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.

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.

Variable life insurance:

Offers tax deferral.
May provide higher return potential and greater risk than a whole life policy.
Allows you to invest a portion of the premium in various subaccounts.
All of the above.

A stock certificate:

Is always issued to the individual investor.
Represents a primary claim on the firm’s assets.
Represents ownership in a corporation.
Is handwritten.

If you call your broker to purchase a "round lot" you are:

Buying a mutual fund of 100 different stocks.
Authorizing him/her to decide how many shares to buy.
Negotiating commissions on future purchases and sales.
Purchasing 100 shares of a specific stock.

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

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

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.

Of the following, the safest type of investment is:

Under the mattress.
An FDIC-insured CD.
An international growth mutual fund.
An Internet stock.