FREE Certified Trust and Financial Advisor Question and Answers

Question 1

Bond price percentages are expressed as:

Accepted Answer

Par value

Answer

Intrinsic value

Answer

Future value

Answer

Discount value

Question 2

Which of the following industries is susceptible to price and business cycle changes?

Accepted Answer

Cyclical industry

Answer

Defensive industry

Answer

Interest sensitive industry

Answer

Growth industry

Question 3

There are several investing options, with the exception of:

Accepted Answer

Collateral securities

Answer

Derivative assets

Answer

Equity securities

Answer

Fixed income securities

Question 4

A temporary ban on program trading in a certain security or market is known as a _________, and it is typically used to prevent sharp price fluctuations.

Accepted Answer

Answer

Ticker tape

Answer

Super Dot

Question 5

Which of the following is the difference between an investment's actual return and its predicted return?

Accepted Answer

Abnormal Return

Answer

Normal return

Answer

Expected return

Answer

Tax return

Question 6

Which of the following stocks is typically an unusually risky investment?

Accepted Answer

Penny stock

Answer

Growth stock

Answer

Blue chip stock

Answer

None of the above

Question 7

The largest possible risk to investors in _______ is overall market risk.

Accepted Answer

Stock funds

Answer

Hedge funds

Answer

Growth funds

Answer

Bonds funds