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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.

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.

Beta is commonly used as a relative measure of risk. It measures:

Standard deviation of a stock’s price.
The expected total returns of a diversified portfolio.
The unsystematic risk component of an investment.
The risk of a security or portfolio relative to the overall market.

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.

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.

Mortgage payments:

Can be completely deducted from income for tax purposes.
Vary from month to month on a fixed rate loan.
Represent high principal payments early in the term of the loan.
Are typically tax deductible to the extent that they represent payment of interest.

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.

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

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

 
   
   
Key Financial, Inc.,Financial Planning, Wealth Management, Financial Services, Financial Management, West Chester, Pa

1560 McDaniel Drive

 • West Chester, PA • 19380
Phone: 610-429-9050 • Fax: 610-429-9279
• pbrennan@keyfinancialinc.com

Securities and Advisory services offered through Royal Alliance Associates, Inc. member FINRA/SIPC and a registered investment advisor. Advisory services also offered through Key Financial, Inc. a registered investment advisor not affiliated with Royal Alliance Associates.

The Advisors at Key Financial Inc., are Registered Representatives of and offer securities products & services through Royal Alliance Associates, Inc. Member FINRA/SIPC, a registered broker-dealer. In this regard, this communication is strictly intended for individuals residing in the states of California, Delaware, Florida, Georgia, Illinois, Indiana, Maryland, Massachusetts, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, South Carolina, Texas and Virginia. No offers may be made or accepted from any resident outside the specific states referenced.

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