Question 1

Unlike the Dow Jones Industrial Average, the Nikkei-Dow Jones Average is price weighted.

Accepted Answer

A) True 
 B)False

Question 2

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
  
-Refer to Exhibit 4.6. Calculate a value weighted average for Day T + 1. Assume a base index value of 100 on Day T.

Accepted Answer

A)  46.20 
B)  53.33 
C)  54.12 
D)  92.39 
E)  108.23 
A)  46.20 
B)  53.33 
C)  54.12 
D)  92.39 
E)  108.23

Question 3

The Value Line Composite Average is calculated using the ____ of percentage price changes.

Accepted Answer

A)  arithmetic average 
B)  harmonic average 
C)  expected value 
D)  geometric average 
E)  logarithmic average 
A)  arithmetic average 
B)  harmonic average 
C)  expected value 
D)  geometric average 
E)  logarithmic average

Question 4

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

Accepted Answer

A)  9.32 percent 
B)  10.14 percent 
C)  15.57 percent 
D)  30.63 percent 
E)  54.37 percent 
A)  9.32 percent 
B)  10.14 percent 
C)  15.57 percent 
D)  30.63 percent 
E)  54.37 percent

Question 5

Which of the following are factors that make it difficult to create and maintain a bond index?

Accepted Answer

A)  The universe of bonds is broader than stocks. 
B)  The universe of bonds is constantly changing due to new issues, bond maturities, calls, and bond sinking funds. 
C)  It is difficult to derive valuable, up-to-date prices. 
D)  Bond price volatility is affected by duration, which is constantly changing. 
E)  All of these are correct. 
A)  The universe of bonds is broader than stocks. 
B)  The universe of bonds is constantly changing due to new issues, bond maturities, calls, and bond sinking funds. 
C)  It is difficult to derive valuable, up-to-date prices. 
D)  Bond price volatility is affected by duration, which is constantly changing. 
E)  All of these are correct.

Question 6

To solve comparability problems across countries, global equity indexes with consistent sample selection, weighting, and computational procedures have been developed.

Accepted Answer

A) True 
 B)False

Question 7

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 13th.

Accepted Answer

A)  32 
B)  30 
C)  36.13 
D)  34 
E)  56 
A)  32 
B)  30 
C)  36.13 
D)  34 
E)  56

Question 8

When constructing an index, a small percentage of the total population will provide valid indications of the behavior of the total population if the sample is properly selected.

Accepted Answer

A) True 
 B)False

Question 9

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, 2004.

Accepted Answer

A)  121.25 
B)  119.25 
C)  100.0 
D)  72.5 
E)  81.69 
A)  121.25 
B)  119.25 
C)  100.0 
D)  72.5 
E)  81.69

Unlike the Dow Jones Industrial Average, the Nikkei-Dow Jones Average is price weighted.

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.6. Calculate a value weighted average for Day T + 1. Assume a base index value of 100 on Day T.

The Value Line Composite Average is calculated using the ____ of percentage price changes.

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

Which of the following are factors that make it difficult to create and maintain a bond index?

To solve comparability problems across countries, global equity indexes with consistent sample selection, weighting, and computational procedures have been developed.

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 13th.

When constructing an index, a small percentage of the total population will provide valid indications of the behavior of the total population if the sample is properly selected.

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, 2004.

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

Exam 4: Security Market Indexes and Index Funds

Unlike the Dow Jones Industrial Average, the Nikkei-Dow Jones Average is price weighted.

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) -Refer to Exhibit 4.6. Calculate a value weighted average for Day T + 1. Assume a base index value of 100 on Day T.

The Value Line Composite Average is calculated using the ____ of percentage price changes.

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

Which of the following are factors that make it difficult to create and maintain a bond index?

To solve comparability problems across countries, global equity indexes with consistent sample selection, weighting, and computational procedures have been developed.

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 13th.

When constructing an index, a small percentage of the total population will provide valid indications of the behavior of the total population if the sample is properly selected.

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, 2004.

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, 2004.