Exam 11: Managing a Stock Portfolio: a Worldwide Issue

Market risk is the single most important risk affecting the price movements of common stocks.

Due to advances in technology and better understanding of stocks and financial markets, security analysts' estimates have become more accurate.

The passive investment strategy does not try to find undervalued stocks nor time the market. Instead, it is concerned with:

A utility stock is more likely to have a beta lower than the overall market.

An index fund that uses futures to hold the S&P 500 Index and invests the remainder in bonds would be an example of:

Which of the following statements concerning index funds and actively managed funds is true?

An analyst employed by a pension fund to search for stocks for the fund to invest in would be referred to as:

The so-called "global settlement" negotiated by the SEC, NYSE and NASD with a number of brokerage firms was intended to:

Market timers attempt to earn excess returns by:

If security prices fully reflect all relevant information available and usable, a securities market is said to be:

From 1989 to April 2003, the Japanese stock market lost what percent of its value?

A bear market is one characterized by a decline of:

Which of the following is TRUE regarding fluctuations in both individual stock prices and portfolios of stocks?

The central focus of a security analyst's job is to:

One of the major benefits of employing a buy and hold strategy is the savings on trading costs.

If security markets are totally efficient, the best common stock strategy to take is:

Buy side analysts will more likely have a potential conflict of interest in a stock than a sell-side analyst.

Historically, sell-side equity research has typically been _________to the target company?

A common asset allocation for a number of institutional investors using only two asset classes is 60 percent equities and 40 percent bonds.

A significant advantage of index funds is their: