Questions from General Investment


Q: Identify the four main types of online investment tools. How can

Identify the four main types of online investment tools. How can they help you become a better investor?

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Q: Using the data in the following table, assume you are using

Using the data in the following table, assume you are using a variable-ratio plan. You have decided that when the speculative portfolio reaches 60% of the total, you will reduce its proportion to 45%....

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Q: Charlotte Smidt bought 2,000 shares of the balanced no-

Charlotte Smidt bought 2,000 shares of the balanced no-load LaJolla Fund exactly one year and two days ago for an NAV of $8.60 per share. During the year, the fund distributed investment income divide...

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Q: Dorothy Santosuosso does a lot of investing in the stock market and

Dorothy Santosuosso does a lot of investing in the stock market and is a frequent user of stock-index options. She is convinced that the market is about to undergo a broad retreat and has decided to b...

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Q: Myles Houck holds 600 shares of Lubbock Gas and Light. He

Myles Houck holds 600 shares of Lubbock Gas and Light. He bought the stock several years ago at $48.50, and the shares are now trading at $75. Myles is concerned that the market is beginning to soften...

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Q: Nick Fitzgerald holds a well-diversified portfolio of high-quality

Nick Fitzgerald holds a well-diversified portfolio of high-quality, large-cap stocks. The current value of Fitzgerald’s portfolio is $735,000, but he is concerned that the market is heading for a big...

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Q: Angelo Martino just purchased 500 shares of AT&E at $

Angelo Martino just purchased 500 shares of AT&E at $61.50, and he has decided to write covered calls against these stocks. Accordingly, he sells five AT&E calls at their current market price of $5.75...

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Q: How can behavioral finance have any bearing on investor returns? Do

How can behavioral finance have any bearing on investor returns? Do supporters of behavioral finance believe in efficient markets? Explain.

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Q: Suppose the DJIA stands at 11,200. You want to

Suppose the DJIA stands at 11,200. You want to set up a long straddle by purchasing 100 calls and an equal number of puts on the index, both of which expire in three months and have a strike of 112. T...

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Q: What’s the most that can be made from writing calls? Why

What’s the most that can be made from writing calls? Why would an investor want to write covered calls? Explain how you can reduce the risk on an underlying common stock by writing covered calls.

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