The net asset value (NAV) of a bond fund:Cannot be determined.Changes as interest rates change.Is determined by the average coupon rates of the bonds in the fund.Will not change as bonds in the fund are bought or sold.
The number of stocks that make up the Dow Jones Industrial Average is:5,000.500.30.10.
The term generally used to describe the market in which prices fully reflect all available information is:The greater fool hypothesis.Random walk hypothesis.The size-effect hypothesis.Efficient markets hypothesis.
A stock certificate:Is always issued to the individual investor.Represents a primary claim on the firm’s assets.Represents ownership in a corporation.Is handwritten.
Determining total return typically utilizes the:Inflation-adjusted annual performance of all mutual-funds.Annual capital gain plus dividend payout of a stock or fund.Math skills learned in college-level calculus courses.Dividend yield on the Dow Jones Industrial Average.
A limit order:Is used to protect a profit if it is a limit order to buy.Is used to execute a sell at a specific price or lower if possible.Is an order to buy or sell at a specific price or better and can be good till canceled.Is an order to be executed at the best price available and is not known until after confirmation is received.
Dividends are taxed:At the investor’s marginal income tax rate.At a maximum rate of 15%.Only when the stock is sold.Dividends are never taxed.
The highest denomination of U.S. currency is:The $20 billThe $100 billThe $1,000 billThe $100,000 bill
