Disability income insurance:Can cover part of your lost income while you are disabled.Pays medical expenses associated with a disability.Should only be purchased by star athletes.Is primarily for the unemployed.
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.
The P/E ratio:Is the same for all firms in a given industry.Does not change over time.Is typically higher for firms whose earnings are expected to grow rapidly.Is the same as the dividend yield.
A prudent investor:Does not have to consider the tax effect of long-term gains.Evaluates his/her investments on an after-tax basis.Studiously avoids income-shifting among funds.Knows that a drop in the dividend payout signals a stronger firm.
The highest denomination of U.S. currency is:The $20 billThe $100 billThe $1,000 billThe $100,000 bill
Junk bonds:Are bonds issued by junk yards.Are sometimes called "high yield bonds."Are less risky than government bonds.Are not actually bonds.
A 35-year old individual with 4 young children and a spouse who doesn’t work should probably consider purchasing which of the following types of insurance:Long-term care insurance.Disability insurance.Life insurance.(b) and (c).
Gold may be a good investment if:Inflation is expected to increase.You like the color.World peace comes to pass.Foreign governments sell their gold reserves.