Exam 13: Managing Your Own Portfolios

Dollar cost averaging is a formula plan which automatically causes investors to purchase more shares when the price is low and purchase fewer shares when the price is high.

To compute the holding period return on a bond investment, the investor should divide the purchase price of the bond into

The holding period return for mutual funds should be based on

Once you establish a portfolio designed to achieve your investment goals, you can relax and forget about your investments until such time as you need the funds.

A conservative asset allocation would rely heavily on bonds and short-term securities.

Investors who use formula plans believe that they have above average ability to time the market and pick successful investments.

Which one of the following statements is correct concerning dollar cost averaging plans?

Marti is 31 years old and is saving for retirement.Which one of the following portfolio allocations might best suit her situation if she is willing to accept a fair amount of risk in exchange for long-term capital appreciation?

Which of the following measures is based on the capital asset pricing model?