If the NASDAQ Is Down and the Dow Jones Industrial

question 315

Multiple Choice

If the NASDAQ is down and the Dow Jones Industrial Average is higher on a particular day, which statement is likely to be TRUE?

• A) Investors are optimistic about the technology sector and pessimistic about the old-economy sector.
• B) Investors are pessimistic about the technology sector and optimistic about the old-economy sector.
• C) Investors prefer bonds to stocks.
• D) Investors prefer stocks to bonds.

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Definitions:

Annually Deposits

Regularly scheduled payments made into an account or investment every year.

Initial Deposit

The first sum of money placed in an account to begin banking activities or to open a new account.

Compounded Annually

The calculation of interest on the initial principal, which also includes all of the accumulated interest from previous periods on a loan or deposit.

Present Value

The present value of a future amount of money or series of cash flows using a given rate of return.