Financial IQ Test  
What is your financial IQ? Take this 8-question quiz to find out! If you don’t like the results, try again. You will be asked a different set of questions.
     


Stocks whose returns are tied closely to the overall national economy are typically called:

Blue Chip stocks.
Defensive stocks.
Speculative stocks.
Cyclical stocks.

A limit order:

Is used to protect a profit if it is a limit order to buy.
Is used to execute a sell at a specific price or lower if possible.
Is an order to buy or sell at a specific price or better and can be good till canceled.
Is an order to be executed at the best price available and is not known until after confirmation is received.

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 January Effect:

Is the influence on the market of the mutual funds’ performance reported in December.
Is another name for the Superbowl anomaly believed to affect stock prices.
Is the result of several studies regarding inexplicably higher returns during January.
Supports the predictabilityof cyclical prices determined by chaos theory.
(Portfolio Construction, Management and Protection by Robert A. Strong, p. 182.)

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.

Disability income insurance:

Can cover part of your lost income while you are disabled.
Pays medical expenses associated with a disability.
Should only be purchased by star athletes.
Is primarily for the unemployed.

The financial pyramid implies that:

An investment near the top of the pyramid has a higher potential return, but also carries higher risk.
Egyptian pharoahs were astute investors.
Eating nutritious meals from the "food pyramid" will make you a better investor.
"Pyramid" or "Ponzi" schemes are good investments.

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.

 
   
   
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610 Lakeside Park Southampton, PA 18966
Phone: (215) 396-3312 / (610) 617-7220 Fax: (215) 396-3306 / (610) 617-7221
Ellen@PhilaFinancial.com Jared@PhilaFinancial.com Jarrett@PhilaFinancial.com Paul@PhilaFinancial.com Sean@PhilaFinancial.com

Financial Group of Philadelphia
610 Lakeside Park
Southampton, PA 18966
Phone: (215) 396-3312
www.philafinancial.com
 

Securities offered through Woodbury Financial Services, Inc., Member FINRA, SIPC

The Financial Group of Philadelphia and Woodbury Financial Services Inc., are not affiliated entities. Services offered only where licensed to do business. Currently licensed in PA, NJ.