1. A stock portfolio containing 80% common stocks is most likely to be appropriate for:
2. A single most important reason for investing is for:
3. Only the strongest, most stable and safe-return.
4. Companies whose earning have increased at an above-average level over the recent past are called.
a. Growth Companies
5. Stocks whose price movements who tend to follow the business cycle are called:
a. Cyclical Stocks
6. Stocks are really purchased as a gamble rather than as an investment.
7. Characteristic of defensive stocks
a. Price stability in economic decline
8. Actually runs the portfolio and makes the buy and sell decisions
a. Money manager
9. A no-load fund has no:
a. Sales charges
10. An annual fee charged by some mutual funds to cover marketing and distribution expensed is the:
a. 12(b)-1 fee
11. Both load and no-load funds will always charge a:
a. Management fee
12. The major advantage of mutual funds to the small investor is
13. The need for retirement planning is increased by the uncertainties of:
a. Inflation, s. s. , assets you hold, you pension benefits.
14. The major financial benefit of beginning you retirement funding early is:
a. Compound interest
15. The major mistakes people make in retirement planning is
a. People start too late
16. $3000 annual contribution to a retirement account earning 6% will be worth___________ in 20 years.
a.i. Go to table B
17. Gordon and Lisa estimate that they will need $1,875,000 in 40 yrs. For their retirement years. If they can earn 8% annually on their funds, how much do they need to save annually?
a.i. Go to table B
a.ii. Take 1,875,000/259.05
18. Lillian has a defined benefit plan that promised an annual retirement benefit based on the avg. of her last three years of salary times 2% times years of service. At retirement Lillian has 15 yrs. of service and an