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Question 1 of 10
1. Question
A stock is trading at the following prices: 80, 80.25, 79.75, 80, 80.15,
80.25, 80.50, 80.25, 80, 79.75. What is the resistance level?Correct
The bracket the stock trades in has a support (lowest trading price), and resistance level (highest trading price).
Incorrect
The bracket the stock trades in has a support (lowest trading price), and resistance level (highest trading price).
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Question 2 of 10
2. Question
Which of the following is the correct formula form of CAPT principal?
Correct
In formula form, the CAPT principal looks like this: r = rf + B
r = return of stock
rf = risk-free rate of T-Bills
B = Beta value of stockIncorrect
In formula form, the CAPT principal looks like this: r = rf + B
r = return of stock
rf = risk-free rate of T-Bills
B = Beta value of stock -
Question 3 of 10
3. Question
Which of the following(s) is (are) investment objectives?
I. Capital growth
II. Current income
III. Diversification
IV. LiquidityCorrect
Different types of investment objectives are:
•Capital growth
•Current income
•Diversification
•LiquidityIncorrect
Different types of investment objectives are:
•Capital growth
•Current income
•Diversification
•Liquidity -
Question 4 of 10
4. Question
Which type of investment(s) is (are) low-risk investments (like bonds) where
capital is preserved?
I. Current income
II. Diversification
III. Preservation of capital
IV. Short-termCorrect
Preservation of capital: low-risk investments (like bonds) where capital is preserved.
Incorrect
Preservation of capital: low-risk investments (like bonds) where capital is preserved.
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Question 5 of 10
5. Question
To recommend investments to a customer, how you’ll calculate your client’s net worth?
Correct
Know how to calculate your client’s net worth: Net worth = current assets – liabilities
Incorrect
Know how to calculate your client’s net worth: Net worth = current assets – liabilities
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Question 6 of 10
6. Question
Which of the following statement(s) is (are) true about Strategic asset allocation?
I. Strategic asset allocation bases investment choices on the portfolio holder’s long-term goals.
II. A simple way to make up a strategic allocation is to subtract your customer’s age from 100. This is the percentage you should invest in stocks.
III. When making strategic asset allocation, you are adjusting a portfolio to market conditions.
IV. This is a quick way to spread your customer’s assets within their portfolio to minimize risk but still have the best chance of returns that outpace inflation.Correct
Strategic asset allocation bases investment choices on the portfolio holder’s long-term goals. A simple way to make up a strategic allocation is to subtract your customer’s age from 100. That number should be the percentage invested in stock; the rest should be invested in bonds and cash instruments.
This is a quick way to spread your customer’s assets within their portfolio to minimize risk but still have the best chance of returns that outpace inflation.Incorrect
Strategic asset allocation bases investment choices on the portfolio holder’s long-term goals. A simple way to make up a strategic allocation is to subtract your customer’s age from 100. That number should be the percentage invested in stock; the rest should be invested in bonds and cash instruments.
This is a quick way to spread your customer’s assets within their portfolio to minimize risk but still have the best chance of returns that outpace inflation. -
Question 7 of 10
7. Question
Which of the following statement(s) is (are) true about tactical asset allocations?
I. When making tactical asset allocations, you are adjusting a portfolio to market conditions.
II. Tactical asset allocation anticipates market movement by studying the market, with hopes of benefiting from fluctuations.
III. Tactical asset allocations include investing in volatile stock, put or call options, or buying securities on margin.
IV. Tactical asset allocations is focused on maintaining principal while getting interest on that principal.Correct
When making tactical asset allocations, you are adjusting a portfolio to mar- ket conditions. For instance, if you expect the stock market to fall, you would put more assets in bonds or cash. Tactical asset allocation anticipates market movement by studying the market, with hopes of benefiting from fluctuations.
Incorrect
When making tactical asset allocations, you are adjusting a portfolio to mar- ket conditions. For instance, if you expect the stock market to fall, you would put more assets in bonds or cash. Tactical asset allocation anticipates market movement by studying the market, with hopes of benefiting from fluctuations.
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Question 8 of 10
8. Question
Which of the following statement(s) is (are) true about Aggressive investment and Aggressive investors?
I. Aggressive investment strategies include investing in volatile stock, put or call options, or buying securities on margin.
II. Aggressive investors tend to be more tactical in their portfolio allocation, hoping to gain from market movement wherever possible.
III. Aggressive investment strategy is focused on maintaining principal while getting interest on that principal.
IV. Aggressive investors prefer low-risk investments.Correct
Aggressive investment strategies include investing in volatile stock, put or call options, or buying securities on margin. Aggressive investors tend to be more tactical in their portfolio allocation, hoping to gain from market movement wherever possible.
Incorrect
Aggressive investment strategies include investing in volatile stock, put or call options, or buying securities on margin. Aggressive investors tend to be more tactical in their portfolio allocation, hoping to gain from market movement wherever possible.
-
Question 9 of 10
9. Question
Which of the following statement(s) is (are) true about Defensive investment strategy and Defensive investors?
I. Defensive investment strategy is focused on maintaining principal while getting interest on that principal.
II. Defensive investors prefer low-risk investments, like stock of established, high-rated companies, AAA-rated or government bonds, and cash investments like money market funds.
III. A purely defensive strategy incurs high inflation risk.
IV. Defensive investors tend to be more tactical in their portfolio allocation.Correct
Defensive investment strategy is focused on maintaining principal while getting interest on that principal. Defensive investors prefer low-risk investments, like stock of established, high-rated companies, AAA-rated or government bonds, and cash investments like money market funds.
A purely defensive strategy incurs high inflation risk.Incorrect
Defensive investment strategy is focused on maintaining principal while getting interest on that principal. Defensive investors prefer low-risk investments, like stock of established, high-rated companies, AAA-rated or government bonds, and cash investments like money market funds.
A purely defensive strategy incurs high inflation risk. -
Question 10 of 10
10. Question
Which of the following is (are) not investment risk?
I. Liquidity
II. Legislative
III. Reinvestment
IV. SovereignCorrect
Different types of investment risks are:
Legislative
Reinvestment
SovereignIncorrect
Different types of investment risks are:
Legislative
Reinvestment
Sovereign