55135679-FP101-FP-101-Week-4-Assignment-Midterm-Exam
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55135679-FP101-FP-101-Week-4-Assignment-Midterm-Exam

Course: US101, COM us101, Spring 2011

School: University of Phoenix

Word Count: 1040

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FP/101 Midterm 1) What term is used to describe people beginning to spend their wealth in their retirement years? A. disposing B. deferring C. distributing D. decumulating 2) Which of the following would be considered a savings alternative? A. a debit card B. checking account C. certificate of deposit D. a NOW account 3) Which of the following is not included in a typical financial plan? A. A...

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Midterm 1) FP/101 What term is used to describe people beginning to spend their wealth in their retirement years? A. disposing B. deferring C. distributing D. decumulating 2) Which of the following would be considered a savings alternative? A. a debit card B. checking account C. certificate of deposit D. a NOW account 3) Which of the following is not included in a typical financial plan? A. A fund for financial emergencies B. A retirement plan C. A plan for protecting your assets with insurance D. A career plan 4) Which of the following is not normally considered an area of personal finance? A. investments B. budgeting C. retirement planning D. choice of a marriage partner 5) For the overall U.S. market, how is inflation measured? A. change in Consumer Price Index B. change in Producer Price Index C. change in GDP D. change in Wholesale Price Index 6) Which step in the financial planning process involves developing goals? A. Step 1 B. Step 2 C. Step 3 D. None of the Above 7) Which of the following is not one of the steps in the personal financial planning process? A. Identifying and evaluating alternative strategies for achieving goals B. Developing short-term and long-term financial goals C. Implementing a plan for achieving goals D. Determining appropriate risk level of participant 8) Preparing personal financial statements is part of which of the five steps of the financial planning process? A. Develop Goals B. Analyze Your Current Financial Position C. Establish and Implement Your Plan D. None of the above 9) Which of the following is an advantage of using a debit card? A. They free customers from carrying cash or checkbooks. B. They help control overspending. C. They cause an immediate electronic withdrawal from a bank account. D. They are not accepted at all retail stores. 10) Which federal agency insures bank deposits? A. FDIC B. Federal Reserve C. SEC D. FSLIC 11) Which of the following would be considered a transaction account? A. mutual fund account B. certificate of deposit C. savings account D. checking account 12) Which of the following would not be used to create a personal balance sheet? A. Slide presentation software B. Spreadsheet software C. Personal financial management software D. Pencil, paper, and calculator 13) Which of the following is included in a typical financial plan? A. A copy of your drivers license B. Photographs of your family C. A copy of your latest checking account reconciliation D. An estate plan, including a will 14) What is a personal cash flow statement? A. A document that uses the same information needed for the personal balance sheet. B. A document that is necessary for calculating one's net worth. C. A document that shows income and expenditures over a period of time. D. A document that shows income and expenditures at one specific point in time. 15) When you have a baby, which of the following should you do? A. Change your career. B. Review the consumer price index because you will need to buy things. C. Consider buying a larger home. D. Review how the change in your life situation affects your financial plan. 16) Who is the person that agrees to take responsibility for repayment of a loan the if primary borrower defaults? A. guarantor B. benefactor C. cosigner D. mentor 17) Which of the following is an advantage credit cards have over other forms of consumer credit? A. Cannot make remote payments B. Easier to return merchandise C. Loss of privacy D. Most expensive way to borrow 18) Which of the following is a disadvantage of credit cards but not of all consumer credit? A. Safety of not carrying cash B. Additional benefits, such as frequent flier miles C. Risk of fraud and identify theft D. Can be used as a method of identification A. Safety of not carrying cash 19) If you are a victim of credit card fraud or theft, your maximum liability for charges made without your authorization is ________, provided you report your loss promptly. A. $25 B. $100 C. $50 D. 0 20) Which of the following can be a reason for a lender to deny credit? A. Negative information in your credit report B. Stable job history (character) C. Consistency, cash, collateral, creativity, compounding D. Multiple properties to use as collateral 21) Which of the following is considered a cash outflow on your Personal Cash Flow Statement? A. Proceeds from the sale of a car B. Grocery spending C. Student loan funds D. Gambling winnings 22) Which of the following is not a type of consumer credit? A. Automobile loans B. Savings accounts C. Credit card accounts D. Student loans 23) What information is needed to steal your identity? A. A credit card number, expiration date, and address B. Your Social Security number, a credit card number, and birth date C. Your Social Security number, name, and address A. A credit card number, expiration date, and address D. A credit card number and Social Security number 24) What is the timeframe for removing negative credit information, with the exception of bankruptcies, from a credit report? A. after 5 years B. after 10 years C. after 7 years D. after 3 years 25) Which of the following is not one of the five C's of credit? A. capacity B. capital C. credibility D. conditions 26) Which of the following is a good reason to create a Personal Cash Flow Statement? A. To calculate your net worth B. To help with your estate plan by previewing your retirement savings C. To decide where to invest your money D. To evaluate the relationship between your income and expenditures 27) How much would you pay for a $50 Series EE savings bond (Patriot bond)? A. $25 B. $100 C. $75 D. $50 28) What are the five C's of credit? A. Credibility, character, consistency, capital, confidence B. Consistency, cash, collateral, creativity, compounding A. Credibility, character, consistency, capital, confidence C. Capacity, capital, collateral, character, conditions D. Capital, creativity, consistency, confluence, contacts 29) Where on your Personal Cash Flow Statement would you record money received when your rich uncle dies? A. As an asset on your Personal Balance Sheet B. In the cash inflow column C. It would not be included because it is exempt from taxes D. In the expenditures column 30) Which of the following FICO credit scoring factors is carries the greatest weight? A. recent credit activity B. variety of debt sources C. payment history D. debt

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University of Phoenix - US101, COM - us101
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University of Phoenix - US101, COM - us101
University of Phoenix - US101, COM - us101
Appendix ACOM/155 Version 31Axia College MaterialAppendix ASentence Structure ReviewEach of the following sentences has one grammatical error. The errors are in one of the followingfour categories: subjectverb agreement, run-on sentence, verb form
University of Phoenix - US101, COM - us101
Appendix CCOM/155 Version 31Axia College MaterialAppendix CIdentify Twenty Errors in the Passage BelowReview the passage below, which contains 20 errors. Identify these errors by marking each of theerrors in bold, and make your correction in parent
University of Phoenix - US101, COM - us101
Appendix DCOM/155 Version 31Axia College MaterialAppendix DSentence Correction and Changes in WritingReview the following sentences. Some of them are correct, whereas others contain an error witha commonly confused word.Identify those with errors
University of Phoenix - US101, COM - us101
Appendix ECOM/155 Version 31Axia College MaterialAppendix ESummary, Analysis, Synthesis, and EvaluationReview the four paragraphs below. There is one paragraph matching each of the following types:summary, analysis, synthesis, and evaluation. Once
University of Phoenix - US101, COM - us101
Com/155 Final AssignmentFINAL ASSIGNMENTFIRST PARAGRAHParagraphs can be written effectively if the writer uses sentence variety and rhythm. Paragraphs1 and 4 are the paragraphs I have chosen to read. I felt that paragraph 4 was more effectivebecause
University of Phoenix - US101, COM - us101
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University of Phoenix - US101, COM - us101
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University of Phoenix - US101, COM - us101
Axia College MaterialAppendix CThe Five Cs WorksheetDirections: Identify the following factor descriptions to their corresponding C of credit.The five Cs are listed below:CapacityCapitalCollateralCharacterConditionsConditionYour household cash
University of Phoenix - US101, COM - us101
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University of Phoenix - US101, COM - us101
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University of Phoenix - US101, COM - us101
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University of Phoenix - US101, COM - us101
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University of Phoenix - US101, COM - us101
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University of Phoenix - US101, COM - us101
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Chapter 02 - Asset Classes and Financial InstrumentsChapter 02Asset Classes and Financial InstrumentsMultiple Choice Questions1. Which of the following is not a characteristic of a money market instrument?A. liquidityB. marketabilityC. long maturit
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Houston Baptist - FINA 4320 - 4320
Chapter 03 - How Securities are TradedChapter 03How Securities are TradedMultiple Choice Questions3. Firms raise capital by issuing stockA. in the secondary market.B. in the primary market.C. to unwary investors.D. only on days when the market is
Houston Baptist - FINA 4320 - 4320
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Houston Baptist - FINA 4320 - 4320
Chapter 04 - Mutual Funds and other Investment CompaniesChapter 04Mutual Funds and other Investment CompaniesMultiple Choice Questions1. Which one of the following statements regarding open-end mutual funds is false?A. The funds redeem shares at net
Houston Baptist - FINA 4320 - 4320
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Houston Baptist - FINA 4320 - 4320
Chapter 05 - Learning about Return and Risk from the Historical RecordChapter 05Learning about Return and Risk from the Historical RecordMultiple Choice Questions1. Over the past year you earned a nominal rate of interest of 10 percent on your money.
Houston Baptist - FINA 4320 - 4320
Chapter 06 - Risk Aversion and Capital Allocation to Risky AssetsChapter 06Risk Aversion and Capital Allocation to Risky AssetsMultiple Choice Questions1. Which of the following statements regarding risk-averse investors is true?A. They only care abo
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Chapter 07 - Optimal Risky PortfoliosChapter 07Optimal Risky PortfoliosMultiple Choice Questions1. Market risk is also referred to asA. systematic risk, diversifiable risk.B. systematic risk, nondiversifiable risk.C. unique risk, nondiversifiable r
Houston Baptist - FINA 4320 - 4320
Chapter 07 - Optimal Risky PortfoliosChapter 07Optimal Risky PortfoliosMultiple Choice Questions1. Market risk is also referred to asA. systematic risk, diversifiable risk.B. systematic risk, nondiversifiable risk.C. unique risk, nondiversifiable r
Houston Baptist - FINA 4320 - 4320
Chapter 08 - Index ModelsChapter 08Index ModelsMultiple Choice Questions1. As diversification increases, the total variance of a portfolio approaches _.A. 0B. 1C. the variance of the market portfolioD. infinityE. none of the aboveAs more and mor
Houston Baptist - FINA 4320 - 4320
Chapter 09 - The Capital Asset Pricing ModelChapter 09The Capital Asset Pricing ModelMultiple Choice Questions1. In the context of the Capital Asset Pricing Model (CAPM) the relevant measure of risk isA. unique risk.B. beta.C. standard deviation of
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Chapter 11 - The Efficient Market HypothesisChapter 11The Efficient Market HypothesisMultiple Choice Questions1. If you believe in the _ form of the EMH, you believe that stock prices reflect allrelevant information including historical stock prices
Houston Baptist - FINA 4320 - 4320
Chapter 12 - Behavioral Finance and Technical AnalysisChapter 12Behavioral Finance and Technical AnalysisMultiple Choice Questions1. Conventional theories presume that investors _ and behavioral financepresumes that they _.A. are irrational; are irr
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Chapter 14 - Bond Prices and YieldsChapter 14Bond Prices and YieldsMultiple Choice Questions1. The current yield on a bond is equal to _.A. annual interest divided by the current market priceB. the yield to maturityC. annual interest divided by the
Houston Baptist - FINA 4320 - 4320
Chapter 17 - Macroeconomic and Industry AnalysisChapter 17Macroeconomic and Industry AnalysisMultiple Choice Questions1. A top down analysis of a firm starts with _.A. the relative value of the firmB. the absolute value of the firmC. the domestic e
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Chapter 18 - Equity Valuation ModelsChapter 18Equity Valuation ModelsMultiple Choice Questions1. _ is equal to the total market value of the firm's common stock divided by (thereplacement cost of the firm's assets less liabilities).A. Book value per
Houston Baptist - FINA 4320 - 4320
Chapter 20 - Options Markets: IntroductionChapter 20Options Markets: IntroductionMultiple Choice Questions1. The price that the buyer of a call option pays to acquire the option is called theA. strike priceB. exercise priceC. execution priceD. acq
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Chapter 21 - Option ValuationChapter 21 Option ValuationMultiple Choice Questions 1. Before expiration, the time value of an in the money call option is always A. equal to zero. B. positive. C. negative. D. equal to the stock price minus the exercise pr
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Chapter 22 - Futures MarketsChapter 22Futures MarketsMultiple Choice Questions1. A futures contractA. is an agreement to buy or sell a specified amount of an asset at the spot price on theexpiration date of the contract.B. is an agreement to buy or
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Chapter 23 - Futures, Swaps, and Risk ManagementChapter 23Futures, Swaps, and Risk ManagementMultiple Choice Questions1. Which one of the following stock index futures has a multiplier of $250 times the indexvalue?A. Russell 2000B. S&P 500 IndexC.
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CHAPTER 2MARKETS AND FINANCIAL INSTRUMENTS2.1 THE MONEY MARKETThe money market is a sub-sector of the fixed-income market. It consists of veryshort-term debt securities that usually are highly marketable. Many of thesesecurities trade in large denomi
Houston Baptist - FINA 4320 - 4320
CHAPTER 3HOW SECURITIES ARE TRADED3.1 HOW FIRMS ISSUE SECURITIES1. Investment Banking and UnderwritingWhen firms need to raise capital they may choose to sell or float new securities.These new issues of stocks, bonds, or other securities typically ar
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Investments, by Bodie, Kane, and Marcus, 8th EditionSpreadsheet TemplatesMAIN MENU - Chapter 3SOLUTIONSProblem 9 - Buying on MarginProblem 11 - Buying on MarginProblem 10 - Short SalesProblem 12 - Short SalesCopyright 2009 McGraw-Hill/Irwindition
Houston Baptist - FINA 4320 - 4320
CHAPTER 4MUTUAL FUNDS AND OTHER INVESTMENTCOMPANIES4.1 INVESTMENT COMPANIESInvestment companies are financial intermediaries that collect funds fromindividual investors and invest those funds in a potentially wide range ofsecurities or other assets.
Houston Baptist - FINA 4320 - 4320
CHAPTER 5RISK AND RATE OF RETURN5.1 INFLATION AND REAL RATES OF RETURN1. Real vs. Nominal Rates of InterestThe distinction between the real and the nominal rate of return is crucial inmaking investment choices when investors are interested in the fut
Houston Baptist - FINA 4320 - 4320
CHAPTER 6RISK AVERSION AND CAPITAL ALLOCATION TO RISKYASSETS6.1 RISK AND RISK AVERSIONNow, we must ask how much of an expected reward is offered to compensate forthe risk involved in investing money in stocks. We measure the reward` as thedifference
Houston Baptist - FINA 4320 - 4320
CHAPTER 7OPTIMAL RISKY PORTOFLIOS7.1 DIVERSIFICATION AND PORTFOLIO RISKSuppose you have in your risky portfolio only one stock, say Dell ComputerCorporation. What are the sources of risk affecting this portfolio?We can identify two broad sources of u
Houston Baptist - FINA 4320 - 4320
BUS 415: Investment and Portfolio ManagementSolutions for Additional ProblemsChapter 813. d.14.c. The P/E ratio is public information so this observation would provide evidenceagainst the semistrong form of the efficient market theory.15.Assumptio
Houston Baptist - FINA 4320 - 4320
CHAPTER 8INDEX MODELS8.1 A SINGLE-FACTOR SECURITY MARKET1. The Input List of the Markowitz ModelThe success of a portfolio selection rule depends on the quality of the input list,that is, the estimates of expected security returns and the covariance
Houston Baptist - FINA 4320 - 4320
CHAPTER 9THE CAPITAL ASSET PRICING MODEL9.1 THE CAPITAL ASSET PRICING MODEL1. The CAPM and its AssumptionsThe capital asset pricing model (CAPM) is a set of predictions concerningequilibrium expected returns on risky assets. Harry Markowitz laid down
Houston Baptist - FINA 4320 - 4320
Chapter 09 - The Capital Asset Pricing ModelCHAPTER 9: THE CAPITAL ASSET PRICING MODELPROBLEM SETS1.E(rP) = rf + P [E(rM ) rf ]18 = 6 + P(14 6) P = 12/8 = 1.52.If the securitys correlation coefficient with the market portfolio doubles (with all oth
Houston Baptist - FINA 4320 - 4320
CHAPTER 10ARBITRAGE PRICING THEORY AND MULTIFACTOR MODLES OFRISK AND RETURN10.1 MULTIFACTOR MODELS: AN OVERVIEW1. Multifactor Models of Security ReturnsThe index model introduced earlier in this handout give us a way of decomposingstock variability
Houston Baptist - FINA 4320 - 4320
CHAPTER 11THE EFFICIENT MARKET HYPOTHESIS11.1 RANDOMHYPOTHESISWALKSANDTHEEFFICIENTMARKETMaurice Kendall (1953) examined recurrent patterns of peaks and troughsin economic performance of firms and found to his great surprise that hecould identif
Houston Baptist - FINA 4320 - 4320
Chapter 11 - The Efficient Market HypothesisCHAPTER 11: THE EFFICIENT MARKET HYPOTHESISPROBLEM SETS5.Over the long haul, there is an expected upward drift in stock prices based on their fairexpected rates of return. The fair expected return over any
Houston Baptist - FINA 4320 - 4320
CHAPTER 12BEHAVIORAL FINANCE AND TECHNICAL ANALYSIS12.1 THE BEHAVIORAL CRITIQUEA relatively new school of thought dubbed behavioral finance argues that thesprawling literature on trading strategies has missed a larger and moreimportant point by overl
Houston Baptist - FINA 4320 - 4320
CHAPTER 17MACROECONOMIC AND INDUSTRY ANALYSIS17.1 THE GLOBAL ECONOMYFor some firms, macroeconomic and industry circumstances might have agreater influence on profits than the firms relative performance within theindustry. In other words, investors ne
Houston Baptist - FINA 4320 - 4320
CHAPTER 18EQUITY VALUATION MODELSThis chapter describes the ways stock market analysts try to uncovermispriced securities. The models presented are those used by fundamentalanalysts, those analysts who use information concerning the current andprospe