FIN 320 week 11 final exam part 1

 

• Question 1

 

Financial institutions that specialize in assisting corporations in primary market transactions are called _______.

 

• Question 2

 

Which of the following is not an example of a financial intermediary?

 

 

• Question 3

 

The 2002 law designed to improve corporate governance is titled the _____.

 

• Question 4

 

A __________ gives its holder the right to sell an asset for a specified exercise price on or before a specified expiration date.

 

• Question 5

 

Eurodollars are _________.

 

• Question 6

Ownership of a put option entitles the owner to the __________ to ___________ a specific stock, on or before a specific date, at a specific price.

 

• Question 7

 

The __________ was established to protect investors from losses if their brokerage firms fail.

 

• Question 8

 

Maintenance requirements for margin accounts are set by ____.

 

• Question 9

 

Which of the following funds is most likely to have a debt ratio of 70% or higher?

 

• Question 10

 

A fund that invests in securities worldwide, including the United States, is called ______.

 

• Question 11

 

Net asset value is defined as ________________________.

 

• Question 12

 

From 1926 to 2010 the world stock portfolio offered _____ return and _____ volatility than the portfolio of large U.S. stocks.

 

• Question 13

 

Historically, the best asset for the long-term investor wanting to fend off the threats of inflation and taxes while making his money grow has been ____.

 

• Question 14

 

Which of the following correlation coefficients will produce the least diversification benefit?

 

• Question 15

 

Market risk is also called __________ and _________.

 

• Question 16

 

In a single-factor market model the beta of a stock ________.

 

• Question 17

 

The measure of risk used in the capital asset pricing model is ___________.

 

• Question 18

 

Standard deviation of portfolio returns is a measure of ___________.

 

• Question 19

 

Proponents of the EMH typically advocate __________.

 

• Question 20

 

Choosing stocks by searching for predictable patterns in stock prices is called ________.

 

• Question 21

 

When the stock price falls below a moving average, a possible conclusion is that _____.

 

• Question 22

 

 

Models of financial markets that emphasize psychological factors affecting investor behavior are called _______.

 

• Question 23

 

Relative strength is ______ indicator.

 

• Question 24

 

Consider the liquidity preference theory of the term structure of interest rates. On average, one would expect investors to require _________.

 

• Question 25

 

Yields on municipal bonds are typically ___________ yields on corporate bonds of similar risk and time to maturity.

 

FIN 320 week 11 final exam part 2

• Question 1

 

Which one of the following is probably the most direct and immediate way to stimulate or slow the economy, although it is not very useful for fine-tuning economic performance?

 

• Question 2

 

______________ in interest rates are associated with stock market declines.

 

• Question 3

 

The ratio of the purchasing power of two economies is termed the _______.

 

• Question 4

 

Stockholders of Dogs R Us Pet Supply expect a 12% rate of return on their stock. Management has consistently been generating an ROE of 15% over the last 5 years but now believes that ROE will be 12% for the next 5 years. Given this, the firm's optimal dividend payout ratio is now ______.

 

• Question 5

 

Firm A is high-risk, and Firm B is low-risk. Everything else equal, which firm would you expect to have a higher P/E ratio?

 

• Question 6

 

When assessing the sustainability of a firm's cash flows, analysts will prefer to see cash growth generated from which of the following sources?

 

• Question 7

 

Another term for EVA is ______.

 

• Question 8

 

Which of the following transactions will result in a decrease in cash flow from operations?

 

• Question 9

 

An option with a payoff that depends on the average price of the underlying asset during at least some portion of the life of the option is called ______ option.

 

• Question 10

 

The initial maturities of most exchange-traded options are generally __________.

 

• Question 11

 

Which one of the following exploits differences between actual future prices and their theoretically correct parity values?

 

• Question 12

 

The daily settlement of obligations on futures positions is called _____________.

 

• Question 13

 

In the futures market the short position's loss is ___________ the long position's gain.

 

• Question 14

 

In the Treynor-Black model, the weight of each analyzed security in the portfolio should be proportional to its __________.

 

• Question 15

 

In the Treynor-Black model, the active portfolio will contain stocks with __________.

 

• Question 16

 

Which emerging country had the highest percentage growth in market capitalization during the 2000-2011 period?

 

• Question 17

 

Which one of the following allows you to purchase the stock of a specific foreign company?

 

• Question 18

 

According to a model that was estimated using monthly excess returns from January 2005 through November 2011, average returns of equity hedge funds are __________ the S&P 500 Index.

 

• Question 19

 

Higher returns of equity hedge funds as compared to the S&P 500 Index reflect positive compensation for __________ risk.

 

• Question 20

 

Currently, the maximum combined taxable income of a retired household that avoids having to pay any taxes on a portion of their Social Security benefit is ______.

• Question 21

 

Social Security is ____________.

 

• Question 22

 

Tax shelters __________________.

 

• Question 23

 

An active asset allocation strategy involves _________.

 

• Question 24

 

A portfolio manager indexes part of a portfolio and actively manages the rest of the portfolio. This is called a _________ strategy.

 

• Question 25

 

Price volatility is greatest on which one of the following investments?

 

 

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Status NEW Posted 11 Jan 2019 11:01 PM My Price 18.00

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