Investment Strategy Test

Question 1

You put $500 down to purchase stock on margin for $1,000. The stock's value decreases by 50%. You market it. How much of the $500 you initially invested are you ultimately left with?

Accepted Answer

$0

Answer

$1000

Answer

$100

Answer

$500

Question 2

If Danita invests $6,000 at a basic yearly interest rate of 5%, her money will be worth more after five years.

Accepted Answer

$1,500.

Answer

$3,000

Answer

$1,200.

Answer

$6,000

Question 3

Zach made a $300 stock market investment. His initial $300 increased to $330 after a year thanks to the stock market's 10 percent average annual return. In two years, his $300 had increased to $363. The following year, his initial investment had grown to $399. Zach increased his investment as a result of

Accepted Answer

Compounding

Answer

Opportunity cost

Answer

Banking services

Answer

Globalization

Question 4

In general, bond prices will _____ if interest rates decrease.

Accepted Answer

Increase

Answer

Decrease

Answer

Have no impact

Answer

None of the above

Question 5

Which definition of "selling short" is the best?

Accepted Answer

Selling borrowed stock shares

Answer

Selling stocks before they have achieved their peak

Answer

Selling stock shares at a loss

Answer

Selling stock shares soon after purchasing them

Question 6

What action should you take if a financial client reports a portfolio issue?

Accepted Answer

Immediately apologize and find a solution to the issue.

Answer

Request that the manager call the client back.

Answer

Fees for the client's subsequent five transactions are waived.

Answer

Once the customer has calmed down, call the client again.

Question 7

Deena is looking into potential investments. How can she determine the reliability of a source of information?

Accepted Answer

Check the author's credentials

Answer

See the publication date of the source

Answer

Search for any potential biases.

Answer

Verify the citation of facts and figures.

You put $500 down to purchase stock on margin for $1,000.The stock's value decreases by 50%.You market it.How much of the $500 you initially invested are you ultimately left with?

You put $500 down to purchase stock on margin for $1,000.
The stock's value decreases by 50%.
You market it.
How much of the $500 you initially invested are you ultimately left with?