Exam 20: Modern Investment Theory

A) To provide the highest quality education possible regardless of costs.
B) To choose the education that enables the recipient to minimize educational costs.
C) To provide a quality education that enables the recipient to receive a high return on investment.
D) To provide the least education possible for a given return on investment objective.
E) None of the above.

Correct Answer

verified

Show Answer

A) Its absence can lead to a misallocation of resources that affects society's productivity.
B) Its absence can lead to financial ruin for the household.
C) Its absence can lead to lower accumulation of wealth for the household.
D) All of the above.
E) None of the above.

Correct Answer

verified

Show Answer

A) Appreciating diversification and the benefits of long term investing.
B) Understanding the advantage of index funds for low maintenance supervision.
C) How to deal with impulsive investment behavior.
D) Explaining the most attractive way to purchase investment selections.
E) All of the above should be discussed to assist clients in financial literacy in the area of debt.

Correct Answer

verified

Show Answer

A) No.
B) Yes.
C) Yes,if the foreign schools can participate in the Department of Education's student aid program.
D) Yes,unless the foreign schools can participate in the Department of Education's student aid program.
E) None of the above.

Correct Answer

verified

Show Answer

A) Series EE.
B) IRA.
C) 529 plans.
D) There are limitations associated with all of the above.
E) There are limitations associated with none of the above.

Correct Answer

verified

Show Answer

A) Estimate the total cost for parents.
B) Calculate the cost of education.
C) Establish investment policy.
D) Project the potential for financial aid.
E) None of the above.

Correct Answer

verified

Show Answer

A) Federal PLUS loans.
B) State PLUS loans.
C) Stafford loans.
D) All of the above.
E) None of the above.

Correct Answer

verified

Show Answer

A) The appropriate use of borrowed funds.
B) How to get out of debt.
C) Establishing a formal or informal family budget.
D) What is the best source of credit?
E) All of the above should be discussed to assist clients in financial literacy in the area of debt.

Correct Answer

verified

C

A) Tuition.
B) Supplies required by the college.
C) Reasonable costs for room and board for students attending college at least half time.
D) Reasonable costs for room and board for students attending college at least one quarter time.
E) All of the above are qualified withdrawals.

Correct Answer

verified

D

A) Series EE.
B) Coverdell education savings.
C) 529 plans.
D) All of the above.
E) None of the above.

Correct Answer

verified

Show Answer

A) Not change
B) Decrease
C) Increase.
D) Represent 13.3% of the portfolio.
E) None of the above.

Correct Answer

verified

C

A) Particularly low family income.
B) Particularly low SAT scores.
C) Particularly high SAT scores.
D) All of the above.
E) None of the above.

Correct Answer

verified

Show Answer

A) $91,850-$121,850.
B) $114,000 - 129,000
C) $95,000-$121,850.
D) $61,000-$129,000.
E) None of the above.

Correct Answer

verified

Show Answer

A) Federal PLUS loans.
B) Federal Perkins loans.
C) Stafford loans.
D) All of the above.
E) None of the above.

Correct Answer

verified

Show Answer

Correct Answer

verified

a.Establish educational goals.
b.Calcula...

View Answer

Show Answer

Correct Answer

verified

Show Answer

A) $91,850-$121,850.
B) $76,000-$91,000
C) $113,950-$143,950
D) $61,200-$121,850.
E) None of the above.

Correct Answer

verified

Show Answer

A) Working to understand personal financial terms.
B) Making sure to read the business section of the newspaper on a frequent basis.
C) Being able to make financial decisions capably.
D) All of the above.
E) None of the above.

Correct Answer

verified

Show Answer