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.
     


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.

The net asset value (NAV) of a bond fund:

Cannot be determined.
Changes as interest rates change.
Is determined by the average coupon rates of the bonds in the fund.
Will not change as bonds in the fund are bought or sold.

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.

Since the mid-1920s inflation in the United States has averaged:

About 3 percent.
About 7 percent.
About 10 percent.
About 12 percent

The financial pyramid implies that:

An investment near the top of the pyramid has a higher potential return, but also carries higher risk.
Egyptian pharoahs were astute investors.
Eating nutritious meals from the "food pyramid" will make you a better investor.
"Pyramid" or "Ponzi" schemes are good investments.

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

5,000.
500.
30.
10.

Mortgage payments:

Can be completely deducted from income for tax purposes.
Vary from month to month on a fixed rate loan.
Represent high principal payments early in the term of the loan.
Are typically tax deductible to the extent that they represent payment of interest.

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.

 
   
   
Tom Luing, Investment Adviser Representative | Capital Management Associates, Inc.
7900 Xerxes Avenue South
Suite 500
Bloomington, MN 55431
Phone: Direct: 952-746-1111 Main: 952-893-1200 Fax: 952-893-0133
toml@tomluing.com

As a Certified Financial Planner® , who focuses on your personal financial situation and helps you pursue your dreams, Tom Luing adheres to the highest standards and code of ethics in the industry. Securities through Capital Management Securities, Inc., Member FINRA, SIPC  Private Policy.