1. Dollar-cost averaging is (Points : 3) Periodically buying a round lot of stock

| June 8, 2016

Question
1.Dollar-cost averaging is (Points : 3)

Periodically buying a round lot of stock
periodically investing a specified dollar amount in a stock
a means to increase the average cost basis
a means to insure a positive return

2.The S&P 500 stock index is more sensitive to changes in the prices of small stocks than the stocks of large companies. (Points : 3)

True
False

3.The S&P 500 uses (Points : 3)

A simple average
A compound average
A geometric average
a value-weighted average

4.Which of the following is the lest broad-based measure of stock prices? (Points : 3)

Nasdaq market index
Dow Jones industrial average
S&P 500 stock index
AMEX market value index

5.The Russell 3000 is broad-based measure of bond prices. (Points : 3)

True
False

6.Indices of Nasdaq stocks tend to be less volatile than the S&P 500 index. (Points : 3)

True
False

7.The Dow Jones industrial and utility averages include a relatively small number of stocks. (Points : 3)

True
False

8.The basis is defined as spot minus futures. For a short hedger basis strengthens unexpectedly. Which of the following is true (Points : 3)

hedger’s position improves.
The hedger’s position worsens.
The hedger’s position sometimes worsens and sometimes improves.
The hedger’s position stays the same.

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