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

5,000.
500.
30.
10.

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.)

If a mutual fund manager increases his/her cash position, it can be said:

The manager is anticipating a bear market.
The manager is anticipating a bull market.
The manager is trying to reduce the fund’s taxable gains.
The manager is aggressive.

Junk bonds:

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

Buying on margin::

Precludes the advantage of using leverage.
Is not affected by limits on borrowing established by ERISA.
Minimizes losses if the price of a security declines.
Is possible by borrowing from a broker.

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

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

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

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

Investments in CDs:

Are riskier than investments in stocks.
Are inferior to investments in 8-tracks and vinyl records.
Are always tax deferred.
Are insured by the FDIC, but have generally underperformed stock investments over the long run.