1-5

Investments with S&P bind-in card

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
FIN 340 Fall 07 Professor Milligan Exam # 1 Version #A Student: ___________________________________________________________________________ 25 multiple choice 4 points each. 1. Suppose you pay $9,700 for a Treasury bill maturing in three months. What is the holding period return for this investment? A. 3% B. 3.1% C. 12.4% D. 16.7% 2. The commission, or front-end load, paid when you purchase shares in mutual funds, may not exceed __________. A. 3% B. 6% C. 8.5% D. 10.2% 3. Investors who wish to liquidate their holdings in a closed-end fund may ___________________. A. sell their shares back to the fund at a discount B. sell their shares back to the fund at net asset value C. sell their shares on the open market D. None of the above A
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
FIN 340 Fall 07 Professor Milligan 4. The capital allocation line is also the __________. A. investment opportunity set formed with a risky asset and a risk-free asset B. investment opportunity set formed with two risky assets C. line on which lie all portfolios that offer the same utility to a particular investor D. line on which lie all portfolios with the same expected rate of return and different standard deviations 5. The process of polling potential investors regarding their interest in a forthcoming initial public offering (IPO) is called _________. A. interest building B. book building C. market analysis D. customer identification 6. Assume that you have recently purchased 100 shares in an investment company. Upon examining the balance sheet, you note the firm is reporting $225 million in assets, $30 million in liabilities, and 10 million shares outstanding. What is the Net Asset Value (NAV) of these shares? A. $25.50 B. $22.50 C. $19.50 D. $1.95 7. The dollar weighted return is the same as the __________. A. difference between cash inflows and cash outflows B. arithmetic average return C. geometric average return D. internal rate of return A
Background image of page 2
FIN 340 Fall 07 Professor Milligan 8. Initial margin requirements on stocks are set by __________. A. the Federal Deposit Insurance Corporation B. the Federal Reserve C. the New York Stock Exchange D. the Securities and Exchange Commission 9. A ___ invests in a portfolio that is fixed for the life of the fund. A. mutual fund B. money market fund C. managed investment company D. unit investment trust 10. Preferred stock is like long-term debt in that _____. A. it gives the holder voting power regarding the firm's management B. it promises to pay to its holder a fixed stream of income each year C. the dividend is a tax-deductible expense for the firm D. all of the above 11. An official description of a particular mutual fund's planned investment policy can be found in the fund's _____________. A. prospectus
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 02/26/2008.

Page1 / 17

1-5 - FIN 340 Fall 07 Professor Milligan Exam # 1 Version...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online