FINC 340- MID-TERM EXAMINATION
A- MULTIPLE CHOICE - Answer any 55 of the following (55 points -1 point each)
1- An exchange traded fund that invests in the stocks of large corporations is an example of
A) direct investment.
B) indirect investment.
1. In your opinion, what is the importance of portfolio revision and the role of common types of
formula plans in timing purchase and sale decisions. Are you applying it in your own
Portfolio revision is a necessary part of portfolio ma
What is your opinion on the risk and return behavior of various put and call investment strategies and
the factors that drive option prices?
Options give investors a flexible ways for buying or selling contracts based on the behavior of an
Please comment on the statement: Preferred stock has a prior claim on income and assets (in
bankruptcy) of the issuing firm. It also may have a variety of special features. Give examples to
substantiate the comments. In your opinion, are annuities good ta
Discussion # 5 (based on concepts covered in assigned reading of Week 5)
1. In your opinion, why do we need to invest in bonds? What are the many types of bonds currently
available and the wide array of investment objectives they can fulfill? What are the
Week 4 Discussion
1-What is your opinion on the role that a companys future prospects play in the stock valuation process? What is the
framework for developing such forecasts? Please provide an example of the company.
I believe a companys future prospects
Discussion 2- In the Light of the Concepts covered in assigned reading for week 2, LETS
1- In your opinion, how would you explain the concept of risk and the risk-return tradeoff? What happens to the
required return as risk increases? Substantiat
FINC 340- FINAL EXAM (100 POINTS)
From-Week 5 thru Week 8
(required and recommended Reading)
A- TRUE/FALSE-ANSWER ANY 21 OF THE FOLLOWING (21points- 1point each)
1- A portfolio that offers the lowest risk for a given level of return is known as an efficie