2-10,12

Investments with S&P bind-in card

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The Sample Final Exam Student: ___________________________________________________________________________ 1. Which of the following is not a money market instrument? A. treasury bill B. commercial paper C. preferred stock D. banker's acceptance 2. Money market securities are sometimes referred to as "cash equivalent" because A. they are marketable B. they are liquid C. they are low-risk D. all of the above 3. A __________ gives its holder the right to sell an asset for a specified exercise price on or before a specified expiration date. A. call option B. futures contract C. put option D. none of the above 4. Underwriting is one of the services provided by ____. A. the SEC B. investment bankers C. publicly traded companies D. FDIC 5. A level _____ subscriber to the NASDAQ system may enter bid and ask prices. A. 1 B. 2 C. 3 D. 4
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6. __________ is a false statement regarding specialists. A. On a stock exchange all buy or sell orders are negotiated through a specialist B. Specialists can not trade for their own accounts C. Specialists earn income from commissions and spreads in stock prices D. Specialists stand ready to trade at quoted bid and ask prices 7. 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 8. Over the last 25 years, ______ outperformed the typical actively managed equity fund. A. equity index funds B. the Wilshire 5000 C. both a and b above D. none of the above 9. __________ funds stand ready to redeem or issue shares at their net asset value. A. Closed-end B. Index C. Open-end D. All of the above 10. Risk that can be eliminated through diversification is called ______ risk. A. unique B. firm-specific C. diversifiable D. all of the above 11. Adding additional risky assets will generally move the efficient frontier _____ and to the _______. A. up, right B. up, left C. down, right D. down, left
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12. The slope of a capital allocation line measures the reward-to-variability ratio of ___________. A. all portfolios on the efficient frontier B. all portfolios on the capital market line C. the minimum variance portfolio only D. all portfolios on the particular capital allocation line in question 13. The standard deviation is the ______ of the variance. A. square root B. average C. median D. square 14. The complete portfolio refers to the investment in __________. A. the risk-free asset B. the risky portfolio C. the sum of a and b D. the difference between a and b 15. The reward/variability ratio is given by __________. A. the slope of the capital allocation line B. the second derivative of the capital allocation line C. the point at which the second derivative of the investor's indifference curve reaches zero D. none of the above 16. An index fund that holds the market portfolio will need to rebalance its portfolio when _______. A. prices change
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This document was uploaded on 02/26/2008.

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2-10,12 - The Sample Final Exam Student 1 Which of the...

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