Fall07-Solution-Exam1 - BUS 172A Investment Analysis Fall...

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BUS 172A – Investment Analysis Fall 2007 Exam 1 Last Name: __________________________First Name: _____________________ Class Time: _________________________ Instructions: There are 14 questions . Questions 1–5 are multiple-choice questions. Questions 6–14 are problems for which computations are necessary. For each question you need to report the correct final answer in the space provided . For questions 6–14, in addition to reporting the final answer, you must also report the complete and correct solution with computations. When reporting the solutions to the questions 6-14 you must label all the amounts you use in the computations. Your computations and solutions to the questions must be clear and easy to understand. Grading: Each multiple-choice question is worth 5 points. No partial credit is granted for questions 1-5 . For the problems 6-14 you can only receive the maximum points allowed if you record the correct final answer along with the complete and correct solution for the problem. If you report the correct final answer, but you do not provide a complete and consistent solution for the problems, you will not receive any points. Partial credit is granted for questions 6–14 . 1
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Section I – Multiple Choice Questions: 5 points each question 1. If you place a stop-loss order to sell 100 shares of stock at $55 when the current price is $62, how much will you receive for each share if the price drops to $50? a. $50. b. $55. c. $62. d. $54.87. e. Cannot tell from the information given. ANSWER: ________ 2. Which of the following investment factors, strategies, or tactics is most associated with an active investment policy? a. Market timing. b. Asset allocation. c. Security selection. d. Tax status. e. Investment horizon. ANSWER: ________ 3. Specialists in the NYSE do all the following except: a. Act as a dealer for their own account. b. Execute limit orders. c. Help provide liquidity to the market place. d. Help broker “stop” a stock. e. Compete with other NYSE specialists to display a limit book on the same stock. ANSWER: ________ 4. Which of the following statements is the most correct about Exchange-Traded Funds (ETF): a. ETFs trade like shares of closed-end funds and may sell at premium/discount with respect to the NAV. b.
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This note was uploaded on 09/08/2010 for the course BUS 172A at San Jose State.

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Fall07-Solution-Exam1 - BUS 172A Investment Analysis Fall...

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