Exam 4: Security Market Indexes and Index Funds

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.7. What would be the total percentage change in an equally weighted portfolio of ABC?

(Multiple Choice)

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Question 21

Which of the following is TRUE of the various market index series?

(Multiple Choice)

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Question 22

A properly selected sample for use in constructing a market indicator series will consider the sample's source, size, and

(Multiple Choice)

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Question 23

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003. -Refer to Exhibit 4.5. Calculate the price weighted series for Dec 31, 2003, prior to the splits.

(Multiple Choice)

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Question 24

Exchange-Traded Funds (ETF) are depository receipts that give investors a pro rata claim on the capital gains and cash flows of securities held by financial institutions.

(True/False)

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Question 25

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.3. Calculate the average annual rate of change for GB Industries for the five-year period using the arithmetic mean.

(Multiple Choice)

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Question 26

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003. -Refer to Exhibit 4.5. Calculate the percentage return in the price weighted series for the period Dec 31, 2000 to Dec 31, 2004.

(Multiple Choice)

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Question 27

The actual index movements are typically based on the arithmetic mean of the percent changes in price or value for the stocks in the

(Multiple Choice)

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Question 28

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003. -Refer to Exhibit 4.5. Calculate the value weighted index for Dec 31, 2004. Assume a base index value of 100. The base year is Dec 31, 2003.

(Multiple Choice)

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Question 29

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.6. If an equal-weighted index is constructed on Day T with $10,000 in each stock, what is the percentage change in wealth for this index on Day T + 1? Assume a base index value of 100 on Day T.

(Multiple Choice)

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Question 30

The low correlations between the U.S. and Japan confirm the benefit of global diversification.

(True/False)

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Question 31

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) *2:1 Split on Stock Z after Close on Jan. 13, 2005 **3:1 Split on Stock X after Close on Jan. 15, 2005 The base date for index calculations is January 13, 2005 -Refer to Exhibit 4.2. What is the divisor at the beginning of January 14th?

(Multiple Choice)

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Question 32

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) *2:1 Split on Stock Z after Close on Jan. 13, 2005 **3:1 Split on Stock X after Close on Jan. 15, 2005 The base date for index calculations is January 13, 2005 -Refer to Exhibit 4.2. Calculate a price weighted average for January 16th.

(Multiple Choice)

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Question 33

The NYSE series should have higher rates of return and risk measures than the AMEX and OTC series.

(True/False)

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Question 34

The Ryan Treasury Index is an example of a

(Multiple Choice)

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Question 35

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.1. For a value-weighted series, assume that Day T is the base period and the base value is 100. What is the new index value for Day T + 1, and what is the percentage change in the index from Day T?

(Multiple Choice)

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Question 36

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.6. Compute the arithmetic mean of the price change of Stocks Q, R, and S from days T to T + 1.

(Multiple Choice)

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Question 37

An equally weighted indicator series is also known as an unweighted indicator series.

(True/False)

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Question 38

Of the following indices, which includes the most comprehensive list of stocks?

(Multiple Choice)

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Question 39

A price weighted series is disproportionately influenced by larger capitalization companies.

(True/False)

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Question 40

Showing 21 - 40 of 89

Exam 4: Security Market Indexes and Index Funds

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.7. What would be the total percentage change in an equally weighted portfolio of ABC?

Which of the following is TRUE of the various market index series?

A properly selected sample for use in constructing a market indicator series will consider the sample's source, size, and

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003. ​ -Refer to Exhibit 4.5. Calculate the price weighted series for Dec 31, 2003, prior to the splits.

Exchange-Traded Funds (ETF) are depository receipts that give investors a pro rata claim on the capital gains and cash flows of securities held by financial institutions.

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.3. Calculate the average annual rate of change for GB Industries for the five-year period using the arithmetic mean.

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003. ​ -Refer to Exhibit 4.5. Calculate the percentage return in the price weighted series for the period Dec 31, 2000 to Dec 31, 2004.

The actual index movements are typically based on the arithmetic mean of the percent changes in price or value for the stocks in the

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003. ​ -Refer to Exhibit 4.5. Calculate the value weighted index for Dec 31, 2004. Assume a base index value of 100. The base year is Dec 31, 2003.

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.6. If an equal-weighted index is constructed on Day T with $10,000 in each stock, what is the percentage change in wealth for this index on Day T + 1? Assume a base index value of 100 on Day T.

The low correlations between the U.S. and Japan confirm the benefit of global diversification.

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) *2:1 Split on Stock Z after Close on Jan. 13, 2005 **3:1 Split on Stock X after Close on Jan. 15, 2005 The base date for index calculations is January 13, 2005 -Refer to Exhibit 4.2. What is the divisor at the beginning of January 14th?

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) *2:1 Split on Stock Z after Close on Jan. 13, 2005 **3:1 Split on Stock X after Close on Jan. 15, 2005 The base date for index calculations is January 13, 2005 -Refer to Exhibit 4.2. Calculate a price weighted average for January 16th.

The NYSE series should have higher rates of return and risk measures than the AMEX and OTC series.

The Ryan Treasury Index is an example of a

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.1. For a value-weighted series, assume that Day T is the base period and the base value is 100. What is the new index value for Day T + 1, and what is the percentage change in the index from Day T?

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.6. Compute the arithmetic mean of the price change of Stocks Q, R, and S from days T to T + 1.

An equally weighted indicator series is also known as an unweighted indicator series.

Of the following indices, which includes the most comprehensive list of stocks?

A price weighted series is disproportionately influenced by larger capitalization companies.

The Investment Setting

The Investment Setting: Part A

Asset Allocation and Security Selection

Asset Allocation and Security Selection: Part A

Organization and Functioning of Securities Markets

Efficient Capital Markets, Behavioral Finance, and Technical Analysis

An Introduction to Portfolio Management

An Introduction to Portfolio Management: Part A

An Introduction to Portfolio Management: Part B

Asset Pricing Models

Equity Valuation

The Top-Down Approach to Market, Industry, and Company Analysis

The Practice of Fundamental Investing

Equity Portfolio Management Strategies

Bond Fundamentals and Valuation

Bond Analysis and Portfolio Management Strategies

An Introduction to Derivative Markets and Securities

Forward, Futures, and Swap Contracts

Option Contracts

Professional Money Management, Alternative Assets, and Industry Ethics

Evaluation of Portfolio Performance

Filters

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003. -Refer to Exhibit 4.5. Calculate the price weighted series for Dec 31, 2003, prior to the splits.

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003. -Refer to Exhibit 4.5. Calculate the percentage return in the price weighted series for the period Dec 31, 2000 to Dec 31, 2004.

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003. -Refer to Exhibit 4.5. Calculate the value weighted index for Dec 31, 2004. Assume a base index value of 100. The base year is Dec 31, 2003.