1. How do the geometric and arithmetic average dividend growth rates compare when the annual growth rates are positive?
A. The arithmetic average dividend growth rate is generally larger than the geometric average growth rate
B. The arithmetic average dividend growth rate is approximately equal to the geometric average growth rate
C. The arithmetic average dividend growth rate is generally smaller than the geometric average growth rate
D. The two rates are unrelated
2. Which of the following is an example of the money illusion concept?
A. A person refuses to sell stocks at a loss
B. A person constantly ignores the effects of inflation on his or her investments
C. A person invests primarily in mutual funds which have performed well in the past two years
D. A person habitually doubles down after a stock he or she purchases declines in price.
3. Which of the following best describes a support level?
A. The maximum price which the market can bear for a stock
B. The maximum point of a range in which a stock is expected to trade
C. The minimum expected return amount for a stock
D. The minimum price at which a stock is expected to trade