1) the yield on tax-exempt bonds is ______.
a.usually less than 50% of the yield on taxable bonds
b.normally about 90% of the yield on taxable bonds
c.greater than the yield on taxable bonds
d.less than the yield on taxable bonds
2) no taxes are paid on withdrawals made during retirement from a _________.
a.traditional retirement plan
b.roth retirement plan
c.401k
d.403b plan
3) standard deviation of portfolio returns is a measure of ___________.
a.total risk
b.relative systematic risk
c.relative nonsystematic risk
d.relative business risk
4) if an investor places a _________ order, the stock will be sold if its price falls to the
stipulated level. if an investor places a __________ order, the stock will be bought if its
price rises above the stipulated level.
a.stop-buy; stop-loss
b.market; limit
c.stop-loss; stop-buy
d.limit; market
5)
the trin on day 2 is ___.
a..72
b.1.04
c..92
d..55
6) more than _____________ of currency is traded each day in the market for foreign
exchange.
a.$300 million
b.$1 billion
c.$30 billion
d.$1 trillion
7) the most widely used monetary policy tool is _________.
a.altering the discount rate
b.altering reserve requirements
c.open market operations
d.increasing the budget deficit
8) the _________ reward-to-variability ratio is found on the ________ capital market
line.
a.lowest; steepest
b.highest; flattest
c.highest; steepest
d.lowest; flattest
9) in technical analysis, __________ is a value below which the market is relatively
unlikely to fall.
a.book value
b.resistance level
c.support level
d.the dow line
10) which one of the following is a life insurance policy that will provide a fixed death
benefit and allows the policyholder to choose where to invest the policy’s cash value?
a.term life
b.whole life
c.variable life
d.industrial life
11) a firm has a lower inventory turnover, a longer acp, and a lower fixed-asset turnover
than the industry averages. you should not be surprised to find that this firm has:
i. lower ato than the industry average
ii. lower roa than the industry average
iii. lower roe than the industry average
a.i only
b.i and ii only
c.ii and iii only
d.i, ii, and iii
12) the german stock market is measured by which market index?
a.ftse
b.dow jones 30
c.dax
d.nikkei
13) consider a treasury bill with a rate of return of 5% and the following risky
securities:
security a: e(r) = .15; variance = .0400
security b: e(r) = .10; variance = .0225
security c: e(r) = .12; variance = .1000
security d: e(r) = .13; variance = .0625
the investor must develop a complete portfolio by combining the risk-free asset with
one of the securities mentioned above. the security the investor should choose as part of
her complete portfolio to achieve the best cal would be _________.
a.security a
b.security b
c.security c
d.security d