Questions from General Investment


Q: An investor buys a bond for $10,000. The

An investor buys a bond for $10,000. The bond pays $200 interest every six months. After 18 months, the investor sells the bond for $9,500. Describe the types of income and/or loss the investor had.

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Q: Why is it important to continuously manage and control your portfolio?

Why is it important to continuously manage and control your portfolio?

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Q: What role does current market information play in analyzing investment returns?

What role does current market information play in analyzing investment returns? How do changes in economic and market activity affect investment returns? Explain.

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Q: Which indexes can you use to compare your investment performance with general

Which indexes can you use to compare your investment performance with general market returns? Briefly explain each of these indexes.

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Q: What are indicators of bond market behavior, and how are they

What are indicators of bond market behavior, and how are they different from stock market indicators? Name three sources of bond yield data.

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Q: Describe call and put options. Are they issued like other corporate

Describe call and put options. Are they issued like other corporate securities?

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Q: Describe three ways in which investors can use stock options.

Describe three ways in which investors can use stock options.

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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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Q: Briefly describe the differences and similarities between stock-index options and

Briefly describe the differences and similarities between stock-index options and stock options. Do the same for foreign currency options and stock options.

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Q: Identify and briefly discuss two ways to use stock-index options

Identify and briefly discuss two ways to use stock-index options. Do the same for foreign currency options.

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