选择题英文

INVESTMENT

TUTORIAL1

SUMISSIONDEADLINE:OCT22

ymarketreferstothemarket____________.

temptstoidentifymispricedcuritiesandarbitrageopportunities.

hinvestorstradealreadyissuedcurities.

ewissuesofcuritiesareoffered.

hcuritieswithcustom-tailoredcharacteristicsaredesigned.

llocationreferstothe_________.

tionoftheinvestmentportfolioacrossbroadastclass

isofthevalueofcurities

ofspecificastswithineachastclass

theanswersdefineastallocation

pleofaderivativecurityis_________.

nshareofGeneralMotors

ptiononIntelstock

ond

rybond

arketcuritiesarecharacterizedby________.

tylessthanoneyear

oftheprincipalinvestment

esofreturn

only

Ionly

D.I,IIandIII

5.__________astsgeneratenetincometotheeconomyand__________astsdefineallocationof

incomeamonginvestors.

ial,financial

ial,real

,financial

,real

rtanttrendthathaschangedthecontemporaryinvestmentmarketis_________.

ialengineering

ization

tization

eeoftheotheranswers

tizationreferstothecreationofnewcuritiesby_________.

gindividualcashflowsofacurityorloan

agingindividualcashflowsofacurityorloanintoanewpaymentpattern

anilliquidastandconvertingitintoamarketablecurity

gfinancialrvicesoverasaswellasintheU.S.

dualsmayfinditmoreadvantageoustopurchaclaimsfromafinancialintermediaryrather

thandirectlypurchasingclaimsincapitalmarketsbecau

ediariesarebetterdiversifiedthanmostindividuals

ediariescanexploiteconomiesofscaleininvestingthatindividualinvestorscannot

ediatedinvestmentsusuallyofferhigherratesofreturnthandirectcapitalmarketclaims

only

IIonly

D.I,IIandIII

ives$100,000andsignsapromissorynoteto

paybacktheloanover5years.

nancialastwascreatedinthistransaction.

cialastwastradedforarealastinthistransaction.

cialastwasdestroyedinthistransaction.

stwascreatedinthistransaction.

ntyearsthegreatestdollaramountofcuritizationoccurredforwhichtypeloan

rtgages

carddebt

bileloans

entleasing

stmentadvisorhasdecidedtopurchagold,realestate,stocks,andbondsinequalamounts.

Thisdecisionreflectswhichpartoftheinvestmentprocess

llocation

mentanalysis

lioanalysis

tylection

rdenominateddepositataLondonbankiscalled_____.

llars

ds

'sacceptance

manstockmarketismeasuredbywhichmarketindex

es30

neofthefollowingisatruestatementregardingtheDowJonesIndustrialAverage

alue-weightedaverageof30largeindustrialstocks

rice-weightedaverageof30largeindustrialstocks

rice-weightedaverageof100largestockstradedontheNewYorkStockExchange

alue-weightedaverageofallstockstradedontheNewYorkStockExchange

redstockislikelong-termdebtinthat___________.

stheholdervotingpowerregardingthefirm'smanagement

istopaytoitsholderafixedstreamofincomeeachyear

ferreddividendisatax-deductibleexpenforthefirm

ventofbankruptcypreferredstockhaqualstatuswithdebt

tockshavesharepricesof$12,$75,and$30withtotalmarketvaluesof$400million,$350

millionand$eretoconstructaprice-weightedindexofthethree

stockswhatwouldbetheindexvalue

A.300

B.39

C.43

D.30

___________indexchangesinthevalueofthestockwiththegreatestmarketvaluewillmove

theindexvaluethemosteverythingelequal.

eightedindex

eightedindex

eightedindex

iceindex

markindexhasthreestockspricedat$23,$43,and$berofoutstandingshares

foreachis350,000shares,405,000shares,and553,000shares,arketvalue

weightedindexwas970yesterdayandthepriceschangedto$23,$41,and$58,whatisthenewindex

value

A.960

B.970

C.975

D.985

irmcommitmentunderwritingthe______assumesthefullriskthatthesharescannotbesold

tothepublicatthestipulatedofferingprice.

ring

gcompany

lstockholder

riter

atLightsold200,erwriter'xplicitfees

were$90,eringpricefortheshareswas$35,butimmediatelyuponissue,theshareprice

jumpedto$thebestestimateofthetotalcosttoBarnegatLightoftheequityissue

A.$90,000

B.$1,290,000

C.$2,390,000

D.$1,690,000

neofthefollowingstatementsaboutIPOsisnottrue

nerallyunderperformintheshortrun.

tenprovideverygoodinitialreturnstoinvestors.

nerallyprovidesuperiorlong-termperformanceascomparedtootherstocks.

inIPOsareoftenprimarilyallocatedtoinstitutionalinvestors.

ErecentlyacquiredtheECN_______andNASDAQrecentlyacquiredtheECN________.

elago;Instinet

et;Archipelago

;Instinet

;Euronext

neofthefollowingisnotanexampleofabrokeredmarket

ntialrealestatemarket

forlargeblockcuritytransactions

ymarketforcurities

rtobuyorllacurityatthecurrentpriceisa______________.

rder

order

ssorder

yorder

vestorplacesa_________orderthestockwillbesoldifitspricefallstothestipulated

vestorplacesa__________orderthestockwillbeboughtifitspricerisabovethe

stipulatedlevel.

-buy;stop-loss

;limit

-loss;stop-buy

;market

endayastockdealermaintainsabidpriceof$forabondandanaskpriceof$.The

sthedealer'sgrosstrading

profitforthiscurity

A.$1,375

B.$500

C.$275

D.$1,450

kofmostinitialpublicofferings(IPOs)ofequitycuritiesgoto___________.

utionalinvestors

dualinvestors

m'scurrentshareholders

ders

_________priceisthepriceatwhichadealeriswillingtopurchaacurity.

ng

ment

-askspreadexistsbecauof_______________.

inefficiencies

tinuitiesinthemarkets

dfordealerstocoverexpensandmakeaprofit

tradinginthinmarkets

Nasdaq'srespon

tothegrowthofECNshasbeento_______.

Instinet,amajorECN

automatictradeexecutionthroughitsnewMarketCenter

fromstockownershiptomutualownership

IIonly

only

D.I,IIandIII

chadXYZstockat$ckiscurrentlyllingat$inscould

beprotectedbyplacinga_________.

-buyorder

-llorder

order

-lossorder

dthatthebidandaskpricesforastockare$and$urchaorll

thestockyoumustpayaflatcommissionof$uy100sharesofthestockandimmediately

llthem,whatisyourtotalimpliedandactualtransactioncostindollars

A.$50

B.$25

C.$30

D.$55

youpurchad500sharesofXYZcommonstockonmarginat$40persharefromyourbroker.

Iftheinitialmarginis60%,theamountyouborrowedfromthebrokeris_________.

A.$20,000

B.$12,000

C.$8,000

D.$15,000

rt-ll200sharesofTuckertonTradingCo.,nowllingfor$your

maximumpossiblegainignoringtransactionscost

A.$50

B.$150

C.$10,000

ted

rt-ll200sharesofRockCreekFlyFishingCo.,nowllingfor$

wishtolimityourlossto$2,500,youshouldplaceastop-buyorderat____.

A.$

B.$

C.$

D.$

chad200sharesofABCcommonstockonmarginat$theinitialmargin

is50%andthemaintenancemarginis30%.Youwillgetamargincallifthestockdropsbelow________.

(Assumethestockpaysnodividendsandignoreinterestonthemarginloan.)

A.$

B.$

C.$

D.$

chad250sharesofcommonstockonmarginfor$tialmarginis65%

teofreturnwouldbe__________ifyoullthestockat$32

interestonmargin.

A.35%

B.39%

C.43%

D.28%

neofthefollowinginvestsinaportfoliothatisfixedforthelifeofthefund

fund

arketfund

dinvestmentcompany

vestmenttrust

39.A__________isaprivateinvestmentpoolopenonlytowealthyorinstitutionalinvestorsthat

ixemptfromSECregulationandcanthereforepursuemorespeculativepoliciesthanmutualfunds.

gledpool

ust

und

arketfund

ngentdeferredsaleschargeiscommonlycalleda____.

-endload

-endload

C.12b-1charge

salescommission

thatyouhavejustpurchadsomesharesinaninvestmentcompanyreporting$500million

inasts,$50millioninliabilities,theNetAstValue

(NAV)oftheshares

A.$

B.$

C.$

D.$

guard500IndexFundtrackstheperformanceoftheS&thefundbuysshares

ineachS&P500company__________.

ortiontothemarketvalueweightofthefirm'quityintheS&P500

ortiontothepriceweightofthestockintheS&P500

hasinganequalnumberofsharesofeachstockintheS&P500

hasinganequaldollaramountofsharesofeachstockintheS&P500

whowishtoliquidatetheirholdingsinaclod-endfundmay___________________.

eirsharesbacktothefundatadiscountiftheywish

eirsharesbacktothefundatnetastvalue

eirsharesontheopenmarket

eirsharesatapremiumtonetastvalueiftheywish

44.__________fundsstandreadytoredeemorissuesharesattheirnetastvalue.

-end

-end

eramutualfundwith$300millioninastsatthestartoftheyear,and12millionshares

rossreturnonastsis18%andthetotalexpenratiois2%oftheyearend

value,whatistherateofreturnonthefund

A.%

B.%

C.%

D.%

46.A/an_____isanexampleofanexchange-tradedfund.

spider

i

rd

-endfund

dwoodFundllsClassAshareswithafront-endloadof5%andClassBShareswitha12b-1

feesof1%lantollthefundafter4years,areClassAorClassBsharesthe

betterchoiceAssumea10%annualreturnnetofexpens.

snodifference.

sinsufficientinformationgiven.

agesofETFsovermutualfundsincludeallbutwhichoneofthefollowing

adecontinuouslysoinvestorscantradethroughouttheday

nbesoldshortorpurchadonmargin,unlikefundshares

vidersdonothavetollholdingstofundredemptions

uescandivergefromNAV

lfundhas$50millioninastsatthebeginningoftheyearand1millionsharesoutstanding

houttheyearastsgrowat12%.Thefundimposa12b-1feeonallshares

equalto1%.earenodistributionswhatisthe

endofyearNAVforthefund

A.$

B.$

C.$

D.$

$21,600totheLaramieFundwhichhasaNAVof$pershareatthebeginningoftheyear.

Thefunddeductedafront-endloadof4%.Thecuritiesinthefundincreadinvalueby10%during

d'xpenratiois%yourrate

ofreturnonthefundifyoullyoursharesattheendoftheyear

A.4.35%

B.%

C.%

D.%