1. Financial assets represent _ of total assets of U.S. households.
A. over 60%
B. over 90%
C. under 10%
D. about 30%
2. Real assets in the economy include all but which one of the following?
C. Consumer durables
1. Which of the following is not a money market instrument?
A. Treasury bill
B. Commercial paper
C. Preferred stock
D. Bankers acceptance
2. T-bills are issued with initial maturities of:
I. 4 weeks
II. 16 weeks
III. 26 weeks
IV. 32 weeks
1. Underwriting is one of the services provided by _.
A. the SEC
B. investment bankers
C. publicly traded companies
2. Under firm-commitment underwriting, the _ assumes the full risk that the shares cannot
be sold to the public at th
1. Risk that can be eliminated through diversification is called _ risk.
D. all of these options
2. The _ decision should take precedence over the _ decision.
A. asset allocation; stock selection
1. You put up $50 at the beginning of the year for an investment. The value of the investment
grows 4% and you earn a dividend of $3.50. Your HPR was _.
2. The _ measure of returns ignores compounding.
1. Which one of the following invests in a portfolio that is fixed for the life of the fund?
A. Mutual fund
B. Money market fund
C. Managed investment company
D. Unit investment trust
2. _ are partnerships of investors with portfolios that a
1. An adjusted beta will be _ than the unadjusted beta.
C. closer to 1
D. closer to 0
2. Fama and French claim that after controlling for firm size and the ratio of the firms book
value to market value, beta is:
1. The invoice price of a bond is the _.
A. stated or flat price in a quote sheet plus accrued interest
B. stated or flat price in a quote sheet minus accrued interest
C. bid price
D. average of the bid and ask price
2. Sinking funds are co
1. Which of the following beliefs would not preclude charting as a method of portfolio
A. The market is strong-form efficient.
B. The market is semistrong-form efficient.
C. The market is weak-form efficient.
D. Stock prices foll
1. Testing many different trading rules until you find one that would have worked in the past is
A. data mining
B. perceived patterning
C. pattern searching
D. behavioral analysis
2. Models of financial markets that emphasize psych