Question 1

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

Accepted Answer

A) Wilshire 5000. 
B) DJIA. 
C) S&P 500. 
D) Russell 2000. 
E) None of the above. 
A) Wilshire 5000. 
B) DJIA. 
C) S&P 500. 
D) Russell 2000. 
E) None of the above.

Question 2

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

Accepted Answer

A) DAX 
B) FTSE 
C) Nikkei 
D) Hang Seng 
E) None of the above 
A) DAX 
B) FTSE 
C) Nikkei 
D) Hang Seng 
E) None of the above

Question 3

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

Accepted Answer

A) A Treasury bill 
B) A negotiable certificate of deposit 
C) Commercial paper 
D) A Treasury bond 
E) A Eurodollar account 
A) A Treasury bill 
B) A negotiable certificate of deposit 
C) Commercial paper 
D) A Treasury bond 
E) A Eurodollar account

Question 4

T-bills are financial instruments initially sold by ________ to raise funds.

Accepted Answer

A) commercial banks 
B) the U.S.government 
C) state and local governments 
D) agencies of the federal government 
E) B and D 
A) commercial banks 
B) the U.S.government 
C) state and local governments 
D) agencies of the federal government 
E) B and D

Question 5

Which of the following is used extensively in foreign trade when the creditworthiness of one trader is unknown to the trading partner?

Accepted Answer

A) Repos 
B) Bankers' acceptances 
C) Eurodollars 
D) Federal funds 
E) none of the above 
A) Repos 
B) Bankers' acceptances 
C) Eurodollars 
D) Federal funds 
E) none of the above

Question 6

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 15% marginal tax bracket,his or her after tax rates of return on the municipal and corporate bonds would be ________ and ______,respectively.

Accepted Answer

A) 7.2% and 9.1% 
B) 7.2% and 7.735% 
C) 6.12% and 7.735% 
D) 8.471% and 9.1% 
E) None of the above 
A) 7.2% and 9.1% 
B) 7.2% and 7.735% 
C) 6.12% and 7.735% 
D) 8.471% and 9.1% 
E) None of the above

Question 7

Which of the following are characteristics of preferred stock?
I.It pays its holder a fixed amount of income each year,at the discretion of its managers.
II.It gives its holder voting power in the firm.
III.Its dividends are usually cumulative.
IV.Failure to pay dividends may result in bankruptcy proceedings.

Accepted Answer

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

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

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

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

T-bills are financial instruments initially sold by ________ to raise funds.

Which of the following is used extensively in foreign trade when the creditworthiness of one trader is unknown to the trading partner?

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 15% marginal tax bracket,his or her after tax rates of return on the municipal and corporate bonds would be __ and ,respectively.

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

Exam 2: Asset Classes and Financial Instruments

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

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

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

T-bills are financial instruments initially sold by ________ to raise funds.

Which of the following is used extensively in foreign trade when the creditworthiness of one trader is unknown to the trading partner?

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 15% marginal tax bracket,his or her after tax rates of return on the municipal and corporate bonds would be ________ and ______,respectively.

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 7.2% and 9.1%,respectively.If the investor is in the 15% marginal tax bracket,his or her after tax rates of return on the municipal and corporate bonds would be __ and ,respectively.