Practice Final Exam frmSp09

Practice Final Exam frmSp09 - The iollowing data appiy to...

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The iollowing data appiy to questions 19-21. Below are key data on five of the 9 cells in the Morningstar 3X3 gnd- jumbled of course- Below identify which of the five cells fit the specified caregory. Select the best cell, A-E, from the table above. 19. The Smail Value pcrfolio is most likely to be: a.A b.B €)c d.D e.E 20. The Large Growth portrolio is most Likely to be: a-A b.B c.C @o e.E The Mid Blend portfolio is most likely to be: @n b.B c.C d.D e.E $: 21. 17 .s I 16.1 I 19.3 i 16-3 6.243 I 34,0s8 1,008 133,s59
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The followlng data appt_v to questions ?9-30. Five nort'olios, A-E. have the icllcn.ing data- A D D C D E Beu 1.45 0.95 i I 145 0.95 R2 90 95 r00 80 100 29. Which is likely to have the sreatest total risk (Sigma)? ^A d,- /1 b.ts c.C @o e.E 30. Which is likely to have the least total risk (Sigma)? a.A b.B c.C d.D /a G) r' 3 l. Which of the follorying is trte? a. Load frrnds are bought by investors directly from the firnd company. b. a01ft)s are employee-sponsored and [RA.s are employer-sponsored. c. Class A shares are No Load funds. d. Invesknents in the "lnvestment" Vehicle (as opposed to the "Retirement" Vehicle) are permitted tax advar,tages. @ "Breaq points" are a mechanism for reducing the front-end load for A shares for larger amounts invested. 32- Of the following statements, seiect the one which describes Warren Buffet's practice of diversification- Warren Buffet: a- Practices diversification because it gives him the maximum return for a given risk: b. Practices diversification because it gives him the minimum risk. c. Does not practice diversification because he wants to reduce risk. d. Does not practice diversification because he is not averse to risk. @ Oort not practice diversification because he believes he ca:r increase his relurn by making concenbated invesblents.
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fi The ibilou,'ing applies to questions -59-60. The yield on a standard (nomrnal) 10-"'ear Treasun' rs 5or'o (iN;f%) The f.ield on a 10- vear TlPS is i'z'. (iR:--:9t). j9. If iN increases to 7?'o arLd iR rernains ar l%n. uhich oithe fcllo*'ing is tree'l Price Chanees Treasuri, a. decrease @ d-.t.u. . TiPS decrease renlaln constant c. remaln constant decrease d. rernain constant remain constant e. remain constant increase 60. Which of the follorving statements is ftlse? @ ttre expected rate of inflation over the next fu'o years is 2% b. if the actual rate of inflation over the next lrvo years is greater tiran the expected rate of inflation over the next hvo years, the TIPS wiil outperform tire nominal bond. c. if the expected rate of inflation increases by l':zt, and the yield on nominal Treasuries increases by 79'o. the yield on TIPS'"viil ren-rain constant. d. if the expected rate of inflation increases by l% and the yield on nominal Treasuries remains constant, the yreld on TIPS rviil decrease b1' 1o% e. all of the above are true. . 61 .
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This note was uploaded on 09/08/2010 for the course BUS 172B at San Jose State University .

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Practice Final Exam frmSp09 - The iollowing data appiy to...

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