1. The security that represents equity or ownership of a corporation is

a. stock options.

b. common stock.

c. long-term loans.

d. corporate bonds.

2. Using the budget method of determining life insurance needs, a family's future expected expenses is considered.

True

False

3. A stock with a P/E of 10 may be a bargain, but more research is required.

True

False

4. If your retirement plan has a vesting requirement, it must be

a. an employer sponsored retirement plan.

b. a defined-contribution plan.

c. a locked-in retirement plan.

d. a defined-benefit plan.

5. If Jim's stock return was -1 percent and the TSX stock index had a 3 percent return, the excess return of Jim's stock above the market is

a. -2 percent.

b. 4 percent.

c. -4 percent.

d. 2 percent.