Finance

One important tax rule concerning capital losses is that

One important tax rule concerning capital losses is that

[html]One important tax rule concerning capital losses is that

▸ capital losses are always fully deductible.

▸ a maximum of $3,000 of losses in excess of capital gains can be written off against ordinary income in any one year.

▸ a maximum of $10,

zbuild007   28   1 Reply

hhorton

Emily's marginal tax rate is 28%. She will have $100,000 in taxable income before any stock ...

Emily's marginal tax rate is 28%. She will have $100,000 in taxable income before any stock ...

[html]Emily's marginal tax rate is 28%.  She will have $100,000 in taxable income before any stock transactions.  If she sells stock at long-term losses totaling $2,500 , her losses will reduce her taxes by

▸ $2,500.

▸ $840.

▸ $700.

▸ No reductio

bigben0007   35   1 Reply

relisabeth

Alex bought 100 shares of CBG corporation at $20 per share. It is now selling at $50 and Alex has ...

Alex bought 100 shares of CBG corporation at $20 per share. It is now selling at $50 and Alex has ...

[html]Alex bought 100 shares of CBG corporation at $20 per share.  It is now selling at $50 and Alex has placed a stop loss order at $47.50, good til canceled.  Which of the following is true?

▸ If the price falls to $40, there is a high probability

teyodani   46   1 Reply

ksweet

A stop loss order may not protect an investor's profits if

A stop loss order may not protect an investor's profits if

[html]A stop loss order may not protect an investor's profits if

▸ the price drops even slightly below the stop price before the order can be executed.

▸ the price enters a prolonged period of gradual decline.

▸ an unexpected event cause the price

smithc52   52   1 Reply

david200095367

Late in the calendar year, Jessica must choose between selling stock that was purchased 2 years ago ...

Late in the calendar year, Jessica must choose between selling stock that was purchased 2 years ago ...

[html]Late in the calendar year, Jessica must choose between selling stock that was purchased 2 years ago for $10,000 and has fallen to $7,000 or a different stock that was purchased 1 year ago for $5,000 and has risen to $7,000.  If the investor has

melisooflyy   46   1 Reply

pipi123

Explain the use of limit orders and stop-loss orders in rebalancing an investor's stock portfolio. ...

Explain the use of limit orders and stop-loss orders in rebalancing an investor's stock portfolio. ...

Explain the use of limit orders and stop-loss orders in rebalancing an investor's stock portfolio. What are the principal risks in using these orders?

jarzola   37   1 Reply

Sirangelou

Successful portfolio management with a variable ratio plan depends on the investor's skill in ...

Successful portfolio management with a variable ratio plan depends on the investor's skill in ...

Successful portfolio management with a variable ratio plan depends on the investor's skill in timing the market.

▸ true

▸ false

j22   32   1 Reply

bluepeachez36

Investors who use formula plans believe that they have above average ability to time the market and ...

Investors who use formula plans believe that they have above average ability to time the market and ...

Investors who use formula plans believe that they have above average ability to time the market and pick successful investments.

▸ true

▸ false

drw92   34   1 Reply

Saharak

Formula plans are high-risk investment strategies that attempt to benefit from cyclical price movements.

Formula plans are high-risk investment strategies that attempt to benefit from cyclical price movements.

Formula plans are high-risk investment strategies that attempt to benefit from cyclical price movements.

▸ true

▸ false

szehim2009   31   1 Reply

gronk44

Dollar cost averaging is a formula plan which automatically causes investors to purchase more shares ...

Dollar cost averaging is a formula plan which automatically causes investors to purchase more shares ...

Dollar cost averaging is a formula plan which automatically causes investors to purchase more shares when the price is low and purchase fewer shares when the price is high.

▸ true

▸ false

dove298   45   1 Reply

onid

Dollar cost averaging is a formula plan to purchase the same number of shares of stock at regular ...

Dollar cost averaging is a formula plan to purchase the same number of shares of stock at regular ...

Dollar cost averaging is a formula plan to purchase the same number of shares of stock at regular intervals of time.

▸ true

▸ false

NeuroJuice   43   1 Reply

djbo89

A constant-ratio plan requires an investor to periodically rebalance the portfolio.

A constant-ratio plan requires an investor to periodically rebalance the portfolio.

A constant-ratio plan requires an investor to periodically rebalance the portfolio.

▸ true

▸ false

booboo123   29   1 Reply

nilabmirzada

A constant ratio plan allows for speculative gains while limiting potential losses.

A constant ratio plan allows for speculative gains while limiting potential losses.

A constant ratio plan allows for speculative gains while limiting potential losses.

▸ true

▸ false

gringoboy6   35   1 Reply

munjoj

Which one of the following statements is correct concerning dollar cost averaging plans?

Which one of the following statements is correct concerning dollar cost averaging plans?

[html]Which one of the following statements is correct concerning dollar cost averaging plans?

▸ Dollar cost averaging is an active trading strategy.

▸ Dollar cost averaging is a short-term trading strategy.

▸ The goal of dollar cost averaging is

britt138   55   1 Reply

aupadhay287

Which one of the following statements concerning formula plans is correct?

Which one of the following statements concerning formula plans is correct?

[html]Which one of the following statements concerning formula plans is correct?

▸ The use of subjective judgment is important to the routine administration of most formula plans.

▸ Formula plans are based on the adherence to a mechanical set of ru

kuttin   43   1 Reply

onid

Which of the following is ideally suited to automatic investing through a payroll deduction plan?

Which of the following is ideally suited to automatic investing through a payroll deduction plan?

Which of the following is ideally suited to automatic investing through a payroll deduction plan?

▸ a dollar cost averaging plan

▸ a constant dollar plan

▸ a constant ratio plan

▸ a variable ratio plan

MrBio23   42   1 Reply

john august t

Under the variable-ratio plan, additional speculative investments are made when the ratio

Under the variable-ratio plan, additional speculative investments are made when the ratio

[html]Under the variable-ratio plan, additional speculative investments are made when the ratio

▸ of conservative investments to speculative investments increases by 10%.

▸ of the rate of return on the speculative investments exceeds the overall ma

BrandyBraden   33   1 Reply

isababycookie

The theory behind the variable ratio plan is to

The theory behind the variable ratio plan is to

[html]The theory behind the variable ratio plan is to

▸ passively buy and hold a wide variety of securities.

▸ time the cyclical movements of the stock market and thereby "buy low and sell high."

▸ avoid selling any security for a capital gain, an

choco1433   36   1 Reply

rpascua

The general theory of dollar cost averaging is

The general theory of dollar cost averaging is

[html]The general theory of dollar cost averaging is

▸ to time the market to take advantage of low stock prices.

▸ to buy more stock when prices are low and less when prices are high.

▸ to equal the performance of market averages at the lowest dol

capella234   42   1 Reply

Dratini

The formula plan which requires the greatest management attention and is also the most aggressive is ...

The formula plan which requires the greatest management attention and is also the most aggressive is ...

The formula plan which requires the greatest management attention and is also the most aggressive is called the ________ plan.

▸ dollar cost averaging

▸ constant dollar

▸ constant ratio

▸ variable ratio

hellchicken   29   1 Reply

jgunn88

The formula plan that requires maintaining a target dollar investment in the speculative portion of ...

The formula plan that requires maintaining a target dollar investment in the speculative portion of ...

[html]The formula plan that requires maintaining a target dollar investment in the speculative portion of an investor's portfolio is the

▸ most passive of all the formula plans.

▸ target return plan.

▸ constant ratio plan.

▸ constant dollar plan.

Katie32   39   1 Reply

itsbreck

The constant-ratio plan

The constant-ratio plan

[html]The constant-ratio plan

▸ requires the establishment of trigger points for portfolio rebalancing.

▸ utilizes a predetermined ratio between desired current yield and expected capital gains.

▸ strictly adheres to a buy-and-hold strategy.

▸ is

adnan_buljic   42   1 Reply

iammtz

Investors who who accept the random walk theory should use

Investors who who accept the random walk theory should use

Investors who who accept the random walk theory should use

▸ a dollar cost averaging plan.

▸ a constant dollar plan.

▸ a constant ratio plan.

▸ a variable ratio plan.

citycyborg   34   1 Reply

elbrundo

If a constant-dollar plan portfolio is profitable over the long run, the ________ in value over time.

If a constant-dollar plan portfolio is profitable over the long run, the ________ in value over time.

[html]If a constant-dollar plan portfolio is profitable over the long run, the ________ in value over time.

▸ conservative portion will increase

▸ conservative portion will remain constant

▸ aggressive portion will decrease

▸ entire portfolio wil

schweet   33   1 Reply

aliwchamoun

Dollar cost averaging is likely to work best with a mutual fund

Dollar cost averaging is likely to work best with a mutual fund

[html]Dollar cost averaging is likely to work best with a mutual fund

▸ whose NAV fluctuates widely, but trends upward.

▸ whose NAV remains relatively constant, like a money market fund.

▸ whose NAV fluctuates widely, but trends downward.

▸ whose

mktrujillo   54   1 Reply

munjoj

Dollar cost averaging is a procedure by which an investor

Dollar cost averaging is a procedure by which an investor

[html]Dollar cost averaging is a procedure by which an investor

▸ buys more stock as its price increases.

▸ times investments in order to buy low and sell high.

▸ invests a fixed dollar amount in a security at fixed intervals.

▸ maintains a const

deroth   54   1 Reply

kaitmaw

An investor adopts a variable ratio policy of investing in both a high beta mutual fund and a money ...

An investor adopts a variable ratio policy of investing in both a high beta mutual fund and a money ...

[html]An investor adopts a variable ratio policy of investing in both a high beta mutual fund and a money market fund.  Money will be moved from the money market fund to the high beta fund

▸ when the high beta fund's value has declined.

▸ when the

danby   44   1 Reply

JRAD814

Net asset values at the end of each month for the no-load Currier & Ives fund are shown below. Holly ...

Net asset values at the end of each month for the no-load Currier & Ives fund are shown below. Holly ...

[html]Net asset values at the end of each month for the no-load Currier & Ives fund are shown below.  Holly Tannenbaum invests $500 in the fund each month through an automatic investment plan.  Compute:
a.  the number of shares purchased each mo

dkwilson   76   1 Reply

wardasid

Dollar-cost averaging plans and constant-dollar plans are both formula approaches to portfolio ...

Dollar-cost averaging plans and constant-dollar plans are both formula approaches to portfolio ...

Dollar-cost averaging plans and constant-dollar plans are both formula approaches to portfolio management. Briefly explain the two plans.

tls043   62   1 Reply

jaimielavie

Treynor's measure and Jensen's measure use the standard deviation of portfolio return in the denominator.

Treynor's measure and Jensen's measure use the standard deviation of portfolio return in the denominator.

Treynor's measure and Jensen's measure use the standard deviation of portfolio return in the denominator.

▸ true

▸ false

kmonette   40   1 Reply

twogat123

Sharpe's measure of portfolio performance compares the risk premium on a portfolio to the ...

Sharpe's measure of portfolio performance compares the risk premium on a portfolio to the ...

Sharpe's measure of portfolio performance compares the risk premium on a portfolio to the portfolio's standard deviation of return.

▸ true

▸ false

alireads   36   1 Reply

jbee

Sharpe's measure of portfolio performance adjusts for risk by dividing total portfolio return by ...

Sharpe's measure of portfolio performance adjusts for risk by dividing total portfolio return by ...

Sharpe's measure of portfolio performance adjusts for risk by dividing total portfolio return by the portfolio beta.

▸ true

▸ false

JohnCena494   45   1 Reply

benschmann

Sharpe's measure is a measure of the risk premium per unit of total risk.

Sharpe's measure is a measure of the risk premium per unit of total risk.

Sharpe's measure is a measure of the risk premium per unit of total risk.

▸ true

▸ false

cyberk   43   1 Reply

deathnature9

Sharpe measures total risk while Treynor and Jensen measure only systematic risk.

Sharpe measures total risk while Treynor and Jensen measure only systematic risk.

Sharpe measures total risk while Treynor and Jensen measure only systematic risk.

▸ true

▸ false

aryaelfkind   43   1 Reply

Hollywood1971

Portfolio revision is the ongoing process of systematically studying the issues in the portfolio and ...

Portfolio revision is the ongoing process of systematically studying the issues in the portfolio and ...

[html]Portfolio revision is the ongoing process of systematically studying the issues in the portfolio and selling certain issues and purchasing others as the means of maintaining a portfolio that best meets the investor's objectives.

▸ true

▸ fals

reync89   41   1 Reply

patriciakim08

Jensen's measure of portfolio performance compares the return a portfolio to the beta adjusted market return.

Jensen's measure of portfolio performance compares the return a portfolio to the beta adjusted market return.

Jensen's measure of portfolio performance compares the return a portfolio to the beta adjusted market return.

▸ true

▸ false

ktpizzle1993   49   1 Reply

daniboi

A Jensen measure of 2.5% means that a security earned 2.5% more than the overall market.

A Jensen measure of 2.5% means that a security earned 2.5% more than the overall market.

A Jensen measure of 2.5% means that a security earned 2.5% more than the overall market.

▸ true

▸ false

Blakksheep33   35   1 Reply

doquangnhat

Zachary holds 15 stocks in his portfolio. The portfolio's return last year was 11%, but one stock, ...

Zachary holds 15 stocks in his portfolio. The portfolio's return last year was 11%, but one stock, ...

[html]Zachary holds 15 stocks in his portfolio.  The portfolio's return last year was 11%, but one stock, RJH, doubled in value.  What should Zachary do if he wants to be as diversified as he was at the beginning of the year?

▸ Sell some of the RJH

onlineerica   49   1 Reply

micp3537

Which one of the following statements is correct if a portfolio has a Jensen measure of return of zero?

Which one of the following statements is correct if a portfolio has a Jensen measure of return of zero?

[html]Which one of the following statements is correct if a portfolio has a Jensen measure of return of zero?

▸ The portfolio has a total return of zero percent.

▸ The portfolio earned exactly its expected return on a risk-adjusted basis.

▸ The po

shopaka12   38   1 Reply

mmorris1537

Which of the following statements about Jensen's measure are correct?I.Through its use of the ...

Which of the following statements about Jensen's measure are correct?I.Through its use of the ...

[html]Which of the following statements about Jensen's measure are correct?

I. Through its use of the capital asset pricing model, Jensen's measure automatically adjusts for market

omaralnatour   43   1 Reply

overlandtrail