Financial IQ Test  
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If a mutual fund manager increases his/her cash position, it can be said:

The manager is anticipating a bear market.
The manager is anticipating a bull market.
The manager is trying to reduce the fund’s taxable gains.
The manager is aggressive.

Technical analysis is a technique based on factors that are inherent to the market and include:

Number of shares sold on a specific day.
Number of consecutive days of price increases of a stock.
Changes in the direction of movement of a market index.
All of the above

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

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

The strength of economic growth in the United States is reported as changes in the:

The Gross Domestic Product (GDP).
The National Association of Securities Dealers Index (NASDAQ).
The Dow Jones Industrial Average (DJIA).
The Wealth Index of Investments and Inflation (WIII).

Determining total return typically utilizes the:

Inflation-adjusted annual performance of all mutual-funds.
Annual capital gain plus dividend payout of a stock or fund.
Math skills learned in college-level calculus courses.
Dividend yield on the Dow Jones Industrial Average.

For most Americans, taxes are due on:

January 1.
April 1.
April 15.
December 31.

Stocks whose returns are tied closely to the overall national economy are typically called:

Blue Chip stocks.
Defensive stocks.
Speculative stocks.
Cyclical stocks.

The January Effect:

Is the influence on the market of the mutual funds’ performance reported in December.
Is another name for the Superbowl anomaly believed to affect stock prices.
Is the result of several studies regarding inexplicably higher returns during January.
Supports the predictabilityof cyclical prices determined by chaos theory.
(Portfolio Construction, Management and Protection by Robert A. Strong, p. 182.)

 
   
   
Selective Benefits Group
17 Wilrich Glen Morristown, NJ 07960
Phone: 646-820-401k Fax: 973-359-8822
abluestone@sbgroup.com rbrown@sbgroup.com

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