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.

A benchmark asset, commonly considered by investors to be risk-free:

Treasury Bill (T-Bill).
Share of preferred stock.
A Eurobond
A junk bond.

The astute investor is aware that:

Investment risk is limited to the fortunes of the specific security purchased.
Computers make investment decisions scientific and eliminate much of the risk.
Actual outcome of any investment may differ from the expected outcome.
When trading on-line, brokerage commissions are always negotiable.

For most Americans, taxes are due on:

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

A stock certificate:

Is always issued to the individual investor.
Represents a primary claim on the firm’s assets.
Represents ownership in a corporation.
Is handwritten.

The term generally used to describe the market in which prices fully reflect all available information is:

The greater fool hypothesis.
Random walk hypothesis.
The size-effect hypothesis.
Efficient markets hypothesis.

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

5,000.
500.
30.
10.

The total stock market (S&P 500) return during the 1990s was:

Predicted by most Wall Street analysts at the beginning of the decade.
Lower than the historical average
The highest of any decade in the 20th century.
Approximately the same as the total return during the 1970s.