1. The security that represents equity or ownership of a corporation is
a. stock options.
b. common stock.
c. long-term loans.
d. corporate bonds.
2. Using the budget method of determining life insurance needs, a family's future expected expenses is considered.
True
False
3. A stock with a P/E of 10 may be a bargain, but more research is required.
True
False
4. If your retirement plan has a vesting requirement, it must be
a. an employer sponsored retirement plan.
b. a defined-contribution plan.
c. a locked-in retirement plan.
d. a defined-benefit plan.
5. If Jim's stock return was -1 percent and the TSX stock index had a 3 percent return, the excess return of Jim's stock above the market is
a. -2 percent.
b. 4 percent.
c. -4 percent.
d. 2 percent.