The astute investor is aware that:Investment risk is limited to the fortunes of the specific security purchased.Computers make investment decisions scientific and eliminate much of the risk.Actual outcome of any investment may differ from the expected outcome.When trading on-line, brokerage commissions are always negotiable.
Technical analysis is a technique based on factors that are inherent to the market and include:Number of shares sold on a specific day.Number of consecutive days of price increases of a stock.Changes in the direction of movement of a market index.All of the above
The number of stocks that make up the Dow Jones Industrial Average is:5,000.500.30.10.
Variable life insurance:Offers tax deferral.May provide higher return potential and greater risk than a whole life policy.Allows you to invest a portion of the premium in various subaccounts.All of the above.
A prudent investor:Does not have to consider the tax effect of long-term gains.Evaluates his/her investments on an after-tax basis.Studiously avoids income-shifting among funds.Knows that a drop in the dividend payout signals a stronger firm.
The financial pyramid implies that:An investment near the top of the pyramid has a higher potential return, but also carries higher risk.Egyptian pharoahs were astute investors.Eating nutritious meals from the "food pyramid" will make you a better investor."Pyramid" or "Ponzi" schemes are good investments.
The total stock market (S&P 500) return during the 1990s was:Predicted by most Wall Street analysts at the beginning of the decade.Lower than the historical averageThe highest of any decade in the 20th century.Approximately the same as the total return during the 1970s.
Since the mid-1920s inflation in the United States has averaged:About 3 percent.About 7 percent.About 10 percent.About 12 percent