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Multiple Choice Quiz
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1
A firm that sells stocks sells part of itself.
A)True
B)False
2
Today's Dow Jones Industrial Average is based on the stock prices of 500 of the largest companies in the United States.
A)True
B)False
3
The dividend-discount model tells us that stock prices should be higher when dividends are low.
A)True
B)False
4
The theory of efficient markets implies that only efficient investors can beat the market average.
A)True
B)False
5
If you hold them for a long enough period, stocks may not be a risky investment and may even be less risky than holding bonds.
A)True
B)False





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