1. Stock Market Review

2. The highest Morningstar rating is*
****
*****


3. 72 months 8 years 9 years 12 years
If an investor can earn 9 percent on an investment, approximately how long will it take to double in value?
72 months
8 years
9 years
12 years

4. Which statement is true about mutual funds?
You can choose which securities to include in your mutual funds
Mutual funds offer guaranteed returns
Mutual funds are convenient and professionally managed
All mutual funds buy stocks

5. A 35-yr-old investing for retirement
Generally, a portfolio that has 80% of its assets in stocks would be best suited for:
A 18-yr-old using the assets to pay for college expenses over the next 4 years.
A 35-yr-old investing for retirement
A 75-yr-old investing for income and capital preservation
None of the above

6. A zero-coupon bond pays interest
Periodically
At the maturity date
At the time of purchase
Never

7. A mutual fund ticker symbol ends with the letterG X Z

8. A stock considered a large cap has market capitalization
Less than $2 Billion
Between $2 Billion and $10 Billion
Between $10 Billion and $100 Billion
Greater than $100 Billion

9. Index that measures smallest businesses listed
Your Subtopics Go Here
Dow Jones Industrial Average
S&P 500
Russell 2000
Wilshire 5000

10. By definition, what type of bond is purchased at face value?
Corporate bond
Treasury bond
Non-coupon bond
Coupon bond

11. The ‘total stock market’ index is
Your Subtopics Go Here
Dow Jones Industrial Average
S&P 500
Russell 2000
Wilshire 5000

12. What investment term is shown here?

13. This retirement investment is diversified
401(k)
Roth IRA
Both
Neither

14. Market capitalization
The number of shares outstanding multiplied by its ‘last’ traded price equals a stock’s
Your Subtopics Go Here
Volume
Sector
Market capitalization
P/E ratio

15. An IOU certifying that you loaned money to a level of government or a corporation is a
Your Subtopics Go Here
Mutual Fund
ETF
Bond
Stock

16. Of the following which ticker symbols, which one is a mutual fund?
AAPL
SBUX
FCLFX
DJI

17. Index that measures 30 blue-chip stocks
Your Subtopics Go Here
Dow Jones Industrial Average
S&P 500
Russell 2000
Wilshire 5000

18. 401(k) Roth IRA Both Neither
This retirement investment allows earnings to be withdrawn without penalty
401(k)
Roth IRA
Both
Neither

19. The basic rule of a risk-to-return relationship is that the
Your Subtopics Go Here
Lower the risk, the higher the return rate
Higher the risk, the lower the return rate
Higher the risk, the higher the return rate
The two are not related

20. The “pay yourself first” philosophy
The time value of money can best be explained using which one of the following concepts?
Your Subtopics Go Here
The “pay yourself first” philosophy
The risk-to-return relationship
Compound interest
The Rule of 72

21. Moody’s rates
Stocks
Bonds
Mutual funds
US Savings bonds

22. Money market mutual fund
Which one of the following investments has the highest risk and the highest potential rate of return?
Money market mutual fund
Stocks
Government bonds
Savings bonds

23. What a company pays you per share for owning stock is called
Dividend
Industry
Sector
Risk

24. A bond’s interest rate is called its
Principal
Coupon rate
Face value
Par value

25. Which type of stock is the most likely to pay a dividend?
Income stock
Small cap stock
Common stock
Growth stock

26. A savings account is more liquid than (a)
Mutual fund
Retirement plan
House
All of the above

27. A stock considered a mid cap has market capitalization
Less than $2 Billion
Between $2 Billion and $10 Billion
Between $10 Billion and $100 Billion
Greater than $100 Billion

28. Potential for Earnings on investment
Rank in order of highest potential reward (1) to
lowest potential reward (8)
Potential for Earnings on investment
Investment Option
Preferred Stock
CDs
U.S. Savings Bonds
Commodities
Growth Stock
Insured Savings Account
Money Market Account
Balance Mutual Funds

29. Financial Planning Pyramid
NEFE High School Financial Planning Program
Unit Three – Investing: Making Money Work for You
Penny
Stock
Commo- dities
Collectibles
Speculative
Stock / Bonds /
Mutual Funds
Real
Estate
Blue-Chip
Common
Growth
Mutual
Funds
High-Grade
Convertible
Bonds
Preferred
Balanced
Corporate Bonds
or Mutual Funds
Municipal Bonds
Money Market
Accounts
Certificates
of Deposit
U.S. Savings
Insured Savings /
Checking Accounts
Treasury
Issues
Financial Planning Pyramid
Highest Risk
Highest Earnings
Lower Risk
Lower Earnings
3-J

30. Dollar-cost averaging is an incremental way to invest?

31. Investors with a pessimistic attitude are nicknamed “bulls”.

32. The NYSE lists mainly technology stocks.

33. $10,000 $20,000 $100,000 $200,000 Stock Market Simulation
How much money do you start with?
$10,000
$20,000
$100,000
$200,000

34. SMS How much is the commission you have to pay for each transaction?
$10
10%
15%
$25

35. SMS
Can you buy on margin?

36. How many transactions are you allowed throughout the simulation?

37. What is found in a stock listing?
Earnings per share
Ask
Volume
investment goal
52-week high
fund manager
ticker
load
market/exchange
bid
52-week low
P/E ratio

38. The highest Moody’s rating is
Aaa A
Baa B

39. What is the interest rate earned on your cash balance?
SMS
What is the interest rate earned on your cash balance? 1% 3% 5% 8%

40. What is an advantage of having a load?
Don’t have as much money to invest
Money is in an safe investment
Fund manager keeps money in case of emergency
Fund manager offers advice

41. Which investments may have a load?
Stocks
Treasury bonds
Mutual funds
Corporate bonds

42. If you have a mutual fund with a load, which is the best to have?
Front-end load
Back-end load
No load
Motherload

43. This retirement investment is tax deferred
401(k)
Roth IRA
Both
Neither

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