Question 1

Conditions that make a section of land different than the surrounding terrain are called

Accepted Answer

A)  biological factors 
B)  fungibility factors 
C)  microsite factors 
D)  acquisition factors 
A)  biological factors 
B)  fungibility factors 
C)  microsite factors 
D)  acquisition factors C

Question 2

Growing trees are called

Accepted Answer

A)  land stands 
B)  stumpage 
C)  wood on the hoof 
D)  volume land 
A)  land stands 
B)  stumpage 
C)  wood on the hoof 
D)  volume land B

Question 3

State governments with large investments in timberland are

Accepted Answer

A)  California and New Hampshire 
B)  Missouri and Maine 
C)  Alabama and Texas 
D)  Pennsylvania and New Jersey 
A)  California and New Hampshire 
B)  Missouri and Maine 
C)  Alabama and Texas 
D)  Pennsylvania and New Jersey A

Question 4

Clear-cutting may be appropriate if a forest depends on

Accepted Answer

A)  river drainage 
B)  mutual canopy support 
C)  wetland waterfowl 
D)  animal grazing 
A)  river drainage 
B)  mutual canopy support 
C)  wetland waterfowl 
D)  animal grazing

Question 5

Which of the following is a real asset?

Accepted Answer

A)  Corporate bond 
B)  Government bond 
C)  Twenty dollar bill 
D)  Computer 
A)  Corporate bond 
B)  Government bond 
C)  Twenty dollar bill 
D)  Computer

Question 6

A trained forest appraiser knows to look for forests undergoing

Accepted Answer

A)  a species shift 
B)  a micro site shift 
C)  mutual canopy support 
D)  a product class shift 
A)  a species shift 
B)  a micro site shift 
C)  mutual canopy support 
D)  a product class shift

Question 7

The majority of institutional landowners are looking for

Accepted Answer

A)  annual cash flows 
B)  long-term price appreciation 
C)  short-term price appreciation 
D)  a mix of annual cash flows and long-term price appreciation 
A)  annual cash flows 
B)  long-term price appreciation 
C)  short-term price appreciation 
D)  a mix of annual cash flows and long-term price appreciation

Question 8

For a U. S. coin in circulation, which of the following is usually highest?

Accepted Answer

A)  Numismatic value 
B)  Intrinsic value 
C)  Popular value 
D)  Fiat value 
A)  Numismatic value 
B)  Intrinsic value 
C)  Popular value 
D)  Fiat value

Question 9

Which of the following is generally not a driving force behind gold price movements?

Accepted Answer

A)  Inflation 
B)  The strength of foreign currencies 
C)  Supply 
D)  Demand 
A)  Inflation 
B)  The strength of foreign currencies 
C)  Supply 
D)  Demand

Question 10

The primary advantage of gold certificates is

Accepted Answer

A)  convenience 
B)  tax reasons 
C)  added income producing ability 
D)  added security against corporate default 
A)  convenience 
B)  tax reasons 
C)  added income producing ability 
D)  added security against corporate default

Question 11

Which of the following is a characteristic of a financial asset?

Accepted Answer

A)  It has a corresponding liability 
B)  It produces income 
C)  It usually shows price appreciation 
D)  It usually generates no income 
A)  It has a corresponding liability 
B)  It produces income 
C)  It usually shows price appreciation 
D)  It usually generates no income

Question 12

______ property is a legal interest in real estate.

Accepted Answer

A)  Personal 
B)  Proprietary 
C)  Financial 
D)  Real 
A)  Personal 
B)  Proprietary 
C)  Financial 
D)  Real

Question 13

A significant inhibition to timberland investment has historically been

Accepted Answer

A)  the lack of a standard timberland index 
B)  adverse Internal Revenue Service rulings 
C)  high commission costs 
D)  inability to generate income 
A)  the lack of a standard timberland index 
B)  adverse Internal Revenue Service rulings 
C)  high commission costs 
D)  inability to generate income

Question 14

Of their investments in real estate, pension funds have about ____ of their money in timberland.

Accepted Answer

A)  2% 
B)  4% 
C)  8% 
D)  12% 
A)  2% 
B)  4% 
C)  8% 
D)  12%

Question 15

Timberland losses due to fire, insects, and disease total less than _____ per year.

Accepted Answer

A)  0.2% 
B)  2% 
C)  5% 
D)  10% 
A)  0.2% 
B)  2% 
C)  5% 
D)  10%

Question 16

Usual motivations for timberland investment include all of the following except

Accepted Answer

A)  regulatory defense 
B)  collateral 
C)  pure investment 
D)  strategic investment 
A)  regulatory defense 
B)  collateral 
C)  pure investment 
D)  strategic investment

Question 17

Which of the following is not an official gold coin issued by a government?

Accepted Answer

A)  South African Krugerrand 
B)  Canadian Maple Leaf 
C)  Congolese Harmonica 
D)  Chinese Panda 
A)  South African Krugerrand 
B)  Canadian Maple Leaf 
C)  Congolese Harmonica 
D)  Chinese Panda

Question 18

Classical characteristics of land include all of the following except

Accepted Answer

A)  it is immobile 
B)  it is fungible 
C)  it is indestructible 
D)  it is non-income producing 
A)  it is immobile 
B)  it is fungible 
C)  it is indestructible 
D)  it is non-income producing

Question 19

Land is widely considered to be a

Accepted Answer

A)  mobile investment 
B)  long-term investment 
C)  fungible investment 
D)  financial asset 
A)  mobile investment 
B)  long-term investment 
C)  fungible investment 
D)  financial asset

Question 20

The price of gold is fixed daily in

Accepted Answer

A)  Budapest 
B)  Washington, D. C. 
C)  Amsterdam 
D)  London 
A)  Budapest 
B)  Washington, D. C. 
C)  Amsterdam 
D)  London

Exam 13: The Role of Real Assets

Conditions that make a section of land different than the surrounding terrain are called

Growing trees are called

State governments with large investments in timberland are

Clear-cutting may be appropriate if a forest depends on

Which of the following is a real asset?

A trained forest appraiser knows to look for forests undergoing

The majority of institutional landowners are looking for

For a U. S. coin in circulation, which of the following is usually highest?

Which of the following is generally not a driving force behind gold price movements?

The primary advantage of gold certificates is

Which of the following is a characteristic of a financial asset?

______ property is a legal interest in real estate.

A significant inhibition to timberland investment has historically been

Of their investments in real estate, pension funds have about ____ of their money in timberland.

Timberland losses due to fire, insects, and disease total less than _____ per year.

Usual motivations for timberland investment include all of the following except

Which of the following is not an official gold coin issued by a government?

Classical characteristics of land include all of the following except

Land is widely considered to be a

The price of gold is fixed daily in

The Process of Portfolio Management

Valuation, Risk, Return, and Uncertainty

Setting Portfolio Objectives

Investment Policy

The Mathematics of Diversification

Why Diversification Is a Good Idea

International Investment and Diversification

The Capital Markets and Market Efficiency

Picking the Equity Players

Equity Valuation Tools

Security Screening

Bond Pricing and Selection

Alternative Assets

Revision of the Equity Portfolio

Revision of the Fixed-Income Portfolio

Principles of Options and Option Pricing

Option Overwriting

Performance Evaluation

Fiduciary Duties and Responsibilities

Principles of the Futures Market

Benching the Equity Players

Removing Interest Rate Risk

Integrating Derivative Assets and Portfolio Management

Contemporary Issues in Portfolio Management

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