投资学选择题及答案英文版(8页).doc

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1、-INVESTMENTTUTORIAL 1 SUMISSION DEADLINE: OCT 22 1. Primary market refers to the market _. A. that attempts to identify mispriced securities and arbitrage opportunities. B. in which investors trade already issued securities. C. where new issues of securities are offered. D. in which securities with

2、custom-tailored characteristics are designed.2. Asset allocation refers to the _. A. allocation of the investment portfolio across broad asset classesB. analysis of the value of securitiesC. choice of specific assets within each asset classD. none of the answers define asset allocation3. An example

3、of a derivative security is _. A. a common share of General MotorsB. a call option on Intel stockC. a Ford bondD. a U.S. Treasury bond4. Money Market securities are characterized by _.I. maturity less than one yearII. safety of the principal investmentIII. low rates of return A. I onlyB. I and II on

4、lyC. I and III onlyD. I, II and III5. _ assets generate net income to the economy and _ assets define allocation of income among investors. A. Financial, financialB. Financial, realC. Real, financialD. Real, real6. An important trend that has changed the contemporary investment market is _. A. finan

5、cial engineeringB. globalizationC. securitizationD. all three of the other answers7. Securitization refers to the creation of new securities by _. A. selling individual cash flows of a security or loanB. repackaging individual cash flows of a security or loan into a new payment patternC. taking an i

6、lliquid asset and converting it into a marketable securityD. selling financial services overseas as well as in the U.S.8. Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claims in capital markets becauseI. intermediaries are

7、better diversified than most individualsII. intermediaries can exploit economies of scale in investing that individual investors cannotIII. intermediated investments usually offer higher rates of return than direct capital market claims A. I onlyB. I and II onlyC. II and III onlyD. I, II and III9. S

8、tone Harbor Products takes out a bank loan. It receives $100,000 and signs a promissory note to pay back the loan over 5 years. A. A new financial asset was created in this transaction.B. A financial asset was traded for a real asset in this transaction.C. A financial asset was destroyed in this tra

9、nsaction.D. A real asset was created in this transaction.10. In recent years the greatest dollar amount of securitization occurred for which type loan? A. Home mortgagesB. Credit card debtC. Automobile loansD. Equipment leasing11. An investment advisor has decided to purchase gold, real estate, stoc

10、ks, and bonds in equal amounts. This decision reflects which part of the investment process? A. Asset allocationB. Investment analysisC. Portfolio analysisD. Security selection12. A dollar denominated deposit at a London bank is called _. A. eurodollarsB. LIBORC. fed fundsD. bankers acceptance13. Th

11、e German stock market is measured by which market index? A. FTSEB. Dow Jones 30C. DAXD. Nikkei14. Which one of the following is a true statement regarding the Dow Jones Industrial Average? A. It is a value-weighted average of 30 large industrial stocksB. It is a price-weighted average of 30 large in

12、dustrial stocksC. It is a price-weighted average of 100 large stocks traded on the New York Stock ExchangeD. It is a value-weighted average of all stocks traded on the New York Stock Exchange15. Preferred stock is like long-term debt in that _. A. it gives the holder voting power regarding the firms

13、 managementB. it promises to pay to its holder a fixed stream of income each yearC. the preferred dividend is a tax-deductible expense for the firmD. in the event of bankruptcy preferred stock has equal status with debt16. Three stocks have share prices of $12, $75, and $30 with total market values

14、of $400 million, $350 million and $150 million respectively. If you were to construct a price-weighted index of the three stocks what would be the index value? A. 300B. 39C. 43D. 3017. In a _ index changes in the value of the stock with the greatest market value will move the index value the most ev

15、erything else equal. A. value weighted indexB. equal weighted indexC. price weighted indexD. bond price index18. A benchmark index has three stocks priced at $23, $43, and $56. The number of outstanding shares for each is 350,000 shares, 405,000 shares, and 553,000 shares, respectively. If the marke

16、t value weighted index was 970 yesterday and the prices changed to $23, $41, and $58, what is the new index value? A. 960B. 970C. 975D. 98519. Under firm commitment underwriting the _ assumes the full risk that the shares cannot be sold to the public at the stipulated offering price. A. red herringB

17、. issuing companyC. initial stockholderD. underwriter20. Barnegat Light sold 200,000 shares in an initial public offering. The underwriters explicit fees were $90,000. The offering price for the shares was $35, but immediately upon issue, the share price jumped to $43. What is the best estimate of t

18、he total cost to Barnegat Light of the equity issue? A. $90,000B. $1,290,000C. $2,390,000D. $1,690,00021. Which one of the following statements about IPOs is not true? A. IPOs generally underperform in the short run.B. IPOs often provide very good initial returns to investors.C. IPOs generally provi

19、de superior long-term performance as compared to other stocks.D. Shares in IPOs are often primarily allocated to institutional investors.22. The NYSE recently acquired the ECN _ and NASDAQ recently acquired the ECN _. A. Archipelago; InstinetB. Instinet; ArchipelagoC. Island; InstinetD. LSE; Euronex

20、t23. Which one of the following is not an example of a brokered market? A. Residential real estate marketB. Market for large block security transactionsC. Primary market for securitiesD. NASDAQ 24. An order to buy or sell a security at the current price is a _. A. limit orderB. market orderC. stop l

21、oss orderD. stop buy order25. 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-lossB. market; limitC. stop-loss; stop-buyD. limi

22、t; market26. On a given day a stock dealer maintains a bid price of $1000.50 for a bond and an ask price of $1003.25. The dealer made 10 trades which totaled 500 bonds traded that day. What was the dealers gross trading profit for this security? A. $1,375B. $500C. $275D. $1,45027. The bulk of most i

23、nitial public offerings (IPOs) of equity securities go to _. A. institutional investorsB. individual investorsC. the firms current shareholdersD. day traders28. The _ price is the price at which a dealer is willing to purchase a security. A. bidB. askC. clearingD. settlement29. The bid-ask spread ex

24、ists because of _. A. market inefficienciesB. discontinuities in the marketsC. the need for dealers to cover expenses and make a profitD. lack of trading in thin markets30. Both the NYSE and Nasdaq have lost market share to ECNs in recent years. Part of Nasdaqs response to the growth of ECNs has bee

25、n to _.I. Purchase Instinet, a major ECNII. Enable automatic trade execution through its new Market CenterIII. Switch from stock ownership to mutual ownership A. I onlyB. II and III onlyC. I and II onlyD. I, II and III31. You purchased XYZ stock at $50 per share. The stock is currently selling at $6

26、5. Your gains could be protected by placing a _. A. limit-buy orderB. limit-sell orderC. market orderD. stop-loss order 32. You find that the bid and ask prices for a stock are $10.25 and $10.30 respectively. If you purchase or sell the stock you must pay a flat commission of $25. If you buy 100 sha

27、res of the stock and immediately sell them, what is your total implied and actual transaction cost in dollars? A. $50B. $25C. $30D. $5533. Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If the initial margin is 60%, the amount you borrowed from the b

28、roker is _. A. $20,000B. $12,000C. $8,000D. $15,00034. You short-sell 200 shares of Tuckerton Trading Co., now selling for $50 per share. What is your maximum possible gain ignoring transactions cost? A. $50B. $150C. $10,000D. unlimited35. You short-sell 200 shares of Rock Creek Fly Fishing Co., now

29、 selling for $50 per share. If you wish to limit your loss to $2,500, you should place a stop-buy order at _. A. $37.50B. $62.50C. $56.25D. $59.7536. You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance margin is 30%. You will

30、get a margin call if the stock drops below _. (Assume the stock pays no dividends and ignore interest on the margin loan.) A. $26.55B. $35.71C. $28.95D. $30.7737. You purchased 250 shares of common stock on margin for $25 per share. The initial margin is 65% and the stock pays no dividend. Your rate

31、 of return would be _ if you sell the stock at $32 per share. Ignore interest on margin. A. 35%B. 39%C. 43%D. 28% 38. Which one of the following invests in a portfolio that is fixed for the life of the fund? A. Mutual fundB. Money market fundC. Managed investment companyD. Unit investment trust39. A

32、 _ is a private investment pool open only to wealthy or institutional investors that is exempt from SEC regulation and can therefore pursue more speculative policies than mutual funds. A. commingled poolB. unit trustC. hedge fundD. money market fund40. A contingent deferred sales charge is commonly

33、called a _. A. front-end loadB. back-end loadC. 12b-1 chargeD. top end sales commission41. Assume that you have just purchased some shares in an investment company reporting $500 million in assets, $50 million in liabilities, and 50 million shares outstanding. What is the Net Asset Value (NAV) of th

34、ese shares? A. $12.00B. $9.00C. $10.00D. $1.00 42. The Vanguard 500 Index Fund tracks the performance of the S&P 500. To do so the fund buys shares in each S&P 500 company _. A. in proportion to the market value weight of the firms equity in the S&P500B. in proportion to the price weight of the stoc

35、k in the S&P500C. by purchasing an equal number of shares of each stock in the S&P 500D. by purchasing an equal dollar amount of shares of each stock in the S&P50043.Investors who wish to liquidate their holdings in a closed-end fund may _. A. sell their shares back to the fund at a discount if they

36、 wishB. sell their shares back to the fund at net asset valueC. sell their shares on the open marketD. sell their shares at a premium to net asset value if they wish44. _ funds stand ready to redeem or issue shares at their net asset value. A. Closed-endB. IndexC. Open-endD. Hedge45. Consider a mutu

37、al fund with $300 million in assets at the start of the year, and 12 million shares outstanding. If the gross return on assets is 18% and the total expense ratio is 2% of the year end value, what is the rate of return on the fund? A. 15.64%B. 16.00%C. 17.25%D. 17.50% 46. A/an _ is an example of an e

38、xchange-traded fund. A. SPDR or spiderB. samuraiC. VanguardD. open-end fund47. The Wildwood Fund sells Class A shares with a front-end load of 5% and Class B Shares with a 12b-1 fees of 1% annually. If you plan to sell the fund after 4 years, are Class A or Class B shares the better choice? Assume a

39、 10% annual return net of expenses. A. Class AB. Class BC. There is no difference.D. There is insufficient information given.48. Advantages of ETFs over mutual funds include all but which one of the following? A. ETFs trade continuously so investors can trade throughout the dayB. ETFs can be sold sh

40、ort or purchased on margin, unlike fund sharesC. ETF providers do not have to sell holdings to fund redemptionsD. ETF values can diverge from NAV49. A mutual fund has $50 million in assets at the beginning of the year and 1 million shares outstanding throughout the year. Throughout the year assets g

41、row at 12%. The fund imposes a 12b-1 fee on all shares equal to 1%. The fee is imposed on year end asset values. If there are no distributions what is the end of year NAV for the fund? A. $50.00B. $55.44C. $56.12D. $54.55 50. You pay $21,600 to the Laramie Fund which has a NAV of $18.00 per share at

42、 the beginning of the year. The fund deducted a front-end load of 4%. The securities in the fund increased in value by 10% during the year. The funds expense ratio is 1.3% and is deducted from year end asset values. What is your rate of return on the fund if you sell your shares at the end of the year? A. 4.35%B. 4.23%C. 6.45%D. 5.63% -第 8 页-