Financial IQ Test  
What is your financial IQ? Take this 8-question quiz to find out! If you don’t like the results, try again. You will be asked a different set of questions.
     


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

5,000.
500.
30.
10.

Technical analysis is a technique based on factors that are inherent to the market and include:

Number of shares sold on a specific day.
Number of consecutive days of price increases of a stock.
Changes in the direction of movement of a market index.
All of the above

The astute investor is aware that:

Investment risk is limited to the fortunes of the specific security purchased.
Computers make investment decisions scientific and eliminate much of the risk.
Actual outcome of any investment may differ from the expected outcome.
When trading on-line, brokerage commissions are always negotiable.

For tax purposes, a capital gain is considered long term if the investment was held more than:

1 day.
1 month.
1 year.
10 years.

The term generally used to describe the market in which prices fully reflect all available information is:

The greater fool hypothesis.
Random walk hypothesis.
The size-effect hypothesis.
Efficient markets hypothesis.

Beta is commonly used as a relative measure of risk. It measures:

Standard deviation of a stock’s price.
The expected total returns of a diversified portfolio.
The unsystematic risk component of an investment.
The risk of a security or portfolio relative to the overall market.

Stocks whose returns are tied closely to the overall national economy are typically called:

Blue Chip stocks.
Defensive stocks.
Speculative stocks.
Cyclical stocks.

Junk bonds:

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

 
   
   
J. Michael Advisors
4099 McEwen Rd., Suite 150 Dallas, TX 75244-5053
Phone: 972-490-9400 Toll-Free: 866-466-6943 Fax: 972-490-3338
mikeham@fifsmail.com

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