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Explore 22 free Securities questions in FINRA Series 7 Investments. Each question opens with answer choices, the correct answer and a worked solution.
Practise Securities with Quill →Securities MCQs with answers
Showing questions 1–22 of 22.
An investor adds up everything a holding actually returned over a period. That figure is the:Read the answer and worked solution →A share bought at 40 is now worth 46. That six-point rise in value is a:Read the answer and worked solution →Dividends received divided by the initial share price gives the:Read the answer and worked solution →The change in share price divided by the initial price gives the:Read the answer and worked solution →The most common measure of how much returns bounce around is the:Read the answer and worked solution →In finance, that bouncing around of returns is itself treated as:Read the answer and worked solution →A lawsuit against one company, or an accounting scandal at one firm, is an example of:Read the answer and worked solution →To protect against a single company collapsing, investors own a variety of stocks. That practice is:Read the answer and worked solution →The point of holding many companies is that if one goes under from poor management, you:Read the answer and worked solution →A statistic describing how two variables move relative to each other is the:Read the answer and worked solution →A correlation coefficient of 1 means the two variables move:Read the answer and worked solution →Because firm-specific risk can be diversified away, the risk that actually matters to investors is:Read the answer and worked solution →A stock that moves in step with the market as a whole has a beta of:Read the answer and worked solution →For a stock like that, if the market falls 5 percent, the stock tends to fall:Read the answer and worked solution →An airline stock carries 139 percent of the average stock's systematic risk. Investors in it should therefore receive 139 percent of the market:Read the answer and worked solution →The pricing model behind that reasoning rests on the idea that investors bearing higher systematic risk should be:Read the answer and worked solution →An analyst needs a proxy for the risk-free rate. She uses the rate earned on:Read the answer and worked solution →The extra return earned for taking on risk, over what a riskless investment would pay, is the risk:Read the answer and worked solution →In the pricing model equation, the symbol standing for what the asset is expected to earn is the:Read the answer and worked solution →A compounded annual return worked out from the effective annual rate is also known as the:Read the answer and worked solution →A student compares one stock with a whole portfolio. The reason to hold many rather than one favourite is to reduce:Read the answer and worked solution →An analyst reports a standard deviation of returns of 51.9 percent for one airline over a ten-year sample. That figure measures its:Read the answer and worked solution →
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