The P/E ratio:Is the same for all firms in a given industry.Does not change over time.Is typically higher for firms whose earnings are expected to grow rapidly.Is the same as the dividend yield.
Gold may be a good investment if:Inflation is expected to increase.You like the color.World peace comes to pass.Foreign governments sell their gold reserves.
Buying on margin::Precludes the advantage of using leverage.Is not affected by limits on borrowing established by ERISA.Minimizes losses if the price of a security declines.Is possible by borrowing from a broker.
A zero coupon bond:Is sold at a discount to face value.Is worthless.Matures immediately.Always has a call feature.
The number of stocks that make up the Dow Jones Industrial Average is:5,000.500.30.10.
Of the following, the safest type of investment is:Under the mattress.An FDIC-insured CD.An international growth mutual fund.An Internet stock.
Determining total return typically utilizes the:Inflation-adjusted annual performance of all mutual-funds.Annual capital gain plus dividend payout of a stock or fund.Math skills learned in college-level calculus courses.Dividend yield on the Dow Jones Industrial Average.
Investments in CDs:Are riskier than investments in stocks.Are inferior to investments in 8-tracks and vinyl records.Are always tax deferred.Are insured by the FDIC, but have generally underperformed stock investments over the long run.
