1) an analyst starts by examining the broad economic environment and then considers
the implications of the economy on the industry in which the firm operates. finally, the
firm’s position within the industry is examined. this is called __________ analysis.
a.bottom-up
b.outside-inside
c.top-down
d.upside-down
2) the term investment horizon refers to __________.
a.the proportion of short-term to long-term investments held in an investor’s portfolio
b.the planned liquidation date of an investment
c.the average maturity date of investments held in a portfolio
d.the maturity date of the longest investment in the portfolio
3) __________ fund is defined as one in which the fund charges a sales commission to
either buy into or exit from the fund.
a.a load
b.a no-load
c.an index
d.a specialized-sector
4) if the coupon rate on a bond is 4.5% and the bond is selling at a premium, which of
the following is the most likely yield to maturity on the bond?
a.4.3%
b.4.5%
c.5.2%
d.5.5%
5) the buyer of a new home is quoted a mortgage rate of .5% per month. what is the apr
on the loan?
a..50%
b.5%
c.6%
d.6.5%
6) the u.k. stock index is the _________.
a.dax
b.ftse
c.gse
d.tse
7) if the u.s. capital markets are not informationally efficient, ______.
a.the markets cannot be allocationally efficient
b.systematic risk does not matter
c.no type of analysis can be used to generate abnormal returns
d.returns must follow a random walk
8) a bond has a 5% coupon rate. the coupon is paid semiannually, and the last coupon
was paid 35 days ago. if the bond has a par value of $1,000, what is the accrued
interest?
a.$4.81
b.$14.24
c.$25
d.$50
9) a study by spivack and kotlikoff (1981) showed that a marriage contract increases the
dollar value of lifetime savings by as much as _____.
a.5%
b.10%
c.25%
d.50%
10)
refer to the figure above. assuming this market is representative of the economy as a
whole, this economy:
a.is highly susceptible to inflation.
b.faces fluctuating output levels whenever there is a demand shock.
c.is capable of always producing at its optimal capacity.
d.is largely immune to business cycles.