Exam 4: Security Market Indexes and Index Funds

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.7. If the December 31, 2011 value weighted index for ABC was 100, what is the value weighted index for ABC on December 31, 2012?

(Multiple Choice)

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Question 41

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 unweighted index for Dec 31, 2003, after the splits. Assume a base index value of 100. The base year is Dec 31, 2003.

(Multiple Choice)

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Question 42

Which index is created by first deriving the initial total market value of all stocks used in the index?

(Multiple Choice)

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Question 43

There is a high correlation between the Wilshire 5000 index and the alternative NYSE series (S&P 500 and the NYSE), which represents the substantial influence of large NYSE stocks on the Wilshire 5000 index.

(True/False)

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Question 44

An aggregate market index can be used as a benchmark to judge the performance of professional money managers.

(True/False)

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Question 45

What effect does a stock substitution or stock split have on a price-weighted series?

(Multiple Choice)

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Question 46

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.7. If the December 31, 2011 equal weighted index for ABC was 100, what is the equal weighted index for ABC on December 31, 2012?

(Multiple Choice)

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Question 47

The Standard & Poor's 500 index is an example of a value weighted index.

(True/False)

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Question 48

Bond-market indicator series have been around much longer than stock-market indicator series.

(True/False)

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Question 49

There are no composite series currently available that will measure the performance of all securities (i.e. stocks and bonds) in a given country.

(True/False)

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Question 50

Which of the following is NOT a use of security market indicator series?

(Multiple Choice)

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Question 51

A price-weighted index such as the DJIA is a geometric mean of current stock prices.

(True/False)

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Question 52

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 weighed average for January 15th.

(Multiple Choice)

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Question 53

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 unweighted index for Dec 31, 2003, prior to the splits. Assume a base index value of 100. The base year is Dec 31, 2003.

(Multiple Choice)

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Question 54

A two for one stock split causes the divisor in a price-weighted series to decline.

(True/False)

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Question 55

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 unweighted index (geometric mean) for the period Dec 31, 2003 to Dec 31, 2004. Assume a base index value of 100. The base year is Dec 31, 2003.

(Multiple Choice)

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Question 56

The correlations among the U.S. investment-grade-bond series were very high because all rates of return for investment-grade bonds over time are impacted by common macroeconomic variables.

(True/False)

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Question 57

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, 2003, prior to the splits. Assume a base index value of 100. The base year is Dec 31, 2003.

(Multiple Choice)

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Question 58

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 14th.

(Multiple Choice)

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Question 59

For an indexed portfolio, the fund manager will typically

(Multiple Choice)

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Question 60

Showing 41 - 60 of 89

Exam 4: Security Market Indexes and Index Funds

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.7. If the December 31, 2011 value weighted index for ABC was 100, what is the value weighted index for ABC on December 31, 2012?

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 unweighted index for Dec 31, 2003, after the splits. Assume a base index value of 100. The base year is Dec 31, 2003.

Which index is created by first deriving the initial total market value of all stocks used in the index?

There is a high correlation between the Wilshire 5000 index and the alternative NYSE series (S&P 500 and the NYSE), which represents the substantial influence of large NYSE stocks on the Wilshire 5000 index.

An aggregate market index can be used as a benchmark to judge the performance of professional money managers.

What effect does a stock substitution or stock split have on a price-weighted series?

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.7. If the December 31, 2011 equal weighted index for ABC was 100, what is the equal weighted index for ABC on December 31, 2012?

The Standard & Poor's 500 index is an example of a value weighted index.

Bond-market indicator series have been around much longer than stock-market indicator series.

There are no composite series currently available that will measure the performance of all securities (i.e. stocks and bonds) in a given country.

Which of the following is NOT a use of security market indicator series?

A price-weighted index such as the DJIA is a geometric mean of current stock prices.

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 weighed average for January 15th.

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 unweighted index for Dec 31, 2003, prior to the splits. Assume a base index value of 100. The base year is Dec 31, 2003.

A two for one stock split causes the divisor in a price-weighted series to decline.

The correlations among the U.S. investment-grade-bond series were very high because all rates of return for investment-grade bonds over time are impacted by common macroeconomic variables.

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, 2003, prior to the splits. Assume a base index value of 100. The base year is Dec 31, 2003.

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 14th.

For an indexed portfolio, the fund manager will typically

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 unweighted index for Dec 31, 2003, after the splits. Assume a base index value of 100. The base year is Dec 31, 2003.

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 unweighted index for Dec 31, 2003, prior to the splits. Assume a base index value of 100. The base year is Dec 31, 2003.

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, 2003, prior to the splits. Assume a base index value of 100. The base year is Dec 31, 2003.