Consider the following three stocks: $\begin{array}{lll} \text { Stock } & \text { Price Number of shares}& \text { outstanding } \\ \text { Stock A } & \$ 40 & 200 \\ \text { Stock B } & \$ 70 & 500 \\ \text { Stock C } & \$ 10 & 600 \end{array}$ The price-weighted index constructed with the three stocks is

A) 30. B) 40. C) 50. D) 60. E) 70. A) 30. B) 40. C) 50. D) 60. E) 70. B

Exam 2: Asset Classes and Financial Instruments

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Consider the following three stocks: Stock Price Number of shares outstanding Stock A \ 40 200 Stock B \ 70 500 Stock C \ 10 600 The price-weighted index constructed with the three stocks is

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Question 1

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Which one of the following is not a money market instrument?

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Question 2

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A U.S. dollar-denominated bond that is sold in Singapore is a(n)

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Question 3

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The smallest component of the fixed-income market is _______ debt.

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Question 4

The ____ index represents the performance of the German stock market.

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Question 5

Which of the following is not a mortgage-related government or government-sponsored agency?

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Question 6

The ____ index represents the performance of the Canadian stock market.

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Question 7

The stocks on the Dow Jones Industrial Average

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Question 8

If the market prices of each of the 30 stocks in the Dow Jones Industrial Average (DJIA) all change by the same percentage amount during a given day, which stock will have the greatest impact on the DJIA?

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Question 9

An investor purchases one municipal and one corporate bond that pay rates of return of 7.2% and 9.1%, respectively. If the investor is in the 12% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be __ and , respectively.

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Question 10

An investor purchases one municipal and one corporate bond that pay rates of return of 7.5% and 10.3%, respectively. If the investor is in the 24% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be __ and , respectively.

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Question 11

Federally-sponsored agency debt

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Question 12

What interest rate have US regulators proposed be the new short term benchmark rate?

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Question 13

The largest component of the fixed-income market is _______ debt.

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Question 14

The ultimate stock index in the U.S. is the

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Question 15

The money market is a subsector of the

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Question 16

Which of the following is true of the Dow Jones Industrial Average?

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Question 17

If a Treasury note has a bid price of $995, the quoted bid price in the Wall Street Journal would be

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Question 18

A form of short-term borrowing by dealers in government securities is (are)

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Question 19

What short term interest rate was proposed to be phased out by 2021?

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Question 20

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Exam 2: Asset Classes and Financial Instruments

Consider the following three stocks: Stock Price Number of shares outstanding Stock A \ 40 200 Stock B \ 70 500 Stock C \ 10 600 The price-weighted index constructed with the three stocks is

Which one of the following is not a money market instrument?

A U.S. dollar-denominated bond that is sold in Singapore is a(n)

The smallest component of the fixed-income market is _______ debt.

The ____ index represents the performance of the German stock market.

Which of the following is not a mortgage-related government or government-sponsored agency?

The ____ index represents the performance of the Canadian stock market.

The stocks on the Dow Jones Industrial Average

If the market prices of each of the 30 stocks in the Dow Jones Industrial Average (DJIA) all change by the same percentage amount during a given day, which stock will have the greatest impact on the DJIA?

An investor purchases one municipal and one corporate bond that pay rates of return of 7.2% and 9.1%, respectively. If the investor is in the 12% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively.

An investor purchases one municipal and one corporate bond that pay rates of return of 7.5% and 10.3%, respectively. If the investor is in the 24% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively.

Federally-sponsored agency debt

What interest rate have US regulators proposed be the new short term benchmark rate?

The largest component of the fixed-income market is _______ debt.

The ultimate stock index in the U.S. is the

The money market is a subsector of the

Which of the following is true of the Dow Jones Industrial Average?

If a Treasury note has a bid price of $995, the quoted bid price in the Wall Street Journal would be

A form of short-term borrowing by dealers in government securities is (are)

What short term interest rate was proposed to be phased out by 2021?

The Investment Environment

How Securities Are Traded

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Capital Allocation to Risky Assets

Efficient Diversification

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioral 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

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An investor purchases one municipal and one corporate bond that pay rates of return of 7.2% and 9.1%, respectively. If the investor is in the 12% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be __ and , respectively.

An investor purchases one municipal and one corporate bond that pay rates of return of 7.5% and 10.3%, respectively. If the investor is in the 24% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be __ and , respectively.