Investments Analysis and Management 14th Edition Jones Test Bank
Test Bank for Investments Analysis and Management 14th Edition Charles P. Jones, Gerald R. Jensen, ISBN: 1119578124, ISBN: 9781119578123
TABLE OF CONTENTS
Part 1 Background
1 Understanding Investments 1
2 Investment Alternatives 24
3 Indirect Investing 57
4 Securities Markets and Market Indexes 90
5 How Securities are Traded 114
Part 2 Portfolio and Capital Market Theory
6 The Risk and Return from Investing 139
7 Portfolio Theory 171
8 Portfolio Selection and Asset Allocation 197
9 Capital Market Theory and Asset Pricing Models 224
Part 3 Common Stocks: Analysis, Valuation, and Management
10 Common Stock Valuation 256
11 Common Stocks: Analysis and Strategy 293
12 Market Efficiency 315
Part 4 Security Analysis
13 Economy/Market Analysis 347
14 Sector/Industry Analysis 370
15 Company Analysis 389
16 Technical Analysis 421
Part 5 Fixed-Income Securities: Analysis, Valuation, and Management
17 Bond Yields and Prices 443
18 Bonds: Analysis and Strategy 470
Part 6 Derivative Securities
19 Options 498
20 Futures Contracts 532
Part 7 Investment Management
21 Managing Your Financial Assets 557
22 Evaluation of Investment Performance 579
Chapter 1: Understanding Investments
Multiple Choice
1. Which of the following is the best definition of wealth?
a. The sum of all current and future income
b. The total of all assets and all income
c. The total of assets and income less any liabilities
d. The sum of current income and the present value of future income
Ans: d
Difficulty: Moderate
Ref: Establishing a Framework for Investors
2. Gold coins would be classified as:
a. real assets.
b. indirect assets.
c. personal assets.
d. financial assets.
Ans: a
Difficulty: Easy
Ref: Establishing a Framework for Investors
3. Technically, investments include:
a. only financial assets.
b. only marketable assets.
c. financial and real assets that are marketable or non-marketable.
d. only financial and real assets that are marketable.
Ans: c
Difficulty: Easy
Ref: Establishing a Framework for Investors
4. Retirement plans that guarantee a set amount of money each month are known as:
a. 401(k) plans.
b. self-directed plans.
c. defined-benefit plans.
d. defined-contribution plans.
Ans: c
Difficulty: Moderate
Ref: Establishing a Framework for Investors
5. The investment professionals that arrange the sale of new securities are called:
a. arbitragers.
b. traders.
c. investment bankers.
d. specialists.
Ans: c
Difficulty: Moderate
Ref: The Importance of Studying Investments
