投资学选择题及答案英文版

INVESTMENT

TUTORIAL 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 customtailored characteristics are designed、

2、Asset allocation refers to the _________、

A、allocation of the investment portfolio across broad asset classes

B、analysis of the value of securities

C、choice of specific assets within each asset class

D、none of the answers define asset allocation

3、An example of a derivative security is _________、

A、a mon share of General Motors

B、a call option on Intel stock

C、a Ford bond

D、a U、S、Treasury bond

4、Money Market securities are characterized by ________、

I、maturity less than one year

II、safety of the principal investment

III、low rates of return

A、I only

B、I and II only

C、I and III only

D、I, II and III

5、__________ assets generate net ine to the economy and __________ assets define allocation of ine among investors、

A、Financial, financial

B、Financial, real

C、Real, financial

D、Real, real

6、An important trend that has changed the contemporary investment market is _________、

A、financial engineering

B、globalization

C、securitization

D、all three of the other answers

7、Securitization refers to the creation of new securities by _________、

A、selling individual cash flows of a security or loan

B、repackaging individual cash flows of a security or loan into a new payment pattern

C、taking an illiquid asset and converting it into a marketable security

D、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 because

I、intermediaries are better diversified than most individuals

II、intermediaries can exploit economies of scale in investing that individual investors cannot

III、intermediated investments usually offer higher rates of return than direct capital market claims

A、I only

B、I and II only

D、I, II and III

9、Stone 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 transaction、

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 mortgages

B、Credit card debt

C、Automobile loans

D、Equipment leasing

11、An investment advisor has decided to purchase gold, real estate, stocks, and bonds in equal amounts、This decision reflects which part of the investment process?

A、Asset allocation

B、Investment analysis

C、Portfolio analysis

D、Security selection

12、A dollar denominated deposit at a London bank is called _____、

A、eurodollars

B、LIBOR

C、fed funds

D、banker's acceptance

13、The German stock market is measured by which market index?

A、FTSE

B、Dow Jones 30

C、DAX

D、Nikkei

14、Which one of the following is a true statement regarding the Dow Jones Industrial Average?

A、It is a valueweighted average of 30 large industrial stocks

B、It is a priceweighted average of 30 large industrial stocks

C、It is a priceweighted average of 100 large stocks traded on the New York Stock Exchange

D、It is a valueweighted average of all stocks traded on the New York Stock Exchange

15、Preferred stock is like longterm debt in that ___________、

A、it gives the holder voting power regarding the firm's management

B、it promises to pay to its holder a fixed stream of ine each year

C、the preferred dividend is a taxdeductible expense for the firm

D、in the event of bankruptcy preferred stock has equal status with debt

16、Three stocks have share prices of $12, $75, and $30 with total market values of $400 million, $350 million and $150 million respectively、If you were to construct a priceweighted index of the three stocks what would be the index value?

A、300

B、39

C、43

D、30

17、In a ___________ index changes in the value of the stock with the greatest market value will move the index value the most everything else equal、

A、value weighted index

B、equal weighted index