exercise1 - A) a fixed stream of income B) a stream of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 1 and Chapter 2 Problems: From textbooks 1, P23 #1 2, P23 #4 3, P55 #1 4, P55 #6 Additional multiple choice questions: 1. Asset allocation refers to the __________. A) allocation of the investment portfolio across broad asset classes B) analysis of the value of securities C) choice of specific assets within each asset class D) none of the above 2. Security selection refers to the ____ A) allocation of the investment portfolio across broad asset classes B) analysis of the value of securities C) choice of specific securities within each asset class D) none of the above 3.__________ portfolio management calls for holding diversified portfolios without spending effort or resources attempting to improve investment performance through security analysis. A) Active B) Idiotic C) Passive D) none of the above
Background image of page 1

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

View Full DocumentRight Arrow Icon
4. Fixed-income securities promise __________.
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: A) a fixed stream of income B) a stream of income that is determined according to a specific formula C) either a or b D) neither a nor b 5. Deposits of commercial banks at the Federal Reserve are called ______. A) bankers acceptances B) federal funds C) repurchase agreements D) time deposits 6. The Dow Jones Industrial Average is computed by __________. A) adding the prices of 30 large "blue-chip" stocks and dividing by 30 B) calculating the total market value of the 30 firms in the index and dividing by 30 C) adding the prices of the 30 stocks in the index and dividing by a divisor D) adding the prices of the 500 stocks in the index and dividing by a divisor 7. The Standard and Poors 500 is a(n) __________ weighted index. A) equally B) price C) value D) none of the above...
View Full Document

This note was uploaded on 05/10/2008 for the course FIN 367 taught by Professor Han during the Spring '08 term at University of Texas at Austin.

Page1 / 2

exercise1 - A) a fixed stream of income B) a stream of...

This preview shows document pages 1 - 2. Sign up to view the full document.

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