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.
     


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.

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.

Buying on margin::

Precludes the advantage of using leverage.
Is not affected by limits on borrowing established by ERISA.
Minimizes losses if the price of a security declines.
Is possible by borrowing from a broker.

A zero coupon bond:

Is sold at a discount to face value.
Is worthless.
Matures immediately.
Always has a call feature.

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

5,000.
500.
30.
10.

Of the following, the safest type of investment is:

Under the mattress.
An FDIC-insured CD.
An international growth mutual fund.
An Internet stock.

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.

Investments in CDs:

Are riskier than investments in stocks.
Are inferior to investments in 8-tracks and vinyl records.
Are always tax deferred.
Are insured by the FDIC, but have generally underperformed stock investments over the long run.

 
   
   
H.I.B. Planning & Benefits
118 Wall Street • Princeton, NJ • 08540
Phone: 732-780-2406
Phone: 609-924-2049		 • Fax: 732-385-9746
• dirk@HIBPLAN.com

Dirk Alexander is a Registered Representative of and offers securities products & services through Royal Alliance Associates, Inc. Member FINRA/SIPC, a registered broker-dealer. In this regard, this communication is strictly intended for individuals residing in the states of NJ, NY, PA, MA, CT, FL & MD. No offers may be made or accepted from any resident outside the specific state(s) referenced.

Dirk Alexander is also separately registered as an investment adviser representative under New Century Financial Group, LLC a Registered Investment Advisor registered with the Securities and Exchange Commission. As such, advisory services are strictly intended for individuals residing in the states where we have notice filed: CA, CO, CT, FL, GA, HI, IL, LO, MA, NH, NJ, NY, NC, OH, PA, SC, TN, TX, VA, WA.

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