Finc 3640-First Exam
Fall 2009
M ASTER
Name
Score
I. Multiple choice from the book (60 points)
1. Which of the following is not a money market security?
a. US. Treasury bill
b. Six month maturity certicate of deposit
9. Common stock
d. Bankers acceptance
Chapter 12: Macroeconomic and Industry Analysis
Key Economic Variables
One must forecast the macroeconomy better than ones competitors to earn
abnormal profits.
Lets review some key economic statistics.
Gross dome
CHAPTER 1:
Investments- Reduce current consumption in hopes of greater future
consumption.
Real assets- Used to produce goods and services: Property, plant & equipment,
human capital, etc. Something you can touch
Fin
FINC 3640-003
September 27, 2012
Stock-Trak Summary 1
1. The Holding period return for my portfolio is .72%. I started with $1,000,000 and
my current portfolio value is $1,007,164.64. I have purchased multiple stocks,
but I have yet to sell anything. I am
FINC 3640
Auburn
Chapter 3
1
Stock Brokers
An agent that charges a fee or commission for executing buy and sell orders submitted by an
investor, or The firm that acts as an agent for a customer, charging the customer a
commission for its services.
2
Churn
M445 rye
Finc 3640-Second Exam
Fall 2014
Name
Score
I. Multiple Choice ( 50 points)
1. During the past two weeks, the market has been best characterized by:
a. High returns
b. Low returns
Gd High volatility
d.All of the above
2. Russia and other OPEC coun
FINC 3640-First Exam
Fall 2015
Name HIM 5117/1?
Score
I. Multiple Choice (60 points)
1. The Chairman of the Federal Reserve Bank is
3. Timothy Geithner
b. Larry Summers
c. Hank Paulson
.Janel Yellen
2. A futures price is
a. A price for exchange of assets
Investments3640
SecondExam,Fall2008
Name_
Score_
MultipleChoice(60points) The values of beta coefficients of securities are _.
a. Always positive
b. Always negative
c. Always between positive 1 and negative 1
D. Usually positive, but are not restricted in
Finance 3640,Investments
Second Exam, Spring 2011
Name_
Score_
I. Multiple Choice (60 points)
Questions 1-4 are from the timely topics class discussion
1. The name of the current Libyan dictator is
a) Benjamin Netanyahu
b) Muammar Gaddafi
c) Bashar al-Ass
Finc3640FirstExam
Fall2011
Name_
Score_
I.MultipleChoice(40points)
1. TheChairmanoftheFederalReserveBankis
a. TimothyGeithner
b. LarrySummers
c. HankPaulson
d. BenBernake
2. Afuturespriceis
a. Apriceforexchangeofassetstobedeterminedinthefuture
b. Apriceto
Finc 3640-Second Exam
Fall 2014
Name
Score
Multiple choice (60 points)
1. The Presidents nomination to lead the Federal Reserve Bank is:
a. Ben Bernake
(E? Janel Yellen
c. Henry Paulson
d. Alan Greenspan
2. An important risk if the debt limit is not rai
W
Finc 3640-First Exam
Name m HSTPR Spring 2014 w W a
Score i @Q
I. Multiple Choice (50 points)
1. The Chairman of the Federal Reserve Bank is
a. Timothy Geithner
Larry Summers
@ Janet Yellen
Ben Bernake
2. A futures price is
a. A price for exchange of
Finc 3640-Second Exam
Spring 2015
Name Illa; Ik
Score
I. Multiple choice (50 points)
1. The recent fall in energy prices
a. Has been bad for energy producing companies
b. Has been good for the real economic economy
C. Is primarily due to the decrease in t
is [3;
r 81, 12 l
Finc 3640First Exam / ,7 *3
. I 2 1
Namem Fal 0 3
Score
l. Multiple Choice (40 points)
1. Tapering refers to:
a. Decreasing the proportion to equity to cash investments as you near retirement
b. The decrease in maintenance margin requir
Part I:
1. a. Stock Return 10%, Bond Return 5%
Stock Standard Deviation 18.63, Bond Standard Deviation 8.27
b. While the stock fund provides a better-expected return at 10%, the bond fund
offers 5% with less risk.
Chapter 7 (Capital Asset Pricing and Arbitrage Pricing Theory)
Capital Asset Pricing Model (CAPM)- A model that relates the RR for a security to
its risk as measured by beta.
It was developed by Treynor, Sharpe,
Prof. Khaled Amira
Finc 3640
Spring 2016
PRACTICE EXAM 2
I gave more problems from the book in addition to the problems here. The final will be shorter
I. Multiple Choice Questions
The yield to maturity on a bond is _
a) below the coupon rate when the bon
Prof. Khaled Amira
BusAdm 415-investment Finance
Spring 2013
PRACTICE FINAL EXAM
I gave more problems from the book in addition to the problems here. The final will be shorter
I. Multiple Choice Questions
1. _is equal to (common shareholders' equity/commo
Finc3640FirstExam
Spring2010
Name_
Score_
I.MultipleChoice(60points)
1.Real assets in the economy include all but which one of the following?
a. Land
b. Buildings
c. Knowledge
D. Common stock
2. _ is not a derivative security.
A. A share of common stock
b
FINC 3640
Auburn
Chapter 4
1
Deflation
a decrease in the general level of prices of goods and services. Deflation occurs when there
is a negative inflation rate (below 0%)
2
Time Value Of Money
A dollar today is worth more than a future dollar
3
Future Va
FINC 3640
Auburn
Chapter 5
1
Purchasing Power Risk
The chance that changing price levels (inflation and deflation) will adversely affect
investment returns
2
Interest Rate Risk
chance that changes in interest rates will adversely affect a security's value
FINC 3640
Auburn
Chapter 6
1
Book Value
An accounting measure of stockholders equity in the firm.
2
Dividends
a partial return of the firms profits to stockholders.
3
Declaration Date
the date when companies announce their next dividend
4
Record Date
comp
FINC 3640
Auburn
Chapter 7
1
Automatic Investment Plan
Allows shareholders to automatically send money from their paycheck or bank accounts to
the mutual fund.
2
Automatic Reinvestment Plan
Capital Gains and dividends are used to buy additional shares in
FINC 3640
Auburn
Chapter 8
1
Insurance Principle
the reduction of risk to very low levels because of independent risk sources
2
co-variance
measures the extent to which the variation in the returns on the two assets tend to reinforce
or offset each other
FINC 3640
Auburn
Chapter 9
1
Where does the risk of an asset come from?
the fact that surprises occur, pushing the actual return from the expected
2
Systematic Risk
affects most or all businesses
3
Unsystematic Risk
affects few or one business
4
Principle
FINC 3640
Auburn
Chapter 10
1
Opportunity Cost
the most valuable alternative given up if a particular investment is undertaken
2
Erosion
opening a new store generates new cash flows, but many new sales may come from current
customers of other stores; this
FINC 3640
Auburn
Chapter 11
1
American Option
can be exercised anytime before expiration
2
European Option
can only be exercised on the expiration date
3
Protective Put
long position on a stock + long put
4
Covered Call
long position on a stock + short ca
FINC 3640
Auburn
Chapter 12
1
Who conducted the study on overconfidence and what were the findings?
Svenson found that 82% of a sample of US college students judge themselves to be among
the top 30% of the group in terms of driving safety
2
Overcondidence
Computing Portfolio Means and Variances
Jim Hilliard
Auburn University
Jim Hilliard Auburn University ()
Computing Portfolio Means and Variances
1/6
Computing Portfolio Means and Variances
For a portfolio with n-assets, the expected return and variance of
Problem Set 1
FINC 3640, Spring 2017
1. MCs (10 points):
1) An example of a real asset is:
I. A college education
II. Customer goodwill
III. A patent
A.
I only
B.
II only
C.
I and III only
D.
I, II, and III
2) Large well-known companies often issue their
Problem Set 2
1. In the context of the capital asset pricing model, the systematic measure of risk is captured by
_.
a. unique risk
b. beta
c. the standard deviation of returns
d. the variance of returns
2. According to the capital asset pricing model, fa
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