The number of stocks that make up the Dow Jones Industrial Average is:5,000.500.30.10.
The P/E ratio:Is the same for all firms in a given industry.Does not change over time.Is typically higher for firms whose earnings are expected to grow rapidly.Is the same as the dividend yield.
A benchmark asset, commonly considered by investors to be risk-free:Treasury Bill (T-Bill).Share of preferred stock.A EurobondA junk bond.
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.
Long-term care insurance:Is only for the very elderly.Can help protect assets from the cost of a nursing home stay.Is not necessary since Medicare always covers long-term care.Is always available regardless of your past health history.
The highest denomination of U.S. currency is:The $20 billThe $100 billThe $1,000 billThe $100,000 bill
Dividends are taxed:At the investor’s marginal income tax rate.At a maximum rate of 15%.Only when the stock is sold.Dividends are never taxed.
Junk bonds:Are bonds issued by junk yards.Are sometimes called "high yield bonds."Are less risky than government bonds.Are not actually bonds.
