{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Sample Questions MC

Sample Questions MC - SAMPLE QUESTIONS FOR EXAM#1(answers...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
SAMPLE QUESTIONS FOR EXAM #1 (answers are on the right hand side) 1. Money market funds a a. Have neither a sales charge or a redemption charge. b. Are closed-end investment companies. c. By law can hold only taxable securities. d. Do not charge their investors a management fee. 2. The standard deviation of the annual rate of return on large common stocks for the period 1920-2004 is about 3. Given a geometric mean return on large common stocks over the period 1920-2004 of 10%, the ending wealth index, starting with $1, will be approximately d 4. With regard to bond ratings, which of the following statements is INCORRECT ? b 5. Risk is defined as the chance that the d a. expected return will not equal the historical return. b. actual return will differ from the realized return. c. expected return will equal the actual return. d. actual return will differ from the expected return 6. Ex post (after the fact), the return-risk tradeoff available to investors d 7. Choose the INCORRECT statement. The initial margin is a
Background image of page 1

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

View Full Document Right Arrow Icon
8. The TR for a stock purchased at $50, sold at $60 one year later, with $1 collected in dividends during the year, is c 9. The common stockholder d a. is guaranteed a specified dividend return b. is senior to (that is, ranks above) debt holders in terms of payment c. takes relatively small risk in any given year d. can best be described as the residual claimant
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}