Consider the following three stocks: $\begin{array}{lll} \underline{\text { Stock }} &\underline{ \text { Price } }&\underline{ \text { Number of shares outstandins} } \\ \text { Stock A } & \$ 40 & 200 \\ \text { Stock B } & \$ 70 & 500 \\ \text { Stock C } & \$ 10 & 600 \end{array}$ -The value-weighted index constructed with the three stocks using a divisor of 100 is

A) 1.2 B) 1200 C) 490 D) 4900 E) 49 A) 1.2 B) 1200 C) 490 D) 4900 E) 49

Exam 2: Asset Classes and Financial Instruments

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An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%,respectively.If the investor is in the 20% marginal tax bracket,his or her after tax rates of return on the municipal and corporate bonds would be __ and ,respectively.

(Multiple Choice)

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Question 21

Freddie Mac and Ginnie Mae were organized to provide

(Multiple Choice)

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Question 22

What does the term "negotiable" mean with regard to negotiable certificates of deposit?

(Multiple Choice)

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Question 23

You purchased a futures contract on corn at a futures price of 331 and at the time of expiration the price was 343.What was your profit or loss?

(Multiple Choice)

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Question 24

Consider the following three stocks: Stock A \ 40 200 Stock B \ 70 500 Stock C \ 10 600 -The value-weighted index constructed with the three stocks using a divisor of 100 is

(Multiple Choice)

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Question 25

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?

(Multiple Choice)

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Question 26

Discuss the advantages and disadvantages of common stock ownership,relative to other investment alternatives.

(Essay)

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Question 27

The ____ is an example of a U.S.index of small firms.

(Multiple Choice)

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Question 28

The yield to maturity reported in the financial pages for Treasury securities

(Multiple Choice)

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Question 29

The stocks on the Dow Jones Industrial Average

(Multiple Choice)

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Question 30

Which of the following statements is (are)true regarding municipal bonds? I.A municipal bond is a debt obligation issued by state or local governments. II.A municipal bond is a debt obligation issued by the federal government. III.The interest income from a municipal bond is exempt from federal income taxation. IV.The interest income from a municipal bond is exempt from state and local taxation in the issuing state.

(Multiple Choice)

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Question 31

Assume at these prices the value-weighted index constructed with the three stocks is 490.What would the index be if stock B is split 2 for 1 and stock C 4 for 1?

(Multiple Choice)

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Question 32

You purchased a futures contract on corn at a futures price of 350 and at the time of expiration the price was 352.What was your profit or loss?

(Multiple Choice)

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Question 33

The interest rate charged by banks with excess reserves at a Federal Reserve Bank to banks needing overnight loans to meet reserve requirements is called the_________.

(Multiple Choice)

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Question 34

The price quotations of Treasury bonds in the Wall Street Journal show an ask price of 104: 08 and a bid price of 104: 04)As a seller of the bond what is the dollar price you expect to pay?

(Multiple Choice)

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Question 35

Corporations can exclude ____________ percent of the dividends received from preferred stock from taxes.

(Multiple Choice)

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Question 36

If a Treasury note has a bid price of $975,the quoted bid price in the Wall Street Journal would be

(Multiple Choice)

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Question 37

Which of the following indices is (are)market-value weighted? I.The New York Stock Exchange Composite Index II.The Standard and Poor's 500 Stock Index III.The Dow Jones Industrial Average

(Multiple Choice)

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Question 38

A 5.5% 20-year municipal bond is currently priced to yield 7.2%.For a taxpayer in the 33% marginal tax bracket,this bond would offer an equivalent taxable yield of:

(Multiple Choice)

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Question 39

In the event of the firm's bankruptcy

(Multiple Choice)

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Question 40

Showing 21 - 40 of 87

Exam 2: Asset Classes and Financial Instruments

An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%,respectively.If the investor is in the 20% marginal tax bracket,his or her after tax rates of return on the municipal and corporate bonds would be ________ and ______,respectively.

Freddie Mac and Ginnie Mae were organized to provide

What does the term "negotiable" mean with regard to negotiable certificates of deposit?

You purchased a futures contract on corn at a futures price of 331 and at the time of expiration the price was 343.What was your profit or loss?

Consider the following three stocks: Stock A \ 40 200 Stock B \ 70 500 Stock C \ 10 600 -The value-weighted index constructed with the three stocks using a divisor of 100 is

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?

Discuss the advantages and disadvantages of common stock ownership,relative to other investment alternatives.

The ____ is an example of a U.S.index of small firms.

The yield to maturity reported in the financial pages for Treasury securities

The stocks on the Dow Jones Industrial Average

Assume at these prices the value-weighted index constructed with the three stocks is 490.What would the index be if stock B is split 2 for 1 and stock C 4 for 1?

You purchased a futures contract on corn at a futures price of 350 and at the time of expiration the price was 352.What was your profit or loss?

The interest rate charged by banks with excess reserves at a Federal Reserve Bank to banks needing overnight loans to meet reserve requirements is called the_________.

The price quotations of Treasury bonds in the Wall Street Journal show an ask price of 104: 08 and a bid price of 104: 04)As a seller of the bond what is the dollar price you expect to pay?

Corporations can exclude ____________ percent of the dividends received from preferred stock from taxes.

If a Treasury note has a bid price of $975,the quoted bid price in the Wall Street Journal would be

Which of the following indices is (are)market-value weighted? I.The New York Stock Exchange Composite Index II.The Standard and Poor's 500 Stock Index III.The Dow Jones Industrial Average

A 5.5% 20-year municipal bond is currently priced to yield 7.2%.For a taxpayer in the 33% marginal tax bracket,this bond would offer an equivalent taxable yield of:

In the event of the firm's bankruptcy

The Investment Environment

How Securities are Traded

Mutual Funds and Other Investment Companies

Introduction to Risk,return,and the Historical Record

Risk Aversion and 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

Behavioral Finance and Technical Analysis

Empirical Evidence on Security Returns

Bond Prices and Yields

The Term Structure of Interest Rates

Managing Bond Portfolios

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, swaps, and Risk Management

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the CFA Institute Appendices

Filters

An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%,respectively.If the investor is in the 20% marginal tax bracket,his or her after tax rates of return on the municipal and corporate bonds would be __ and ,respectively.