The number of stocks that make up the Dow Jones Industrial Average is:

5,000.
500.
30.
10.

The January Effect:

Is the influence on the market of the mutual funds’ performance reported in December.
Is another name for the Superbowl anomaly believed to affect stock prices.
Is the result of several studies regarding inexplicably higher returns during January.
Supports the predictabilityof cyclical prices determined by chaos theory.
(Portfolio Construction, Management and Protection by Robert A. Strong, p. 182.)

If a mutual fund manager increases his/her cash position, it can be said:

The manager is anticipating a bear market.
The manager is anticipating a bull market.
The manager is trying to reduce the fund’s taxable gains.
The manager is aggressive.

Junk bonds:

Are bonds issued by junk yards.
Are sometimes called "high yield bonds."
Are less risky than government bonds.
Are not actually bonds.

Buying on margin::

Precludes the advantage of using leverage.
Is not affected by limits on borrowing established by ERISA.
Minimizes losses if the price of a security declines.
Is possible by borrowing from a broker.

Of the following, the safest type of investment is:

Under the mattress.
An FDIC-insured CD.
An international growth mutual fund.
An Internet stock.

Since the mid-1920s inflation in the United States has averaged:

About 3 percent.
About 7 percent.
About 10 percent.
About 12 percent

A prudent investor:

Does not have to consider the tax effect of long-term gains.
Evaluates his/her investments on an after-tax basis.
Studiously avoids income-shifting among funds.
Knows that a drop in the dividend payout signals a stronger firm.