Question 1

The material wealth of a society is a function of

Accepted Answer

A) all financial assets. 
B) all real assets. 
C) all financial and real assets. 
D) all physical assets. 
A) all financial assets. 
B) all real assets. 
C) all financial and real assets. 
D) all physical assets.

Question 2

A fixed-income security pays

Accepted Answer

A) a fixed level of income for the life of the owner. 
B) a fixed stream of income or a stream of income that is determined according to a specified formula for the life of the security. 
C) a variable level of income for owners on a fixed income. 
D) a fixed or variable income stream at the option of the owner. 
A) a fixed level of income for the life of the owner. 
B) a fixed stream of income or a stream of income that is determined according to a specified formula for the life of the security. 
C) a variable level of income for owners on a fixed income. 
D) a fixed or variable income stream at the option of the owner.

Question 3

The Sarbanes-Oxley Act

Accepted Answer

A) requires corporations to have more independent directors. 
B) requires the firm's CFO to personally vouch for the firm's accounting statements. 
C) prohibits auditing firms from providing other services to clients. 
D) requires corporations to have more independent directors and requires the firm's CFO to personally vouch for the firm's accounting statements. 
E) All of the above. 
A) requires corporations to have more independent directors. 
B) requires the firm's CFO to personally vouch for the firm's accounting statements. 
C) prohibits auditing firms from providing other services to clients. 
D) requires corporations to have more independent directors and requires the firm's CFO to personally vouch for the firm's accounting statements. 
E) All of the above.

Question 4

Financial assets permit all of the following except

Accepted Answer

A) consumption timing. 
B) allocation of risk. 
C) separation of ownership and control. 
D) elimination of risk. 
A) consumption timing. 
B) allocation of risk. 
C) separation of ownership and control. 
D) elimination of risk.

Question 5

Which of the following portfolio construction methods starts with asset allocation?

Accepted Answer

A) Top-down 
B) Bottom-up 
C) Middle-out 
D) Buy and hold 
A) Top-down 
B) Bottom-up 
C) Middle-out 
D) Buy and hold

Question 6

Asset allocation refers to

Accepted Answer

A) choosing which securities to hold based on their valuation. 
B) investing only in "safe" securities. 
C) the allocation of assets into broad asset classes. 
D) bottom-up analysis. 
A) choosing which securities to hold based on their valuation. 
B) investing only in "safe" securities. 
C) the allocation of assets into broad asset classes. 
D) bottom-up analysis.

Question 7

Until 1999, the ________ Act(s) prohibited banks in the United States from both accepting deposits and underwriting securities.

Accepted Answer

A) Sarbanes-Oxley 
B) Glass-Steagall 
C) SEC 
D) Sarbanes-Oxley and SEC 
A) Sarbanes-Oxley 
B) Glass-Steagall 
C) SEC 
D) Sarbanes-Oxley and SEC

Question 8

Which of the following portfolio construction methods starts with security analysis?

Accepted Answer

A) Top-down 
B) Bottom-up 
C) Middle-out 
D) Buy and hold 
A) Top-down 
B) Bottom-up 
C) Middle-out 
D) Buy and hold

Question 9

Which of the following is true about mortgage-backed securities? I) They aggregate individual home mortgages into homogeneous pools.
II) The purchaser receives monthly interest and principal payments received from payments made on the pool.
III) The banks that originated the mortgages maintain ownership of them.
IV) The banks that originated the mortgages may continue to service them.

Accepted Answer

A) II, III, and IV 
B) I, II, and IV 
C) II and IV 
D) I, III, and IV 
A) II, III, and IV 
B) I, II, and IV 
C) II and IV 
D) I, III, and IV

Question 10

In 2016, ____________ was(were) the least significant financial asset(s) of U.S.nonfinancial businesses in terms of total value.

Accepted Answer

A) cash and deposits 
B) trade credit 
C) trade debt 
D) inventory 
E) marketable securities 
A) cash and deposits 
B) trade credit 
C) trade debt 
D) inventory 
E) marketable securities

Question 11

Money market securities

Accepted Answer

A) are short term. 
B) are highly marketable. 
C) are generally very low risk. 
D) are highly marketable and are generally very low risk. 
E) All of the options. 
A) are short term. 
B) are highly marketable. 
C) are generally very low risk. 
D) are highly marketable and are generally very low risk. 
E) All of the options.

The material wealth of a society is a function of

A fixed-income security pays

The Sarbanes-Oxley Act

Financial assets permit all of the following except

Which of the following portfolio construction methods starts with asset allocation?

Asset allocation refers to

Until 1999, the ________ Act(s) prohibited banks in the United States from both accepting deposits and underwriting securities.

Which of the following portfolio construction methods starts with security analysis?

In 2016, ____________ was(were) the least significant financial asset(s) of U.S.nonfinancial businesses in terms of total value.

Money market securities

Financial Markets, Asset Classes and Financial Instruments

How Securities Are Traded

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Capital Allocation to Risky Assets

Optimal Risky Portfolios

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioural Finance and Technical Analysis

Empirical Evidence on Security Returns

Bond Prices and Yields

The Term Structure of Interest Rates

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, Swaps, and Risk Management

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the Cfa Institute

Filters

Exam 1: The Investment Environment

The material wealth of a society is a function of

A fixed-income security pays

The Sarbanes-Oxley Act

Financial assets permit all of the following except

Which of the following portfolio construction methods starts with asset allocation?

Asset allocation refers to

Until 1999, the ________ Act(s) prohibited banks in the United States from both accepting deposits and underwriting securities.

Which of the following portfolio construction methods starts with security analysis?

In 2016, ____________ was(were) the least significant financial asset(s) of U.S.nonfinancial businesses in terms of total value.

Money market securities

Financial Markets, Asset Classes and Financial Instruments

How Securities Are Traded

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Capital Allocation to Risky Assets

Optimal Risky Portfolios

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioural Finance and Technical Analysis

Empirical Evidence on Security Returns

Bond Prices and Yields

The Term Structure of Interest Rates

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, Swaps, and Risk Management

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the Cfa Institute

Filters