio
Answers
C.
Shares sold short
C.
Shares sold short
Answers
D.
Short interest ratio
D.
Short interest ratio
Answers
Suggested answer: A

Which of the following analysts think that supply and demand play an important role?

A.
Ratio analysts
A.
Ratio analysts
Answers
B.
Fundamental analysts
B.
Fundamental analysts
Answers
C.
Technical analysts
C.
Technical analysts
Answers
D.
Research Analysts
D.
Research Analysts
Answers
Suggested answer: C

All of the following are properties of stop order Except:

A.
Protecting profits
A.
Protecting profits
Answers
B.
Minimizing losses
B.
Minimizing losses
Answers
C.
Rapid execution
C.
Rapid execution
Answers
D.
Continuous inflation
D.
Continuous inflation
Answers
Suggested answer: C

Which of the following promotes education and ethical behavior among those involved in

investment business?

A.
Securities investor protection corporation
A.
Securities investor protection corporation
Answers
B.
Licensed international financial analyst
B.
Licensed international financial analyst
Answers
C.
Chartered financial analyst institute
C.
Chartered financial analyst institute
Answers
D.
Securities and exchange commission
D.
Securities and exchange commission
Answers
Suggested answer: B
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