PracMT - Financial Economics 4751 Nick Guo University of...

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1 Financial Economics 4751 University of Minnesota Nick Guo Fall 2009 Practice Midterm Exam There are 8 questions in this midterm. Show all your work and label the graph carefully. 1. (5’) According to data, in 2007, what was the most significant real asset of U.S. households in terms of total value? What was the most significant liability of U.S. households in terms of total value? What was the most significant real asset of U.S. nonfinancial businesses in terms of total value? What was the most significant liability of U.S. nonfinancial businesses? What was the most significant financial asset of U.S. nonfinancial businesses in terms of total value? 2. (10’) Consider the following three stocks: A) What’s the price-weighted index constructed with the three stocks? B) What’s the value-weighted index constructed with the three stocks using a divisor of 100? C) Assume at these prices the value-weighted index constructed with the three stocks is 49. What would the index be if stock B is split 2 for 1 and stock C 4 for 1?
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This note was uploaded on 02/17/2011 for the course ECON 4751 taught by Professor None during the Spring '11 term at Algoma University.

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PracMT - Financial Economics 4751 Nick Guo University of...

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