Midterm+Exam

Midterm+Exam - Investment Management Fall 2011 Name_ 1. _...

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Investment Management Fall 2011 Name__________________ 1. _________ financial asset(s). A. Land is a B. Derivatives are C. U.S. Agency bonds are D. Derivatives and U.S. Agency bonds are 2. Money market securities ____________. A. are highly marketable B. are generally very low risk C. are short term, highly marketable, and generally very low risk D. highly marketable and generally very low risk 3. An example of a derivative security is/are ______. A. an Intel bond B. a commodity futures contract and a call option on Intel stock C. a call option on Intel stock and an Intel bond D. a common share of Intel stock 4. The Sarbanes-Oxley Act ____________. A. requires the firm's CFO to personally vouch for the firm's accounting statements B. prohibits auditing firms from providing other services to clients C. requires corporations to have more independent directors and requires the firm's CFO to personally vouch for the firm's accounting statements D. requires corporations to have more independent directors and requires the firm's CFO to personally vouch for the firm's accounting statements, prohibits auditing firms from providing other services to clients. 5. You sold a futures contract on oats at a futures price of 233.75 and at the time of expiration the price was 261.25. There are 5,000 bushels per contract and prices are quoted in cents per bushel. What was your profit or loss? A. $1375.00 B. -$1375.00 C. -$27.50 D. $27.50
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6. Treasury Inflation-Protected Securities (TIPS) A. pay a fixed interest rate for life. B. provide a constant stream of income in real (inflation-adjusted) dollars. C. have their principal adjusted in proportion to the Consumer Price Index. D. provide a constant stream of income in real (inflation-adjusted) dollars and D have their principal adjusted in proportion to the Consumer Price Index. 7. Which one of the following is not a money market instrument? A. A Treasury bill D. Commercial paper C. A Treasury bond E. A Eurodollar account 8.The bid price of a T-bill in the secondary market is A. the price at which the dealer in T-bills is willing to sell the bill. B. the price at which the dealer in T-bills is willing to buy the bill. C. greater than the asked price of the T-bill. D.
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Midterm+Exam - Investment Management Fall 2011 Name_ 1. _...

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