Exam1Fall09x (1) - Exam 1 Fall 2009 Fin 331 Name 1 The material wealth of society is determined by the economy's which is a function of the economy's a

Exam 1, Fall 2009, Fin 331 Name _________________________________ 1. The material wealth of society is determined by the economy's __________, which is a function of the economy's __________. a. Investment bankers, financial assets b. Investment bankers, real assets c. Productive capacity, financial assets d. Productive capacity, real assets 2. Asset allocation refers to the __________. 3. Money market securities are sometimes referred to as "cash equivalent" because 4. Which one of the following provides the best example of securitization? 5. Currently 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. Measuring the current total market value of the 30 stocks in the index relative to the total value on the previous day d. Adding the prices of 30 large "blue-chip" stocks and dividing by a divisor adjusted for stock splits and large stock dividends