Quiz_ Individual Investors_ UGBA 135 & MBA 296 - Personal Financial Management (Spring 2024)
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Quiz: Individual Investors Due Apr 21 at 11:59pm
Points 11
Questions 11
Available until May 5 at 11:59pm
Time Limit None
Allowed Attempts Unlimited
Instructions
Attempt History
Attempt
Time
Score
LATEST
Attempt 1
4 minutes
11 out of 11
Correct answers are hidden.
Score for this attempt: 11 out of 11
Submitted Apr 21 at 8:58pm
This attempt took 4 minutes.
Question 1
1 / 1 pts
Earn more
Diversify better
Trade more frequently
Question 2
1 / 1 pts
CAUTION: re-taking the quiz after the deadline will mark the quiz as "late" and a late penalty will be
assessed.
If you are looking for additional practice after the deadline, please take the practice version of the
quizzes instead.
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Overconfident traders tend to
In a study of individual investors with accounts at a discount brokerage firm, Professor Odean compared
the performance of stocks the investors bought to those they sold over the 12 months following the
The stocks the investors bought underperformed the stocks they sold by an average of about 3 percentage points
before accounting for the costs of commissions.
The stocks the investors bought outperformed the stocks they sold by an average of about 3 percentage points after
accounting for the costs of commissions.
The stocks the investors bought underperformed the stocks they sold by an average of about 3 percentage points after
accounting for the costs of commissions.
The stocks the investors bought outperformed the stocks they sold by an average of about 3 percentage points before
accounting for the costs of commissions.
Question 3
1 / 1 pts
Women traded more actively than men and outperformed a buy-and-hold strategy.
Men traded more actively than women and underperformed a buy-and-hold strategy.
Women traded more actively than men and underperformed a buy-and-hold strategy.
Men traded more actively than women and outperformed a buy-and-hold strategy.
Question 4
1 / 1 pts
Many houses being damaged in the same earthquake.
A woman leaves her expensive diamond earrings on the night stand at a cheap hotel because she knows the earrings
are insured.
A young man who has does not have health insurance finds out that he needs to have expensive medically necessary
surgery in the next year, therefore he signs up for health insurance at the next open enrollment period (i.e., the next
opportunity).
Question 5
1 / 1 pts
transaction. He found:
In a study of men and women who were investors at a discount brokerage, Professor Odean and his co-
author Brad Barber found:
Which of the following is an example of moral hazard?
Which of the following is an example of adverse selection?
Many houses being damaged in the same earthquake.
A woman leaves her expensive diamond earrings on the night stand at a cheap hotel because she knows the earrings
are insured.
A young man who has does not have health insurance finds out that he needs to have expensive medically necessary
surgery in the next year, therefore he signs up for health insurance at the next open enrollment period (i.e., the next
opportunity).
Question 6
1 / 1 pts
A woman leaves her expensive diamond earrings on the night stand at a cheap hotel because she knows the earrings
are insured.
Many houses being damaged in the same earthquake.
A young man who has does not have health insurance finds out that he needs to have expensive medically necessary
surgery in the next year, therefore he signs up for health insurance at the next open enrollment period (i.e., the next
opportunity).
Question 7
1 / 1 pts
True
False
Question 8
1 / 1 pts
True
False
Question 9
1 / 1 pts
Which of the following is an example of correlated risks?
Relative to their opportunities, most individual investors are more likely to sell a stock that has gone
down in value since they bought it than a stock that has gone up. Individual investors tend to be on the buy side of the market for stocks that catch their attention.
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True
False
Question 10
1 / 1 pts
Poor advice from financial advisors
Commissions
Poor stock selection
Poor market timing
A tax on trading
Question 11
1 / 1 pts
True
False
Quiz Score: 11 out of 11
According to one class video, over half of the new money flowing into mutual funds each year goes to
the funds in the top 20% of fund performance the previous year. In the study of Taiwanese individual investors discussed in the videos, which of the following was not
given as a reason why Taiwanese individual investors as a group underperform in the stock market:
Most people have a better intuitive grasp of probability than of quantities.
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Your grandfather has agreed to deposit a certain amount of money each year into an account paying 7.90 percent annually to help you
go to graduate school. Starting next year, and for the following four years, he plans to deposit $2,350, $8,600, $7,200, $6,600, and
$12,150 into the account. How much will you have at the end of the five years? (Round answer to 2 decimal places, e.g. 15.25.)
Future value at end of five years
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Selling stock to investors for cash would result in which of the following?
Σorress
Multiple Choice
A debit to additional paid-in capital and a credit to cash
A credit to both cash and additional paid-in capital
A debit to cash and a credit to common stock
A debit to cash and a credit to the investment account
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Loans are evaluated in a two-step process with two resources. The processing times for the resources are 180 seconds and 99
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