Market order question 7 2 out of 2 points is the

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market order Question 7 2 out of 2 points _______________ ____ is the maximum purchase price or minimum selling price specified by
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an investor. Answer Selected Answer: A limit order Correct Answer: A limit order Question 8 2 out of 2 points Newly created securities are sold in the: Answer Selected Answer: primary market Correct Answer: primary market Question 9 0 out of 2 points An agreement whereby an investment banker tries to sell securities of an issuing corporation, but assumes no risk if the flotation is unsuccessful is called a: Answer Selected Answer: shelf registration agreement Correct
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Answer: best-effort agreement Question 10 2 out of 2 points If an investor feels the price of a stock will decline in the future, which trade should the investor undertake? Answer Selected Answer: short sale Correct Answer: short sale Question 11 0 out of 2 points Variations in operating income over time because of variations in unit sales, price, cost margins, and/or fixed expenses are called: Answer Selected Answer: financial risk Correct Answer: business risk Question 12 0 out of 2 points
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The total risk of a well-diversified portfolio of U.S. stocks appears to be about what proportion of the risk of an average one-stock portfolio? Answer Selected Answer: two- thirds Correct Answer: one-half Question 13 0 out of 2 points The relevant measure of risk for a diversified portfolio of assets is the portfolio’s level of: Answer Selected Answer: diversifiable risk Correct Answer: systematic risk Question 14 2 out of 2 points The market portfolio would have a beta of: Answer Selected Answer: 1
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Correct Answer: 1 Question 15 2 out of 2 points As defined in accordance with efficient markets notions, a weak- form efficient market would be a market in which asset prices reflect all: Answer Selected Answer: past information Correct Answer: past information Question 16 0 out of 2 points Variations in a firm’s tax rate and tax-related charges over time due to changing tax laws and regulations is called: Answer Selected Answer: interest rate risk Correct Answer: tax risk Question 17 0 out of 2 points
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The risk cause by variations in interest expense unrelated to sales or operating income arising from changes in the level of interest rates in the economy is called: Answer Selected Answer: business risk Correct Answer: interest rate risk Question 18 2 out of 2 points Portfolio risk is comprised of: Answer Selected Answer: systematic and unsystematic risk Correct Answer: systematic and unsystematic risk Question 19 0 out of 2 points As defined in accordance with efficient markets notions, a strong- form efficient market would be a market in which asset prices reflect all:
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Answer Selected Answer: current information Correct Answer: public and private information Question 20 0 out of 2 points In comparing the deviations of returns, which one of the following assets has historically had the largest standard deviation of annual returns? Answer Selected Answer: U.S. Treasury bills Correct Answer: large company stocks
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