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

5,000.
500.
30.
10.

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.

A prudent investor:

Does not have to consider the tax effect of long-term gains.
Evaluates his/her investments on an after-tax basis.
Studiously avoids income-shifting among funds.
Knows that a drop in the dividend payout signals a stronger firm.

Long-term care insurance:

Is only for the very elderly.
Can help protect assets from the cost of a nursing home stay.
Is not necessary since Medicare always covers long-term care.
Is always available regardless of your past health history.

The highest denomination of U.S. currency is:

The $20 bill
The $100 bill
The $1,000 bill
The $100,000 bill

Dividends are taxed:

At the investor’s marginal income tax rate.
At a maximum rate of 15%.
Only when the stock is sold.
Dividends are never taxed.

Junk bonds:

Are bonds issued by junk yards.
Are sometimes called "high yield bonds."
Are less risky than government bonds.
Are not actually bonds.