投资学选择题及答案英文版

Multiple Choice Questions1. A purchase of a new issue of stock takes placeA) in the secondary market.B) in the primary market.C) usually with the assistance of an investment banker.D) A and B.E) B and C.Answer: E Difficulty: EasyRationale: Funds from the sale of new issues flow to the issuing corporation, making this a primary market transaction. Investment bankers usually assist by pricing the issue and finding buyers.2. The following statements regarding the specialist are true:A) Specialists maintain a book listing outstanding unexecuted limit orders.B) Specialists earn income from commissions and spreads in stock prices.C) Specialists stand ready to trade at quoted bid and ask prices.D) Specialists cannot trade in their own accounts.E) A, B, and C are all true.Answer: E Difficulty: ModerateRationale: The specialists' functions are all of the items listed in A, B, and C. Inaddition, specialists trade in their own accounts.3. Investment bankersA) act as intermediaries between issuers of stocks and investors.B) act as advisors to companies in helping them analyze their financial needs andfind buyers for newly issued securities.C) accept deposits from savers and lend them out to companies.D) A and B.E) A, B, and C.Answer: D Difficulty: ModerateRationale: The role of the investment banker is to assist the firm in issuing newsecurities, both in advisory and marketing capacities. The investment banker does not have a role comparable to a commercial bank, as indicated in C.4. In a "firm commitment"A) the investment banker buys the stock from the company and resells the issue tothe public.B) the investment banker agrees to help the firm sell the stock at a favorable price.C) the investment banker finds the best marketing arrangement for the investmentbanking firm.D) B and C.E) A and B.Answer: A Difficulty: Moderate5. The secondary market consists ofA) transactions on the AMEX.B) transactions in the OTC market.C) transactions through the investment banker.D) A and B.E) A, B, and C.Answer: D Difficulty: ModerateRationale: The secondary market consists of transactions on the organized exchanges and in the OTC market. The investment banker is involved in the placement of new issues in the primary market.6. The use of the Internet to trade and underwrite securitiesA) is illegal under SEC regulations.B) is regulated by the New York Stock Exchange.C) decreases underwriting costs for a new security issue.D) increases underwriting costs for a new security issue.E) is regulated by the National Association of Securities Dealers.Answer: C Difficulty: ModerateRationale: The SEC permits trading and underwriting of securities over the Internet, but has required firms participating in this activity to take steps to safeguardinvestment funds. This form of underwriting is expected to grow quickly due to its lower cost.7. Initial margin requirements are determined byA) the Securities and Exchange Commission.B) the Federal Reserve System.C) the New York Stock Exchange.D) B and C.E) A and BAnswer: B Difficulty: ModerateRationale: The Board of Governors of the Federal Reserve System determines initial margin requirements. The New York Stock Exchange determines maintenancemargin requirements on NYSE-listed stocks; however, brokers usually setmaintenance margin requirements above those established by the NYSE.8. You purchased XYZ stock at $50 per share. The stock is currently selling at $65. Yourgains may be protected by placing a __________A) stop-buy orderB) limit-buy orderC) market orderD) limit-sell orderE) none of the above.Answer: D Difficulty: ModerateRationale: With a limit-sell order, your stock will be sold only at a specified price, or better. Thus, such an order would protect your gains. None of the other orders are applicable to this situation.9. You sold ABC stock short at $80 per share. Your losses could be minimized by placinga __________:A) limit-sell orderB) limit-buy orderC) stop-buy orderD) day-orderE) none of the above.Answer: C Difficulty: ModerateRationale: With a stop-buy order, the stock would be purchased if the price increased to a specified level, thus limiting your loss. None of the other orders are applicable to this situation.10. Which one of the following statements regarding orders is falseA) A market order is simply an order to buy or sell a stock immediately at theprevailing market price.B) A limit sell order is where investors specify prices at which they are willing to sella security.C) If stock ABC is selling at $50, a limit-buy order may instruct the broker to buy thestock if and when the share price falls below $45.D) A day order expires at the close of the trading day.E) None of the above.Answer: E Difficulty: ModerateRationale: All of the order descriptions above are correct.11. Restrictions on trading involving insider information apply to the following exceptA) corporate officers and directors.B) relatives of corporate directors and officers.C) major stockholders.D) All of the above are subject to insider trading restrictions.E) None of the above is subject to insider trading restrictions.Answer: D Difficulty: ModerateRationale: A, B, and C are corporate insiders and are subject to restrictions on trading on inside information. Further, the Supreme Court held that traders may not trade on nonpublic information even if they are not insiders.12. The cost of buying and selling a stock consists of __________.A) broker's commissionsB) dealer's bid-asked spreadC) a price concession an investor may be forced to make.D) A and B.E) A, B, and C.Answer: E Difficulty: ModerateRationale: All of the above are possible costs of buying and selling a stock.13. Assume you purchased 200 shares of XYZ common stock on margin at $70 per sharefrom your broker. If the initial margin is 55%, how much did you borrow from the brokerA) $6,000B) $4,000C) $7,700D) $7,000E) $6,300Answer: E Difficulty: ModerateRationale: 200 shares * $70/share * = $14,000 * = $6,300.14. You sold short 200 shares of common stock at $60 per share. The initial margin is60%. Your initial investment wasA) $4,800.B) $12,000.C) $5,600.D) $7,200.E) none of the above.Answer: D Difficulty: ModerateRationale: 200 shares * $60/share * = $12,000 * = $7,20015. You purchased 100 shares of ABC common stock on margin at $70 per share.Assume the initial margin is 50% and the maintenance margin is 30%. Below what stock price level would you get a margin call Assume the stock pays no dividend;ignore interest on margin.A) $21B) $50C) $49D) $80E) none of the aboveAnswer: B Difficulty: DifficultRationale: 100 shares * $70 * .5 = $7,000 * = $3,500 (loan amount); = (100P -$3,500)/100P; 30P = 100P - $3,500; -70P = -$3,500; P = $50.16. You purchased 100 shares of common stock on margin at $45 per share. Assume theinitial margin is 50% and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $30 Ignore interest on margin.A)B)C)D)E)Answer: E Difficulty: DifficultRationale: 100 shares * $45/share * = $4,500 * = $2,250 (loan amount); X =[100($30) - $2,250]/100($30); X = .17. You purchased 300 shares of common stock on margin for $60 per share. The initialmargin is 60% and the stock pays no dividend. What would your rate of return be if you sell the stock at $45 per share Ignore interest on margin.A) 25%B) -33%C) 44%D) -42%E) –54%Answer: D Difficulty: DifficultRationale: 300($60) = $10,800 investment; 300($60) = $18,000 X = $7,200 loan;Proceeds after selling stock and repaying loan: $13,500 - $7,200 = $6,300; Return = ($6,300 - $10,800)/$10,800 = - %.18. Assume you sell short 100 shares of common stock at $45 per share, with initialmargin at 50%. What would be your rate of return if you repurchase the stock at$40/share The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction.A) 20%B) 25%C) 22%D) 77%E) none of the aboveAnswer: C Difficulty: ModerateRationale: Profit on stock = ($45 - $40) * 100 = $500, $500/$2,250 (initial investment) = %.19. You sold short 300 shares of common stock at $55 per share. The initial margin is60%. At what stock price would you receive a margin call if the maintenance margin is 35%A) $51B) $65C) $35D) $40E) none of the aboveAnswer: B Difficulty: DifficultRationale: Equity = 300($55) * = $26,400; = ($26,400 - 300P)/300P; 105P = 26,400 - 300P; 405P = 26,400; P = $20. Assume you sold short 100 shares of common stock at $50 per share. The initialmargin is 60%. What would be the maintenance margin if a margin call is made at a stock price of $60A) 40%B) 33%C) 35%D) 25%E) none of the aboveAnswer: B Difficulty: DifficultRationale: $5,000 X = $8,000; [$8,000 - 100($60)]/100($60) = 33%.21. Specialists on stock exchanges perform the following functionsA) Act as dealers in their own accounts.B) Analyze the securities in which they specialize.C) Provide liquidity to the market.D) A and B.E) A and C.Answer: E Difficulty: ModerateRationale: Specialists are both brokers and dealers and provide liquidity to themarket; they are not analysts.22. Shares for short transactionsA) are usually borrowed from other brokers.B) are typically shares held by the short seller's broker in street name.C) are borrowed from commercial banks.D) B and C.E) none of the above.Answer: B Difficulty: ModerateRationale: Typically, the only source of shares for short transactions is those held by the short seller's broker in street name; often these are margined shares.23. Which of the following orders is most useful to short sellers who want to limit theirpotential lossesA) Limit orderB) Discretionary orderC) Limit-loss orderD) Stop-buy orderE) None of the aboveAnswer: D Difficulty: ModerateRationale: By issuing a stop-buy order, the short seller can limit potential losses by assuring that the stock will be purchased (and the short position closed) if the price increases to a certain level.24. Shelf registrationA) is a way of placing issues in the primary market.B) allows firms to register securities for sale over a two-year period.C) increases transaction costs to the issuing firm.D) A and B.E) A and C.Answer: D Difficulty: EasyRationale: Shelf registration lowers transactions costs to the firm as the firm may register issues for a longer period than in the past, and thus requires the services of the investment banker less frequently.25. NASDAQ subscriber levelsA) permit those with the highest level, 3, to "make a market" in the security.B) permit those with a level 2 subscription to receive all bid and ask quotes, but notto enter their own quotes.C) permit level 1 subscribers to receive general information about prices.D) include all OTC stocks.E) A, B, and C.Answer: E Difficulty: EasyRationale: NASDAQ links dealers in a loosely organized network with different levels of access to meet different needs.26. You want to buy 100 shares of Hotstock Inc. at the best possible price as quickly aspossible. You would most likely place aA) stop-loss orderB) stop-buy orderC) market orderD) limit-sell orderE) limit-buy orderAnswer: C Difficulty: EasyRationale: A market order is for immediate execution at the best possible price. 27. You want to purchase XYZ stock at $60 from your broker using as little of your ownmoney as possible. If initial margin is 50% and you have $3000 to invest, how many shares can you buyA) 100 sharesB) 200 sharesC) 50 sharesD) 500 sharesE) 25 sharesAnswer: A Difficulty: ModerateRationale: .5 = [(Q * $60)-$3,000] / (Q * $60); $30Q = $60Q-$3,000; $30Q = $3,000;Q=100.28. A sale by IBM of new stock to the public would be a(n)A) short sale.B) seasoned new issue offering.C) private placement.D) secondary market transaction.E) initial public offering.Answer: B Difficulty: EasyRationale: When a firm whose stock already trades in the secondary market issues new shares to the public this is referred to as a seasoned new issue.29. The finalized registration statement for new securities approved by the SEC is calledA) a red herringB) the preliminary statementC) the prospectusD) a best-efforts agreementE) a firm commitmentAnswer: C Difficulty: ModerateRationale: The prospectus is the finalized registration statement approved by the SEC.30. The minimum market value required for an initial listing on the New York StockExchange isA) $2,000,000B) $2,500,000C) $1,100,000D) $60,000,000E) 100,000,000Answer: E Difficulty: ModerateRationale: See Table .31. In 2005, the price of a seat on the NYSE reached a high ofA) $1,000,000B) $4,000,000C) $1,750,000D) $2,225,000E) $3,000,000Answer: B Difficulty: ModerateRationale: See Table .32. The floor broker is best described asA) an independent member of the exchange who owns a seat and handles overloadwork for commission brokers.B) someone who makes a market in one or more securities.C) a representative of a brokerage firm who is on the floor of the exchange toexecute trade.D) a frequent trader who performs no public function but executes trades forhimself.E) any counter party to a trade executed on the floor of the exchange.Answer: A Difficulty: EasyRationale: The floor broker is an independent member of the exchange who handles work for commission brokers when they have too many orders to handle.33. You sell short 100 shares of Loser Co. at a market price of $45 per share. Yourmaximum possible loss isA) $4500B) unlimitedC) zeroD) $9000E) cannot tell from the information givenAnswer: B Difficulty: ModerateRationale: A short seller loses money when the stock price rises. Since there is noupper limit on the stock price, the maximum theoretical loss is unlimited.34. You buy 300 shares of Qualitycorp for $30 per share and deposit initial margin of 50%.The next day Qualitycorp's price drops to $25 per share. What is your actual marginA) 50%B) 40%C) 33%D) 60%E) 25%Answer: B Difficulty: ModerateRationale: AM = [300 ($25) - .5 (300) ($30) ] / [300 ($25)] = .4035. When a firm markets new securities, a preliminary registration statement must befiled withA) the exchange on which the security will be listed.B) the Securities and Exchange Commission.C) the Federal Reserve.D) all other companies in the same line of business.E) the Federal Deposit Insurance Corporation.Answer: B Difficulty: EasyRationale: The SEC requires the registration statement and must approve it before the issue can take place.36. In a typical underwriting arrangement the investment banking firmI)sells shares to the public via an underwriting syndicate.II)purchases the securities from the issuing company.III)assumes the full risk that the shares may not be sold at the offering price.IV)agrees to help the firm sell the issue to the public but does not actually purchase the securities.A) I, II, and IIIB) I, III, and IVC) I and IVD) II and IIIE) I and IIAnswer: A Difficulty: ModerateRationale: A typical underwriting arrangement is made on a firm commitment basis.37. Which of the following is true regarding private placements of primary securityofferingsA) Extensive and costly registration statements are required by the SEC.B) For very large issues, they are better suited than public offerings.C) They trade in secondary markets.D) The shares are sold directly to a small group of institutional or wealthy investors.E) They have greater liquidity than public offerings.Answer: D Difficulty: ModerateRationale: Firms can save on registration costs, but the result is that the securities cannot trade in the secondary markets and therefore are less liquid. Public offerings are better suited for very large issues.38. A specialist on the AMEX Stock Exchange is offering to buy a security for $. A brokerin Oklahoma City wants to sell the security for his client. The Intermarket Trading System shows a bid price of $ on the NYSE. What should the broker doA) Route the order to the AMEX Stock Exchange.B) Route the order to the NYSE.C) Call the client to see if she has a preference.D) Route half of the order to AMEX and the other half to the NYSE.E) It doesn't matter - he should flip a coin and go with it.Answer: A Difficulty: ModerateRationale: The broker should try to obtain the best price for his client. Since theclient wants to sell shares and the bid price is higher on the AMEX, he should route the order there.39. You sold short 100 shares of common stock at $45 per share. The initial margin is50%. Your initial investment wasA) $4,800.B) $12,000.C) $2,250.D) $7,200.E) none of the above.Answer: C Difficulty: ModerateRationale: 100 shares * $45/share * = $4,500 * = $2,25040. You sold short 150 shares of common stock at $27 per share. The initial margin is45%. Your initial investment wasA) $4,.B) $12,.C) $2,.D) $1,.E) none of the above.Answer: D Difficulty: ModerateRationale: 150 shares * $27/share * = $4,050 * = $1,41. You purchased 100 shares of XON common stock on margin at $60 per share.Assume the initial margin is 50% and the maintenance margin is 30%. Below what stock price level would you get a margin call Assume the stock pays no dividend;ignore interest on margin.A) $B) $C) $D) $E) none of the aboveAnswer: A Difficulty: DifficultRationale: 100 shares * $60 * .5 = $6,000 * = $3,000 (loan amount); = (100P -$3,000)/100P; 30P = 100P - $3,000; -70P = -$3,000; P = $42. You purchased 1000 shares of CSCO common stock on margin at $19 per share.Assume the initial margin is 50% and the maintenance margin is 30%. Below what stock price level would you get a margin call Assume the stock pays no dividend;ignore interest on marginA) $B) $C) $D) $E) none of the aboveAnswer: D Difficulty: DifficultRationale: 1000 shares * $19 * .5 = $19,000 * = $9,500 (loan amount); = (1000P - $9,500)/1000P; 300P = 1000P - $9,500; -700P = -$9,500; P = $43. You purchased 100 shares of common stock on margin at $40 per share. Assume theinitial margin is 50% and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $25 Ignore interest on margin.A)B)C)D)E)Answer: C Difficulty: DifficultRationale: 100 shares * $40/share * = $4,000 * = $2,000 (loan amount); X =[100($25) - $2,000]/100($25); X = .44. You purchased 1000 shares of common stock on margin at $30 per share. Assumethe initial margin is 50% and the stock pays no dividend. What would themaintenance margin be if a margin call is made at a stock price of $24 Ignore interest on margin.A)B)C)D)E)Answer: B Difficulty: DifficultRationale: 1000 shares * $30/share * = $30,000 * = $15,000 (loan amount); X =[1000($24) - $15,000]/1000($24); X = .45. You purchased 100 shares of common stock on margin for $50 per share. The initialmargin is 50% and the stock pays no dividend. What would your rate of return be if you sell the stock at $56 per share Ignore interest on margin.A) 28%B) 33%C) 14%D) 42%E) 24%Answer: E Difficulty: DifficultRationale: 100($50) = $2,500 investment; gain on stock sale = (56-50)(100) = $600;Return = ($600/$2,500) = 24%.46. You purchased 100 shares of common stock on margin for $35 per share. The initialmargin is 50% and the stock pays no dividend. What would your rate of return be if you sell the stock at $42 per share Ignore interest on margin.A) 28%B) 33%C) 14%D) 40%E) 24%Answer: D Difficulty: DifficultRationale: 100($35) = $1,750 investment; gain on stock sale = (42-35)(100) = $700;Return = ($700/$1,750) = 40%.47. Assume you sell short 1000 shares of common stock at $35 per share, with initialmargin at 50%. What would be your rate of return if you repurchase the stock at$25/share The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction.A) %B) %C) %D) %E) none of the aboveAnswer: C Difficulty: ModerateRationale: Profit on stock = ($35 - $25)(1,000) = $10,000; initial investment =($35)(1,000)(.5) = $17,500; return =$10,000/$17,500 = %.48. Assume you sell short 100 shares of common stock at $30 per share, with initialmargin at 50%. What would be your rate of return if you repurchase the stock at$35/share The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction.A) %B) %C) %D) %E) none of the aboveAnswer: A Difficulty: ModerateRationale: Profit on stock = ($30 - $35)(100) = -500; initial investment = ($30)(100)(.5) = $1,500; return =$-500/$1,500 = %.49. You want to purchase GM stock at $40 from your broker using as little of your ownmoney as possible. If initial margin is 50% and you have $4000 to invest, how many shares can you buyA) 100 sharesB) 200 sharesC) 50 sharesD) 500 sharesE) 25 sharesAnswer: B Difficulty: ModerateRationale: you can buy ($4000/$40) = 100 shares outright and you can borrow $4,000 to buy another 100 shares.50. You want to purchase IBM stock at $80 from your broker using as little of your ownmoney as possible. If initial margin is 50% and you have $2000 to invest, how many shares can you buyA) 100 sharesB) 200 sharesC) 50 sharesD) 500 sharesE) 25 sharesAnswer: C Difficulty: ModerateRationale: You can buy ($2000/$80) = 25 shares outright and you can borrow $2,000 to buy another 25 shares.51. Assume you sold short 100 shares of common stock at $40 per share. The initialmargin is 50%. What would be the maintenance margin if a margin call is made at a stock price of $50A) 40%B) 20%C) 35%D) 25%E) none of the aboveAnswer: B Difficulty: DifficultRationale: $4,000 X = $6,000; [$6,000 - 100($50)]/100($50) = 20%.52. Assume you sold short 100 shares of common stock at $70 per share. The initialmargin is 50%. What would be the maintenance margin if a margin call is made at a stock price of $85A) %B) %C) %D) %E) none of the aboveAnswer: D Difficulty: DifficultRationale: $7,000 X = $10,500; [$10,500 - 100($85)]/100($85) = %.53. You sold short 100 shares of common stock at $45 per share. The initial margin is50%. At what stock price would you receive a margin call if the maintenance margin is 35%A) $50B) $65C) $35D) $40E) none of the aboveAnswer: A Difficulty: DifficultRationale: Equity = 100($45) * = $6,750; = ($6,750 - 100P)/100P; 35P = 6,750 - 100P;135P = 6,750; P = $54. You sold short 100 shares of common stock at $75 per share. The initial margin is50%. At what stock price would you receive a margin call if the maintenance margin is 30%A) $B) $C) $D) $E) none of the aboveAnswer: C Difficulty: DifficultRationale: Equity = 100($75) * = $11,250; = ($11,250 - 100P)/100P; 30P = 11,250 - 100P; 130P = 11,250; P = $55. IPO average first-day returns are largest in ____________.A) The United StatesB) DenmarkC) JapanD) ChinaE) FranceAnswer: D Difficulty: EasyRationale: See Figure .56. Despite large first-day IPO returns, average first-year returns in the US areapproximately ____________ percent.A)B)C)D)E)Answer: A Difficulty: EasyRationale: See Figure .57. Average second-year IPO returns in the US are approximately ____________ percent.A)B)C)D)E)Answer: D Difficulty: EasyRationale: See Figure .58. Average third-year IPO returns in the US are approximately ____________ percent.A)B)C)D)E)Answer: E Difficulty: EasyRationale: See Figure .59. The advertisement by the underwriting syndicate to announce an new security issueis referred to as the ____________.A) red herringB) preliminary prospectusC) prospectusD) tombstoneE) headstoneAnswer: D Difficulty: Easy60. The preliminary prospectus is referred to as a ____________.A) red herringB) indentureC) green mailD) tombstoneE) headstoneAnswer: A Difficulty: Easy61. The minimum revenue required for an initial listing on the New York Stock ExchangeisA) $2,000,000B) $25,000,000C) $50,000,000D) $75,000,000E) 100,000,000Answer: D Difficulty: ModerateRationale: See Table .62. The annual dollar volume of trading on the NYSE in 2004 was approximately____________ dollars.A) 12 trillionB) 4 trillionC) 12 billionD) 4 billionE) none of the aboveAnswer: A Difficulty: EasyRationale: See Figure .63. The ____________ had the largest trading volume of securities in 2004.A) NASDAQB) NYSEC) LondonD) TokyoE) Hong KongAnswer: B Difficulty: EasyRationale: See Figure .64. The securities act of 1933 ____________.I)requires full disclosure of relevant information relating to the issue of newsecuritiesII)requires registration of new securitiesIII)requires issuance of a prospectus detailing financial prospects of the firm IV)established the SECV)requires periodic disclosure of relevant financial informationVI)empowers SEC to regulate exchanges, OTC trading, brokers, and dealersA) I, II and IIIB) I, II, III, IV, V, and VIC) I, II and VD) I, II and IVE) IV onlyAnswer: A Difficulty: Easy65. The securities act of 1934 ____________.I)requires full disclosure of relevant information relating to the issue of newsecuritiesII)requires registration of new securitiesIII)requires issuance of a prospectus detailing financial prospects of the firm IV)established the SECV)requires periodic disclosure of relevant financial informationVI)empowers SEC to regulate exchanges, OTC trading, brokers, and dealersA) I, II and IIIB) I, II, III, IV, V, and VIC) I, II and VD) I, II and IVE) IV, V, and VIAnswer: E Difficulty: Easy66. Which of the following is not required under the CFA Institute standards ofprofessional conductA) knowledge of all applicable laws, rules and regulationsB) disclosure of all personal investments whether or not they may conflict with aclient's investmentsC) disclosure of all conflicts to clients and prospectsD) reasonable inquiry into a client's financial situationE) All of the above are required under the CFA Institute standards.Answer: B Difficulty: ModerateRationale: See text box page 87. Personal investments need not be disclosed unless they are in potential or actual conflict.67. According to the CFA Institute Standards of Professional Conduct, CFA Institutemembers have responsibilities to all of the following except:A) the governmentB) the professionC) the publicD) the employerE) clients and prospective clientsAnswer: A Difficulty: ModerateRationale: See "Excerpts from CFA Institute Standards of Professional Conduct" Box, page 87.。

中考英语投资理财知识单选题40题1.If you want to make your money grow, you can choose to invest in stocks, bonds or _____.A.cashB.savingsC.real estateD.insurance答案：C。

“cash”是现金；“savings”是储蓄；“real estate”是房地产；“insurance”是保险。

想要让钱增值，可以选择投资股票、债券或房地产。

现金和储蓄一般不会让钱快速增值，保险主要是提供保障而不是增值手段。

2.Investing in _____ is considered a relatively safe option.A.stocksB.bondsC.futuresD.options答案：B。

“stocks”是股票；“bonds”是债券；“futures”是期货；“options”是期权。

投资债券通常被认为是相对安全的选择。

股票风险相对较高，期货和期权风险更大。

3.When you save money in a bank, you earn _____.A.interestB.dividendsD.profit答案：A。

“interest”是利息；“dividends”是股息；“rent”是租金；“profit”是利润。

把钱存银行会获得利息。

4._____ is a form of investment that involves lending money to a government or a company.A.Stock investmentB.Bond investmentC.Real estate investmentD.Insurance investment答案：B。

“Stock investment”是股票投资；“Bond investment”是债券投资；“Real estate investment”是房地产投资；“Insurance investment”是保险投资。

高一英语投资知识单选题50题1. In the financial market, a ____ is a type of investment that represents ownership in a company.A.stockB.bondC.currencymodity答案解析：A。

选项A“stock”意为股票，代表对公司的所有权。

选项B“bond”是债券。

选项C“currency”是货币。

选项D“commodity”是商品。

题干中提到代表对公司的所有权，所以是股票。

2. A ____ is a debt investment in which an investor loans money to an entity.A.stockB.bondC.mutual fundD.real estate答案解析：B。

选项B“bond”是债券，即一种债务投资，投资者把钱借给一个实体。

选项A“stock”股票不是债务投资。

选项C“mutual fund”共同基金。

选项D“real estate”房地产。

3. Which of the following is not a form of investment?A.savings accountB.credit cardC.stockD.bond答案解析：B。

选项B“credit card”信用卡不是一种投资形式，它是一种消费工具。

选项A“savings account”储蓄账户是一种投资形式，虽然收益较低。

选项C“stock”股票和选项D“bond”债券都是常见的投资形式。

4. A ____ is a collection of stocks, bonds, and other securities.A.mutual fundB.stock optionC.insurance policyD.bank loan答案解析：A。

选项A“mutual fund”共同基金是由股票、债券和其他证券组成的集合。

中考英语投资理财的策略选择练习题30题(答案解析)1.If you want to make your money grow, you can choose to invest in _____.A.stocksB.cashC.debtsD.expenses答案解析：A。

“stocks”是股票，投资股票有可能使钱增值。

“cash”是现金，持有现金通常不会使钱快速增长。

“debts”是债务，投资债务一般风险较大且不一定能使钱增长。

“expenses”是花费，不是投资方式。

本题考查投资理财的基本概念和词汇理解。

2.Which one is a low-risk investment option?A.bondsB.derivativesC.optionsD.futures答案解析：A。

“bonds”是债券，通常被认为是低风险的投资选择。

“derivatives”是衍生品，“options”是期权，“futures”是期货，这三者通常风险较高。

本题考查不同投资方式的风险程度和词汇含义。

3.Saving money in a bank account is a form of _____.A.investmentB.speculationC.gamblingD.wasting答案解析：A。

把钱存在银行账户是一种投资方式，虽然收益可能相对较低但较为稳定。

“speculation”是投机，“gambling”是赌博，“wasting”是浪费，这三个选项都不符合存钱在银行账户的性质。

本题考查对不同行为的性质判断和词汇理解。

4.When you invest in real estate, you are buying _____.A.houses and landB.stocks and bondsC.currenciesmodities答案解析：A。

投资房地产就是购买房子和土地。

“stocks and bonds”是股票和债券，“currencies”是货币，“commodities”是商品。

CHAPTER 2: ASSET CLASSES ANDFINANCIAL INSTRUMENTS1. (d)2. The equivalent taxable yield is: 6.75%/(1 ? 0.34) = 10.23%3. (a) Writing a call entails unlimited potential losses as the stock price rises.4. a. You would have to pay the asked price of:94:30 = 94.9375% of par = $949.375b. The coupon rate is 3.625% implying coupon payments of $36.25 annually or, more precisely, $18.125 semiannually.c. Current yield = (Annual coupon income/price)= $36.25/$949.375 = 0.0382 = 3.82%5. Preferred stock is like long-term debt in that it typically promises a fixed payment each year. In this way, it is a perpetuity. Preferred stock is also like long-term debt in that it does not give the holder voting rights in the firm. Preferred stock is like equity in that the firm is under no contractual obligation to make the preferred stock dividend payments. Failure to make payments does not set off corporate bankruptcy. With respect to the priority of claims to the assets of the firm in the event of corporate bankruptcy, preferred stock has a higher priority than common equity buta lower priority than bonds.6. Money market securities are called ¡°cash equivalents¡± because of their great liquidity. The prices of money market securities are very stable, and they can be converted to cash (i.e., sold) on very short notice and with very low transaction costs.7. P = $10,000/1.02 = $9,803.928. The total before-tax income is $4. After the 70% exclusion for preferred stock dividends, the taxable income is: 0.30 ¡Á $4 = $1.20Therefore, taxes are: 0.30 ¡Á $1.20 = $0.36After-tax income is: $4.00 ¨C $0.36 = $3.64Rate of return is: $3.64/$40.00 = 9.10%9. a. General Dynamics closed today at $112.65, which was $1.56 higher than yesterday¡¯s price. Yesterday¡¯s closing price was: $111.09b. You could buy: $5,000/$112.65 = 44.4 sharesc. Your annual dividend income would be: 44.4 ? $1.60 = $71.04d. The price-to-earnings ratio is 16 and the price is $112.65. Therefore:$112.65/Earnings per share = 16 ? Earnings per share = $7.04 10. a. At t = 0, the value of the index is: (90 + 50 + 100)/3= 80At t = 1, the value of the index is: (95 + 45 + 110)/3 = 83.333 The rate of return is: (83.333/80) ? 1 = 4.17%b. In the absence of a split, Stock C would sell for 110, so the value of the index would be: 250/3 = 83.333After the split, Stock C sells for 55. Therefore, we need to find the divisor (d) such that:83.333 = (95 + 45 + 55)/d ? d = 2.340c. The return is zero. The index remains unchanged because the return for each stock separately equals zero.11. a. Total market value at t = 0 is: ($9,000 + $10,000 + $20,000) = $39,000Total market value at t = 1 is: ($9,500 + $9,000 + $22,000) = $40,500Rate of return = ($40,500/$39,000) ¨C 1 = 3.85%b. The return on each stock is as follows:rA = (95/90) ¨C 1 = 0.0556rB = (45/50) ¨C 1 = ¨C0.10rC = (110/100) ¨C 1 = 0.10The equally-weighted average is:[0.0556 + (-0.10) + 0.10]/3 = 0.0185 = 1.85%12. The after-tax yield on the corporate bonds is: 0.09 ?(1 ¨C 0.30) = 0.0630 = 6.30%Therefore, municipals must offer at least 6.30% yields.13. a. The taxable bond. With a zero tax bracket, the after-tax yield for the taxable bond is the same as the before-tax yield (5%), which is greater than the yield on the municipal bond.b. The taxable bond. The after-tax yield for the taxable bond is:0.05 ? (1 ¨C 0.10) = 4.5%c. You are indifferent. The after-tax yield for the taxable bond is:0.05 ? (1 ¨C 0.20) = 4.0%The after-tax yield is the same as that of the municipal bond.d. The municipal bond offers the higher after-tax yield for investors in tax brackets above 20%.14. Equation (2.5) shows that the equivalent taxable yield is: r = rm /(1 ¨C t)a. 4.00%b. 4.44%c. 5.00%d. 5.71%15. If the after-tax yields are equal, then: 0.056 = 0.08¡Á (1 ¨C t)This implies that t = 0.30 =30%.16. a. The higher coupon bond.b. The call with the lower exercise price.c. The put on the lower priced stock.17. a. You bought the contract when the futures price was 1687.00 (see Figure 2.12). The contract closes at a price of 1700, which is 13.0 higher than the original futures price. The contract multiplier is $100. Therefore, the profit will be:13.0 ? $100 = $1,300b. Open interest is 47,990 contracts.18. a. Since the stock price exceeds the exercise price, you will exercise the call.The payoff on the option will be: $37 ? $35 = $2The option originally cost $1.97, so the profit is: $2.00 ? $1.97 = $0.03Rate of return = $0.03/$1.97 = 0.0152 = 1.52%b. If the exercise price were $32.50, you would exercise the call.The payoff on the option will be: $37.00 ? $32.50 = $4.50 The option originally cost $3.70 so the profit is: $4.50 ? $3.70 = $0.80Rate of return = $0.80/$3.70 = 0.2162 = 21.62%c. If the put has an exercise price of $35, you would not exercise for any stock price of $35 or above. The loss on the put would be the initial cost, $1.30.19. There is always a possibility that the option will be in-the-money at some time prior to expiration. Investors will pay something for this possibility of a positive payoff. 20.Value of call at expiration Initial Cost Profita. 0 8 -8b. 0 8 -8c. 0 8 -8d. 10 8 2e. 20 8 12Value of put at expiration Initial Cost Profita. 20 12 8b. 10 12 -2c. 0 12 -12d. 0 12 -12e. 0 12 -1221. A put option conveys the right to sell the underlying asset at the exercise price. A short position in a futures contract carries an obligation to sell the underlying asset at the futures price.22. A call option conveys the right to buy the underlying asset at the exercise price. A long position in a futures contract carries an obligation to buy the underlying asset at the futures price.23. The spread will widen. Deterioration of the economy increases credit risk, that is, the likelihood of default. Investors will demand a greater premium on debt securities subject to default risk.24. On the day we tried this experiment, 36 of the 50 stocks met this criterion, leading us to conclude that returns on stock investments can be quite volatile.CHAPTER 3: HOW SECURITIES ARE TRADED1. a. In addition to the explicit fees of $70,000, FBN appears to have paid an implicit price in underpricing of the IPO. The underpricing is $3 per share, or a total of $300,000, implying total costs of $370,000.b. No. The underwriters do not capture the part of the costs corresponding to the underpricing. The underpricing may be a rational marketing strategy. Without it, the underwriters would need to spend more resources in order to place the issue with the public. The underwriters would then need to charge higher explicit fees to the issuing firm. The issuing firm may be just as well off paying the implicit issuance cost represented by the underpricing.2. a. In principle, potential losses are unbounded, growing directly with increases in the price of Harrier Group.b. If the stop-buy order can be filled at ¡ê17.50, the maximum possible loss per share is ¡ê1.50. If the price of Harrier Group shares goes above ¡ê17.50, then the stop-buy order would be executed, limiting the losses from the short sale.3. The broker is instructed to attempt to sell your Marks & Spencer stock as soon as the Marks & Spencer stock trades at a bid price of ¡ê7.03 or less. Here, the broker will attempt to execute, but may not be able to sell at ¡ê7.03, since the bid price is now ¡ê7.00. The price at which you sell may be more or less than ¡ê7.03 because the stop-loss becomes a marketorder to sell at current market prices.4. a. €55.50b. €55.25c. The trade will not be executed because the bid price is lower than the price specified in the limit sell order.d. The trade will not be executed because the asked price is greater than the price specified in the limit buy order.5. a. In a specialist market, there can be price improvement in the two market orders. Brokers for each of the market orders (i.e., the buy and the sell orders) can agree to execute a trade inside the quoted spread. For example, they can trade at €55.37,thus improving the price for both customers by €0.12 or €0.13 relative to the quoted bid and asked prices. The buyer gets the stock for €0.13 less than the quoted asked price, and the seller receives €0.12 more for the stock than the quoted bid price.b. Whereas the limit order to buy at €55.30 would not be executed in a dealer market (since the asked price is €55.50), it could be executed in a specialist market. A broker for another customer with an order to sell at market would view the limit buy order as the best bid price; the two brokers could agree to the trade and bring it to the specialist, who would then execute the trade.6. The SuperDot system expedites the flow of orders from exchange members to the specialists. It allows members to send computerized orders directly to the floor of the exchange, which allows the nearly simultaneous sale of each stock in a large portfolio. This capability is necessary for program trading.7. a. You buy 200 shares of Telec om for €8,000. These shares increase in value by 10%, or €800. You pay interest of: 0.08 ? €4,000 = €320The rate of return will be:= 0.12 = 12%b. The value of the 200 shares is 200P. Equity is (200P ¨C €4,000). You will receive a margin call when:= 0.30 ? when P = €28.57 or lower8. a. Initial margin is 50% of €4,000 or €2,000.b. Total assets are €6,000 (€4,000 from the sale of the stock and €2,000 put up for margin). Liabilities are 100P. Therefore, net worth is (€6,000 ¨C 100P). A margin cal l will be issued when:= 0.30 ? when P = €46.15 or higher9. The total cost of the purchase is: $40 ? 500 = $20,000You borrow $5,000 from your broker, and invest $15,000 of your own funds. Your margin account starts out with net worth of $15,000.a. (i) Net worth increases to: ($44 ? 500) ¨C $5,000 = $17,000 Percentage gain = $2,000/$15,000 = 0.1333 = 13.33%(ii) With price unchanged, net worth is unchanged. Percentage gain = zero(iii) Net worth falls to ($36 ? 500) ¨C $5,000 = $13,000 Percentage gain = (¨C$2,000/$15,000) = ¨C0.1333 = ¨C13.33% The relationship between the percentage return and the percentage change in the price of the stock is given by:% return = % change in price ? = % change in price ? 1.333 For example, when the stock price rises from $40 to $44, the percentage change in price is 10%, while the percentage gain for the investor is:% return = 10% ? = 13.33%b. The value of the 500 shares is 500P. Equity is (500P ¨C $5,000). You will receive a margin call when:= 0.25 ? when P = $13.33 or lowerc. The value of the 500 shares is 500P. But now you have borrowed $10,000 instead of $5,000. Therefore, equity is (500P ¨C $10,000). You will receive a margin call when:= 0.25 ? when P = $26.67With less equity in the account, you are far more vulnerable to a margin call.d.By the end of the year, the amount of the loan owed to the broker grows to:$5,000 ? 1.08 = $5,400The equity in your account is (500P ¨C $5,400). Initial equity was $15,000. Therefore, your rate of return after one year is as follows:(i) = 0.1067 = 10.67%(ii) = ¨C0.0267 = ¨C2.67%(iii) = ¨C0.1600 = ¨C16.00%The relationship between the percentage return and the percentage change in the price of Intel is given by:% return =For example, when the stock price rises from $40 to $44, the percentage change in price is 10%, while the percentage gain for the investor is:=10.67%e. The value of the 500 shares is 500P. Equity is (500P ¨C $5,400). You will receive a margin call when:= 0.25 ? when P = $14.40 or lower10. a. The gain or loss on the short position is: (¨C500 ? ?P) Invested funds = $15,000Therefore: rate of return = (¨C500 ? ?P)/15,000The rate of return in each of the three scenarios is:(i) rate of return = (¨C500 ? $?)/$15,000 = ¨C0.1333 = ¨C13.33%(ii) rate of return = (¨C500 ? $?)/$15,000 = 0%(iii) rate of return = [¨C500 ? (¨C$4)]/$15,000 = +0.1333 = +13.33%b. Total assets in the margin account are:$20,000 (from the sale of the stock) + $15,000 (the initial margin) = $35,000Liabilities are 500P. A margin call will be issued when:= 0.25 ? when P = $56 or higherc. With a $1 dividend, the short position must now pay on the borrowed shares: ($1/share ? 500 shares) = $500. Rate of return is now:[(¨C500 ? ?P) ¨C 500]/15,000(i) rate of return = [(¨C500 ? $4) ¨C $500]/$15,000 = ¨C0.1667 = ¨C16.67%(ii) rate of return = [(¨C500 ? $0) ¨C $500]/$15,000 = ¨C0.0333 = ¨C3.33%(iii) rate of return = [(¨C500) ? (¨C$4) ¨C $500]/$15,000 = +0.1000 = +10.00%Total assets are $35,000, and liabilities are (500P + 500).A margin call will be issued when:= 0.25 ? when P = $55.20 or higher11. a. The stock is purchased for: 300 ? £¤ 4,000 = £¤1,200,000The amount borrowed is £¤ 400,000. Therefore, the investor put up equity, or margin, of £¤800,000.b. If the share price falls to £¤3,000, then the value of the stock falls to £¤900,000. By the end of the year, the amount of the loan owed to the broker grows to:£¤ 400,000 ? 1.08 = £¤ 432,000Therefore, the remaining margin in the investor¡¯s account is: £¤900,000 ? £¤ 432,000 = £¤ 468,000The percentage margin is now: £¤ 468,000/£¤900,000 = 0.52 = 52%Therefore, the investor will not receive a margin call.c. The rate of return on the investment over the year is: (Ending equity in the account ? Initial equity)/Initial equity = (£¤ 468,000 ? £¤800,000)/£¤800,000 = ?0.415 = ?41.5%12. a. The initial margin was: 0.50 ? 1,000 ? £¤ 4,000 = £¤2,000,000As a result of the increase in the stock price Old Economy Traders loses:£¤1,000 ? 1,000 = £¤1,000,000Therefore, margin decreases by £¤1,000,000. Moreover, Old Economy Traders must pay the dividend of £¤200 per share to the lender of the shares, so that the margin in the account decreases by an additional £¤200,000. Therefore, the remaining margin is:£¤2,000,000 ¨C £¤1,000,000 ¨C £¤200,000 = £¤800,000b. The percentage margin is: £¤800,000/£¤5,000,000 = 0.16 = 16%So there will be a margin call.c. The equity in the account decreased from £¤2,000,000 to £¤800,000 in one year, for a rate of return of: (?£¤1,200,000/£¤2,000,000) = ?0.60 = ?60%13. Much of what the specialist does (e.g., crossing orders and maintaining the limit order book) can be accomplished by a computerized system. In fact, some exchanges use an automated system for night trading. A more difficult issue to resolve is whether the more discretionary activities of specialists involving trading for their own accounts (e.g., maintaining an orderly market) can be replicated by a computer system.14. a. The buy order will be filled at the best limit-sell order price: $50.25b. The next market buy order will be filled at the next-best limit-sell order price: $51.50c. You would want to increase your inventory. There is considerable buying demand at prices just below $50, indicating that downside risk is limited. In contrast, limit sell orders are sparse, indicating that a moderate buy order could result in a substantial price increase.15. a. You will not receive a margin call. You borrowed $20,000 and with another $20,000 of your own equity you bought 1,000 shares of Disney at $40 per share. At $35 per share, the market value of the stock is $35,000, your equity is $15,000, and the percentage margin is: $15,000/$35,000 = 42.9%Your percentage margin exceeds the required maintenance margin.b. You will receive a margin call when:= 0.35 ? when P = $30.77 or lower16. The dealer sets the bid and asked price. Spreads should be higher on inactively traded stocks and lower on actively traded stocks.17. Answers to this problem will vary.18. a. Over short periods of time, the price of an exchange membership generally increases with increases in trading activity. This makes sense because trading commissions depend on trading volume.b. The price of an exchange membership has risen far less in percentage terms than trading volume. This suggests that the commissions charged to traders on "typical" trades have fallen over time.19. The proceeds from the short sale (net of commission) were:(C$14 ? 100) ¨C C$50 = C$1,350A dividend payment of C$200 was withdrawn from the account. Covering the short sale at C$9 per share cost you (including commission): C$900 + C$50 = C$950Therefore, the value of your account is equal to the net profit on the transaction:C$1350 ¨C C$200 ¨C C$950 = C$200Note that your profit (C$200) equals (100 shares ? profit per share of C$2). Your net proceeds per share was: C$14 selling price of stock¨CC$ 9 repurchase price of stock¨CC$ 2 dividend per share¨CC$ 1 2 trades ? C$0.50 commission per shareC$ 220. (d) The broker will sell, at current market price, after the first transaction at $55 or less.21. (b)22. (d)CHAPTER 4: MUTUAL FUNDS ANDOTHER INVESTMENT COMPANIES1. a. Unit investment trusts: diversification from large-scale investing, lower transaction costs associated with large-scale trading, low management fees, predictable portfolio composition, guaranteed low portfolio turnover rate.b.Open-end funds: diversification from large-scale investing, lower transaction costs associated with large-scale trading,professional management that may be able to take advantage of buy or sell opportunities as they arise, record keeping.c. Individual stocks and bonds: No management fee, realization of capital gains or losses can be coordinated with investor¡¯s personal tax situation, portfolio can be designed to investor¡¯s specific risk profile.2. Balanced funds keep relatively stable proportions of funds invested in each asset class. They are meant as convenient instruments to provide participation in a range of asset classes. Life-cycle funds are balanced funds whose asset mix generally depends on the age of the investor. Aggressive life-cycle funds, with larger investments in equities, are marketed to younger investors, while conservative life-cycle funds, with larger investments in fixed-income securities, are designed for older investors. Asset allocation funds, in contrast, may vary the proportions invested in each asset class by large amounts as predictions of relative performance across classes vary. Asset allocation funds therefore engage in more aggressive market timing.3. Open-end funds are obligated to redeem investor's shares at net asset value, and thus must keep cash or cash-equivalent securities on hand in order to meet potential redemptions. Closed-end funds do not need the cash reserves because there are no redemptions for closed-end funds. Investors in closed-end funds sell their shares when they wish to cash out.4. The unit investment trust should have lower operating expenses. Because the investment trust portfolio is fixed once the trust is established, it does not have to pay portfolio managers to constantly monitor and rebalance the portfolio as perceived needs or opportunities change. Because the portfolio is fixed, the unit investment trust also incurs virtually no trading costs.5. The offering price includes a 6% front-end load, or sales commission, meaning that every dollar paid results in only €0.94 going toward purchase of shares. Therefore:Offering price = = €13.306. NAV = offering price ? (1 ¨C load) = SFr14.50 ???.95 = SFr13.787. Stock Value held by fundA $ 7,000,000B 12,000,000C 8,000,000D 15,000,000Total $42,000,000Net asset value = = $10.498. Value of stocks sold and replaced = $15,000,000Turnover rate = = 0.357 = 35.7%9. a. £¤3,940b. Premium (or discount) = = = ¨C0.086 = -8.6%The fund sells at an 8.6% discount from NAV.10. Rate of return =11. a. Start-of-year price: P0 = ¡ê12.00 ? 1.02 = ¡ê12.24 End-of-year price: P1 = ¡ê12.10 ? 0.93 = ¡ê11.25Although NAV increased by ¡ê0.10, the price of the fund decreased by ¡ê0.99.Rate of return =b. An investor holding the same portfolio as the manager would have earned a rate of return based on the increase in the NAV of the portfolio:Rate of return =12. a. Empirical research indicates that past performance of mutual funds is not highly predictive of future performance, especially for better-performing funds. While there may be some tendency for the fund to be an above average performer next year, it is unlikely to once again be a top 10% performer.b. On the other hand, the evidence is more suggestive of a tendency for poor performance to persist. This tendency is probably related to fund costs and turnover rates. Thus if the fund is among the poorest performers, investors would be concerned that the poor performance will persist.13. NAV0 = €200,000,000/10,000,000 = €20Dividends per share = €2,000,000/10,000,000 = €0.20NAV1 is based on the 8% price gain, less the 1% 12b-1 fee: NAV1 = €20 ? 1.08 ? (1 ¨C 0.01) = €21.384Rate of return = = 0.0792 = 7.92%14. The excess of purchases over sales must be due to new inflows into the fund. Therefore, $400 million of stock previously held by the fund was replaced by new holdings. So turnover is: $400/$2,200 = 0.182 = 18.2%15. Fees paid to investment managers were: 0.007 ? $2.2 billion = $15.4 millionSince the total expense ratio was 1.1% and the management fee was 0.7%, we conclude that 0.4% must be for other expenses. Therefore, other administrative expenses were: 0.004 ? $2.2 billion = $8.8 million16. As an initial approximation, your return equals the return on the shares minus the total of the expense ratio and purchase costs: 12% ? 1.2% ? 4% = 6.8%But the precise return is less than this because the 4% load is paid up front, not at the end of the year.To purchase the shares, you would have had to invest: $20,000/(1 ? 0.04) = $20,833The shares increase in value from $20,000 to: $20,000 ? (1.12 ?0.012) = $22,160The rate of return is: ($22,160 ? $20,833)/$20,833 = 6.37%17. a. After two years, each dollar invested in a fund witha 4% load and a portfolio return equal to r will grow to: $0.96 ?(1 + r ¨C 0.005)2Each dollar invested in the bank CD will grow to: $1 ? 1.062 If the mutual fund is to be the better investment, then the portfolio return (r) must satisfy:0.96 ? (1 + r ¨C 0.005)2 > 1.0620.96 ? (1 + r ¨C 0.005)2 > 1.1236(1 + r ¨C 0.005)2 > 1.17041 + r ¨C 0.005 > 1.08191 + r > 1.0869Therefore: r > 0.0869 = 8.69%b. If you invest for six years, then the portfolio return must satisfy:0.96 ? (1 + r ¨C 0.005)6 > 1.066 = 1.4185(1 + r ¨C 0.005)6 > 1.47761 + r ¨C 0.005 > 1.06721 + r > 1.0722r > 7.22%The cutoff rate of return is lower for the six-year investment because the ¡°fixed cost¡± (i.e., the one-time front-end load) is spread out over a greater number of years.c. With a 12b-1 fee instead of a front-end load, the portfolio must earn a rate of return (r) that satisfies:1 + r ¨C 0.005 ¨C 0.0075 > 1.06In this case, r must exceed 7.25% regardless of the investment horizon.18. The turnover rate is 50%. This means that, on average, 50% of the portfolio is sold and replaced with other securities each year. Trading costs on the sell orders are 0.4%; and the buy orders to replace those securities entail another 0.4% in trading costs. Total trading costs will reduce portfolio returns by: 2 ? 0.4% ? 0.50 = 0.4%19. For the bond fund, the fraction of portfolio income given up to fees is:= 0.150 = 15.0%For the equity fund, the fraction of investment earnings given up to fees is:= 0.050 = 5.0%Fees are a much higher fraction of expected earnings for the bond fund, and therefore may be a more important factor in selecting the bond fund.This may help to explain why unmanaged unit investment trusts are concentrated in the fixed income market. The advantages of unit investment trusts are low turnover and low trading costs and management fees. This is a more important concern to bond-market investors.20. Suppose you have $1,000 to invest. The initial investment in Class A shares is $940 net of the front-end load. After four years, your portfolio will be worth: $940 ? (1.10)4 = $1,376.25Class B shares allow you to invest the full $1,000, but your investment performance net of 12b-1 fees will be only 9.5%, and you will pay a 1% back-end load fee if you sell after four years. Your portfolio value after four years will be:$1,000 ? (1.095)4 = $1,437.66After paying the back-end load fee, your portfolio value will be:$1,437.66 ???.99 = $1,423.28Class B shares are the better choice if your horizon is four years.With a fifteen-year horizon, the Class A shares will be worth: $940 ? (1.10)15 = $3,926.61For the Class B shares, there is no back-end load in this case since the horizon is greater than five years. Therefore, the value of the Class B shares will be:$1,000 ? (1.095)15 = $3,901.32At this longer horizon, Class B shares are no longer the better choice. The effect of Class B's 0.5% 12b-1 fees accumulates over time and finally overwhelms the 6% load charged to Class A investors.21. Suppose that finishing in the top half of all portfolio managers is purely luck, and that the probability of doing so in any year is exactly ?. Then the probability that any particular manager would finish in the top half of the sample five years in a row is (?)5 = 1/32. We would then expect tofind that [350 ? (1/32)] = 11 managers finish in the top half for each of the five consecutive years. This is precisely what we found. Thus, we should not conclude that the consistent performance after five years is proof of skill. We would expect to find eleven managers exhibiting precisely this level of "consistency" even if performance is due solely to luck.CHAPTER 5: LEARNING ABOUT RETURN AND RISKFROM THE HISTORICAL RECORD1. a. The ¡°Inflation-Plus¡± CD is the safer investment because it guarantees the purchasing power of the investment. Using the approximation that the real rate equals the nominal rate minus the inflation rate, the CD provides a real rate of3.5% regardless of the inflation rate.b. The expected return depends on the expected rate of inflation over the next year. If the expected rate of inflation is less than 3.5% then the conventional CD offers a higher real return than the Inflation-Plus CD; if the expected rate of inflation is greater than 3.5%, then the opposite is true.c. If you expect the rate of inflation to be 3% over the next year, then the conventional CD offers you an expected real rate of return of 4%, which is 0.5% higher than the real rate on the inflation-protected CD. But unless you know that inflation will be 3% with certainty, the conventional CD is also riskier. The question of which is the better investment then depends on your attitude towards risk versus return. You might choose to diversify and invest part of your funds in each.d. No. We cannot assume that the entire difference between the risk-free nominal rate (on conventional CDs) of 7% and the real risk-free rate (on inflation-protected CDs) of 3.5% is the expected rate of inflation. Part of the difference is probably a risk premium associated with the uncertainty surrounding the real rate of return on the conventional CDs. This implies that the expected rate of inflation is less than 3.5% per year.2. From Table 5.3, the average risk premium for large-capitalization U.S. stocks for the period 1926-2005 was: (12.15% ?3.75%) = 8.40% per yearAdding 8.40% to the 6% risk-free interest rate, the expected annual HPR for the S&P 500 stock portfolio is: 6.00% + 8.40% = 14.40%。

中考英语投资理财的风险评估单选题40题1. If you want to invest in stocks, you should know that ____ are not guaranteed.A. profitsB. lossesC. pricesD. dividends答案解析：A。

本题考查股票投资的基本概念。

“profits”（ 利润）在股票投资中是不被保证的，股票的收益具有不确定性。

B选项“losses” 损失），虽然股票投资可能会有损失，但这里说的是不被保证的东西，不是损失本身。

C选项“prices”（价格），股票价格是波动的，但这不是这里表达的重点。

D选项“dividends”（ 股息），股息是公司盈利后分给股东的一部分，也不是这里所表达的不被保证的内容。

2. When you invest in bonds, you usually get a fixed ____ over a certain period.A. rateB. amountC. shareD. value答案解析：A。

在债券投资中，通常会在一定时期内得到一个固定的“rate”（利率）。

B选项“amount”（数量、金额）表述太宽泛，没有准确表达债券的特点。

C选项“share”（份额）通常用于股票等投资概念，不适合债券。

D选项“value” 价值），债券有固定利率而不是固定价值。

3. Funds are managed by ____, who make investment decisions.A. investorsB. brokersC. managersD. bankers答案解析：C。

基金是由“managers”（ 经理）管理的，他们做出投资决策。

A选项“investors” 投资者）是进行投资的人，不是管理基金的。

B选项“brokers” 经纪人）主要是促成交易，而非管理基金。

D选项“bankers” 银行家）与基金管理关系不大。

中考英语投资理财的策略选择练习题40题1<背景文章>Investing and managing finances is an important skill that everyone should learn. Saving money is just the first step. Investing your money wisely can help you grow your wealth and achieve your financial goals.Investment can be defined as putting your money into something with the expectation of getting a return. This could be in the form of stocks, bonds, real estate, or even starting your own business. Each type of investment has its own risks and rewards.The importance of investment cannot be overstated. It allows you to build wealth over time and provides financial security for the future. By investing early, you can take advantage of compound interest and watch your money grow.Investing also helps you beat inflation. Inflation is the increase in the price of goods and services over time. If you just keep your money in a savings account, the value of your money will gradually decrease due to inflation. However, by investing in assets that appreciate in value, you can stay ahead of inflation and protect your purchasing power.Moreover, investment can provide you with passive income. Passive income is money that you earn without actively working for it. For example,if you invest in rental properties, you can earn rental income every month. This can give you financial freedom and allow you to pursue your dreams and interests.In conclusion, understanding the basics of investment and managing your finances is crucial for a secure future. Start learning about investment today and take control of your financial destiny.1. What is investment?A. Spending money.B. Saving money.C. Putting money into something with the expectation of getting a return.D. Buying expensive things.答案：C。

投资学第7版testbank答案09Multiple Choice Questions1. In the context of the Capital Asset Pricing Model (CAPM) the relevantmeasure of risk isA) unique risk.B) beta.C) standard deviation of returns.D) variance of returns.E) none of the above.Answer: B Difficulty: EasyRationale: Once, a portfolio is diversified, the only risk remaining is systematic risk, which is measured by beta.2. According to the Capital Asset Pricing Model (CAPM) a well diversifiedportfolio's rate of return is a function ofA) market riskB) unsystematic riskC) unique risk.D) reinvestment risk.E) none of the above.Answer: A Difficulty: EasyRationale: With a diversified portfolio, the only risk remaining is market, or systematic, risk. This is the only risk that influences return according to the CAPM.3. The market portfolio has a beta ofA) 0.B) 1.C) -1.D) .E) none of the aboveAnswer: B Difficulty: EasyRationale: By definition, the beta of the market portfolio is 1.4. The risk-free rate and the expected market rate of return are and ,respectively. According to the capital asset pricing model (CAPM), the expected rate of return on security X with a beta of is equal toA) .B) .C) .D)E)Answer: D Difficulty: EasyRationale: E(R) = 6% + (12 - 6) = %.5. The risk-free rate and the expected market rate of return are and ,respectively. According to the capital asset pricing model (CAPM), the expected rate of return on a security with a beta of is equal toA)B) .C) .D)E)Answer: A Difficulty: EasyRationale: E(R) = % + - = %.6. Which statement is not true regarding the market portfolioA) It includes all publicly traded financial assets.B) It lies on the efficient frontier.C) All securities in the market portfolio are held in proportion to theirmarket values.D) It is the tangency point between the capital market line and theindifference curve.E) All of the above are true.Answer: D Difficulty: ModerateRationale: The tangency point between the capital market line and the indifference curve is the optimal portfolio for a particular investor.7. Which statement is not true regarding the Capital Market Line (CML)A) The CML is the line from the risk-free rate through the marketportfolio.B) The CML is the best attainable capital allocation line.C) The CML is also called the security market line.D) The CML always has a positive slope.E) The risk measure for the CML is standard deviation.Answer: C Difficulty: ModerateRationale: Both the Capital Market Line and the Security Market Line depict risk/return relationships. However, the risk measure for the CML is standard deviation and the risk measure for the SML is beta (thus C is not true; the other statements are true).8. The market risk, beta, of a security is equal toA) the covariance between the security's return and the market returndivided by the variance of the market's returns.B) the covariance between the security and market returns divided by thestandard deviation of the market's returns.C) the variance of the security's returns divided by the covariancebetween the security and market returns.D) the variance of the security's returns divided by the variance of themarket's returns.E) none of the above.Answer: A Difficulty: ModerateRationale: Beta is a measure of how a security's return covaries with the market returns, normalized by the market variance.9. According to the Capital Asset Pricing Model (CAPM), the expected rateof return on any security is equal toA) R f+ β [E(R M)].B) R f + β [E(R M) - R f].C) β [E(R M) - R f].D) E(R M) + R f.E) none of the above.Answer: B Difficulty: ModerateRationale: The expected rate of return on any security is equal to the risk free rate plus the systematic risk of the security (beta) times themarket risk premium, E(RM - Rf).10. The Security Market Line (SML) isA) the line that describes the expected return-beta relationship forwell-diversified portfolios only.B) also called the Capital Allocation Line.C) the line that is tangent to the efficient frontier of all risky assets.D) the line that represents the expected return-beta relationship.E) the line that represents the relationship between an individualsecurity's return and the market's return.Answer: D Difficulty: ModerateRationale: The SML is a measure of expected return per unit of risk, where risk is defined as beta (systematic risk).11. According to the Capital Asset Pricing Model (CAPM), fairly pricedsecuritiesA) have positive betas.B) have zero alphas.C) have negative betas.D) have positive alphas.E) none of the above.Answer: B Difficulty: ModerateRationale: A zero alpha results when the security is in equilibrium (fairly priced for the level of risk).12. According to the Capital Asset Pricing Model (CAPM), under pricedsecuritiesA) have positive betas.B) have zero alphas.C) have negative betas.D) have positive alphas.E) none of the above.Answer: D Difficulty: Moderate13. According to the Capital Asset Pricing Model (CAPM), over pricedsecuritiesA) have positive betas.B) have zero alphas.C) have negative betas.D) have positive alphas.E) none of the above.Answer: C Difficulty: ModerateRationale: A zero alpha results when the security is in equilibrium (fairly priced for the level of risk).14. According to the Capital Asset Pricing Model (CAPM),A) a security with a positive alpha is considered overpriced.B) a security with a zero alpha is considered to be a good buy.C) a security with a negative alpha is considered to be a good buy.D) a security with a positive alpha is considered to be underpriced.E) none of the above.Answer: D Difficulty: ModerateRationale: A security with a positive alpha is one that is expected to yield an abnormal positive rate of return, based on the perceived risk of the security, and thus is underpriced.15. According to the Capital Asset Pricing Model (CAPM),which one of thefollowing statements is falseA) The expected rate of return on a security decreases in directproportion to a decrease in the risk-free rate.B) The expected rate of return on a security increases as its betaincreases.C) A fairly priced security has an alpha of zero.D) In equilibrium, all securities lie on the security market line.E) All of the above statements are true.Answer: A Difficulty: ModerateRationale: Statements B, C, and D are true, but statement A is false.16. In a well diversified portfolioA) market risk is negligible.B) systematic risk is negligible.C) unsystematic risk is negligible.D) nondiversifiable risk is negligible.E) none of the above.Answer: C Difficulty: ModerateRationale: Market, or systematic, or nondiversifiable, risk is present in a diversified portfolio; the unsystematic risk has been eliminated.17. Empirical results regarding betas estimated from historical data indicatethatA) betas are constant over time.B) betas of all securities are always greater than one.C) betas are always near zero.D) betas appear to regress toward one over time.E) betas are always positive.Answer: D Difficulty: ModerateRationale: Betas vary over time, betas may be negative or less than one, betas are not always near zero; however, betas do appear to regress toward one over time.18. Your personal opinion is that a security has an expected rate of returnof . It has a beta of . The risk-free rate is and the market expected rate of return is . According to the Capital Asset Pricing Model, this security isA) underpriced.B) overpriced.C) fairly priced.D) cannot be determined from data provided.E) none of the above.Answer: C Difficulty: ModerateRationale: 11% = 5% + (9% - 5%) = %; therefore, the security is fairly priced.19. The risk-free rate is 7 percent. The expected market rate of return is15 percent. If you expect a stock with a beta of to offer a rate of returnof 12 percent, you shouldA) buy the stock because it is overpriced.B) sell short the stock because it is overpriced.C) sell the stock short because it is underpriced.D) buy the stock because it is underpriced.E) none of the above, as the stock is fairly priced.Answer: B Difficulty: ModerateRationale: 12% < 7% + (15% - 7%) = %; therefore, stock is overpriced and should be shorted.20. You invest $600 in a security with a beta of and $400 in another securitywith a beta of . The beta of the resulting portfolio isA)B)C)D)E)Answer: D Difficulty: ModerateRationale: + = .21. A security has an expected rate of return of and a beta of . The marketexpected rate of return is and the risk-free rate is . The alpha of the stock isA) %.B) %.C) %.D) %.E) none of the above.Answer: A Difficulty: ModerateRationale: 10% - [5% +(8% - 5%)] = %.22. Your opinion is that CSCO has an expected rate of return of . It has abeta of . The risk-free rate is and the market expected rate of return is . According to the Capital Asset Pricing Model, this security isA) underpriced.B) overpriced.C) fairly priced.D) cannot be determined from data provided.E) none of the above.Answer: B Difficulty: ModerateRationale: % - 4% + % - 4%) = %; therefore, the security is overpriced.23. Your opinion is that CSCO has an expected rate of return of . It has abeta of . The risk-free rate is and the market expected rate of return is . According to the Capital Asset Pricing Model, this security isA) underpriced.B) overpriced.C) fairly priced.D) cannot be determined from data provided.E) none of the above.Answer: C Difficulty: ModerateRationale: % - 4% + % - 4%) = %; therefore, the security is fairly priced.24. Your opinion is that CSCO has an expected rate of return of . It has abeta of . The risk-free rate is and the market expected rate of return is . According to the Capital Asset Pricing Model, this security isA) underpriced.B) overpriced.C) fairly priced.D) cannot be determined from data provided.E) none of the above.Answer: A Difficulty: ModerateRationale: 15% - 4% + % - 4%) = %; therefore, the security is under priced.25. Your opinion is that Boeing has an expected rate of return of . It hasa beta of . The risk-free rate is and the market expected rate of returnis . According to the Capital Asset Pricing Model, this security isA) underpriced.B) overpriced.C) fairly priced.D) cannot be determined from data provided.E) none of the above.Answer: A Difficulty: ModerateRationale: % - 4% + (10% - 4%) = %; therefore, the security is under priced.26. Your opinion is that Boeing has an expected rate of return of . It hasa beta of . The risk-free rate is and the market expected rate of returnis . According to the Capital Asset Pricing Model, this security isA) underpriced.B) overpriced.C) fairly priced.D) cannot be determined from data provided.E) none of the above.Answer: C Difficulty: ModerateRationale: % - 4% + (10% - 4%) = %; therefore, the security is fairly priced.27. Your opinion is that Boeing has an expected rate of return of . It hasa beta of . The risk-free rate is and the market expected rate of returnis . According to the Capital Asset Pricing Model, this security isA) underpriced.B) overpriced.C) fairly priced.D) cannot be determined from data provided.E) none of the above.Answer: C Difficulty: ModerateRationale: % - 4% + (10% - 4%) = %; therefore, the security is overpriced.28. The risk-free rate is 4 percent. The expected market rate of return is11 percent. If you expect CAT with a beta of to offer a rate of returnof 10 percent, you shouldA) buy stock X because it is overpriced.B) sell short stock X because it is overpriced.C) sell stock short X because it is underpriced.D) buy stock X because it is underpriced.E) none of the above, as the stock is fairly priced.Answer: B Difficulty: ModerateRationale: 10% < 4% + (11% - 4%) = %; therefore, stock is overpriced and should be shorted.29. The risk-free rate is 4 percent. The expected market rate of return is11 percent. If you expect CAT with a beta of to offer a rate ofreturnof 11 percent, you shouldA) buy stock X because it is overpriced.B) sell short stock X because it is overpriced.C) sell stock short X because it is underpriced.D) buy stock X because it is underpriced.E) none of the above, as the stock is fairly priced.Answer: E Difficulty: ModerateRationale: 11% = 4% + (11% - 4%) = %; therefore, stock is fairly priced.30. The risk-free rate is 4 percent. The expected market rate of return is11 percent. If you expect CAT with a beta of to offer a rate of returnof 13 percent, you shouldA) buy stock X because it is overpriced.B) sell short stock X because it is overpriced.C) sell stock short X because it is underpriced.D) buy stock X because it is underpriced.E) none of the above, as the stock is fairly priced.Answer: D Difficulty: ModerateRationale: 13% > 4% + (11% - 4%) = %; therefore, stock is under priced.31. You invest 55% of your money in security A with a beta of and the restof your money in security B with a beta of . The beta of the resulting。

中考英语投资理财的风险评估单选题40题1. If you want to invest your money in a relatively safe way, you can choose ____.A. stocksB. fundsC. bonds答案：C。

解析：本题考查不同投资方式的特点。

“bonds”（ 债券）通常被认为是相对安全的投资方式。

“stocks”（ 股票）风险相对较高，“funds”（ 基金）风险程度介于债券和股票之间。

这里主要涉及到词汇的基本含义以及对不同投资概念风险程度的理解。

2. ____ are shares in the ownership of a company.A. BondsB. FundsC. Stocks答案：C。

解析：本题考查股票的定义。

“Stocks”的定义是公司所有权的份额。

“Bonds”是债券，“Funds”是基金，与公司所有权份额的定义不符。

这题主要是对词汇含义的考查。

3. My father put some money in a ____, which is managed by a professional.A. stockB. fundC. bond答案：B。

解析：本题描述的场景是钱由专业人士管理。

“fund”（ 基金）是由专业人士管理进行投资的。

“stock”（股票）是个人直接购买公司股份，“bond”（债券）主要是购买债券凭证，通常不是由专业人士像管理基金那样管理。

这里涉及到对不同投资方式管理模式的理解。

4. Which of the following is a long - term investment?A. A short - term fundB. A corporate bondC. A penny stock答案：B。

解析：“corporate bond” 公司债券）通常是一种长期投资。

“short - term fund”（ 短期基金）从名字就可知是短期投资。

中考英语投资理财的策略选择单选题40题1.If you want to save money, you can put it in a _____.A.bankB.stock marketC.shopping mallD.restaurant答案：A。

本题考查投资理财的基本场所。

bank 是银行，可以存钱；stock market 是证券市场，主要是进行股票等投资，不是单纯存钱；shopping mall 是购物中心；restaurant 是饭店。

想存钱应该选择银行。

2.Investing in stocks can be _____, but also risky.A.profitableB.harmfulelessD.boring答案：A。

本题考查投资股票的特点。

profitable 是有利可图的；harmful 是有害的；useless 是无用的；boring 是无聊的。

投资股票可能会带来收益，但也有风险。

3.A savings account in a bank usually offers _____ interest rate.A.highB.lowC.noD.variable答案：B。

本题考查银行储蓄账户的利率特点。

一般来说，储蓄账户的利率比较低。

high 是高的；no 是没有；variable 是可变的。

4.When you invest in bonds, you are lending money to _____.paniesernmentC.banksD.stores答案：A 或B。

本题考查债券投资的对象。

投资债券可以是借给公司或者政府。

banks 是银行，stores 是商店，一般不是债券的发行主体。

5.Which is NOT a way to manage your money?A.Spending all your money on luxury goods.B.Saving a part of your income.C.Investing in different assets.D.Making a budget.答案：A。

中考英语投资理财的策略选择练习题30题答案解析1.If you want to save money, you can put it in a _____.A.bankB.shopC.restaurantD.hotel答案解析：A。

如果你想存钱，应该把钱放在银行。

选项B“shop”是商店，C“restaurant”是餐馆，D“hotel”是酒店，都不是存钱的地方。

2.When you invest money, you hope to get a good _____.A.interestB.priceC.costD.value答案解析：A。

投资的时候希望得到好的利息。

选项B“price”是价格，C“cost”是成本，D“value”是价值，都不符合投资得到回报的意思。

3.To manage your money well, you need to make a _____.A.planB.listC.bookD.card答案解析：A。

要管理好钱需要制定一个计划。

选项B“list”是清单，C“book”是书，D“card”是卡片，都不是管理钱的关键。

4.A savings account is a good place to _____ your money.A.keepB.spendC.wasteD.lose答案解析：A。

储蓄账户是存钱的好地方。

选项B“spend”是花费，C“waste”是浪费，D“lose”是丢失，都不符合题意。

5.If you want to make more money, you can consider _____.A.savingB.spendingC.wastingD.losing答案解析：A。

如果想赚更多钱，可以考虑存钱。

选项B“spending”是花钱，C“wasting”是浪费，D“losing”是丢失，都不能让钱变多。

6.Banks offer different _____ for saving and investing.A.choicesB.colorsC.sizesD.shapes答案解析：A。

中考英语投资理财的策略选择单选题40题1.If you want to save money safely, you can choose to put it in a _____.A.stock marketB.bank depositC.venture capitalD.foreign exchange market答案：B。

bank deposit 是银行存款，存钱安全。

stock market 是股票市场，有风险。

venture capital 是风险投资。

foreign exchange market 是外汇市场，也有风险。

2.Which one is not a common investment method?A.Buying bondsB.Putting money in a piggy bankC.Investing in real estateD.Trading futures答案：B。

putting money in a piggy bank 只是存钱不是投资方法。

buying bonds 买债券是投资方法。

investing in real estate 投资房地产是投资方法。

trading futures 交易期货是投资方法。

3.When you invest in stocks, you are actually buying a part of a _____.panyB.bankernmentD.charity organization答案：A。

invest in stocks 买股票是买公司的一部分。

bank 银行。

government 政府。

charity organization 慈善组织。

4.Which of the following is a low-risk investment?A.Speculating in goldB.Investing in startupsC.Buying government bondsD.Playing the lottery答案：C。

中考英语投资理财的风险评估单选题40题1. If you want a relatively stable investment with fixed interest, you may choose ____.A. stocksB. bondsC. fundsD. real estate答案：B。

解析：stocks（股票）风险较高，收益不稳定；bonds （债券）通常有固定的利息，相对比较稳定，符合题意；funds（（基金）收益受多种因素影响，稳定性不如债券；real estate（（房地产）投资金额大，流动性较差，也不是以固定利息为收益特点的投资类型。

2. Which investment has the highest potential for high returns but also comes with high risks?A. BondsB. Savings accountsC. StocksD. Government funds答案：C。

解析：Bonds（（债券）风险和收益相对较为平稳；Savings accounts（（储蓄账户）收益低，风险也低；Stocks（（股票）价格波动大，可能带来很高的回报，但同时风险也非常高；Government funds（政府基金）风险相对较低，收益也不会像股票那样有很高的潜力。

3. ____ are often managed by professional managers and pool moneyfrom many investors.A. StocksB. BondsC. FundsD. Gold答案：C。

解析：Stocks（（股票）是企业发行的股权凭证，不是由专业经理集中管理众多投资者资金的形式；Bonds（债券）是一种债务凭证；Funds（（基金）是由专业经理管理，汇集众多投资者资金进行投资的；Gold（黄金）是一种实物投资，不存在这种管理形式。

Multiple Choice Questions1. The term structure of interest rates is:A) The relationship between the rates of interest on all securities.B) The relationship between the interest rate on a security and its time to maturity.C) The relationship between the yield on a bond and its default rate.D) All of the above.E) None of the above.Answer: B Difficulty: EasyRationale: The term structure of interest rates is the relationship between two variables, years and yield to maturity (holding all else constant).2. The yield curve shows at any point in time:A) The relationship between the yield on a bond and the duration of the bond.B) The relationship between the coupon rate on a bond and time to maturity of thebond.C) The relationship between yield on a bond and the time to maturity on the bond.D) All of the above.E) None of the above.Answer: C Difficulty: Easy3. An inverted yield curve implies that:A) Long-term interest rates are lower than short-term interest rates.B) Long-term interest rates are higher than short-term interest rates.C) Long-term interest rates are the same as short-term interest rates.D) Intermediate term interest rates are higher than either short- or long-term interestrates.E) none of the above.Answer: A Difficulty: EasyRationale: The inverted, or downward sloping, yield curve is one in which short-term rates are higher than long-term rates. The inverted yield curve has been observedfrequently, although not as frequently as the upward sloping, or normal, yield curve.4. An upward sloping yield curve is a(n) _______ yield curve.A) normal.B) humped.C) inverted.D) flat.E) none of the above.Answer: A Difficulty: EasyRationale: The upward sloping yield curve is referred to as the normal yield curve, probably because, historically, the upward sloping yield curve is the shape that has been observed most frequently.5. According to the expectations hypothesis, a normal yield curve implies thatA) interest rates are expected to remain stable in the future.B) interest rates are expected to decline in the future.C) interest rates are expected to increase in the future.D) interest rates are expected to decline first, then increase.E) interest rates are expected to increase first, then decrease.Answer: C Difficulty: EasyRationale: An upward sloping yield curve is based on the expectation that short-term interest rates will increase.6. Which of the following is not proposed as an explanation for the term structure ofinterest ratesA) The expectations theory.B) The liquidity preference theory.C) The market segmentation theory.D) Modern portfolio theory.E) A, B, and C.Answer: D Difficulty: EasyRationale: A, B, and C are all theories that have been proposed to explain the term structure.7. The expectations theory of the term structure of interest rates states thatA) forward rates are determined by investors' expectations of future interest rates.B) forward rates exceed the expected future interest rates.C) yields on long- and short-maturity bonds are determined by the supply and demandfor the securities.D) all of the above.E) none of the above.Answer: A Difficulty: EasyRationale: The forward rate equals the market consensus expectation of future short interest rates.8. Which of the following theories state that the shape of the yield curve is essentiallydetermined by the supply and demands for long-and short-maturity bondsA) Liquidity preference theory.B) Expectations theory.C) Market segmentation theory.D) All of the above.E) None of the above.Answer: C Difficulty: EasyRationale: Market segmentation theory states that the markets for different maturities are separate markets, and that interest rates at the different maturities are determined by the intersection of the respective supply and demand curves.9. According to the "liquidity preference" theory of the term structure of interest rates, theyield curve usually should be:A) inverted.B) normal.C) upward slopingD) A and B.E) B and C.Answer: E Difficulty: EasyRationale: According to the liquidity preference theory, investors would prefer to be liquid rather than illiquid. In order to accept a more illiquid investment, investors require a liquidity premium and the normal, or upward sloping, yield curve results.Use the following to answer questions 10-13:Suppose that all investors expect that interest rates for the 4 years will be as follows:10. What is the price of 3-year zero coupon bond with a par value of $1,000A) $B) $C) $D) $E) none of the aboveAnswer: B Difficulty: ModerateRationale: $1,000 / = $11. If you have just purchased a 4-year zero coupon bond, what would be the expected rateof return on your investment in the first year if the implied forward rates stay the same (Par value of the bond = $1,000)A) 5%B) 7%C) 9%D) 10%E) none of the aboveAnswer: A Difficulty: ModerateRationale: The forward interest rate given for the first year of the investment is given as 5% (see table above).12. What is the price of a 2-year maturity bond with a 10% coupon rate paid annually (Parvalue = $1,000)A) $1,092B) $1,054C) $1,000D) $1,073E) none of the aboveAnswer: D Difficulty: ModerateRationale: []1/2 - 1 = 6%; FV = 1000, n = 2, PMT = 100, i = 6, PV = $1,13. What is the yield to maturity of a 3-year zero coupon bondA) %B) %C) %D) %E) none of the aboveAnswer: C Difficulty: ModerateRationale: []1/3 - 1 = .Use the following to answer questions 14-16:The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000.14. What is, according to the expectations theory, the expected forward rate in the thirdyearA) %B) %C) %D) %E) none of the aboveAnswer: C Difficulty: ModerateRationale: / - 1 = 9%15. What is the yield to maturity on a 3-year zero coupon bondA) %B) %C) %D) %E) none of the aboveAnswer: C Difficulty: ModerateRationale: (1000 / 1/3 -1 = %16. What is the price of a 4-year maturity bond with a 12% coupon rate paid annually (Parvalue = $1,000)A) $B) $1,C) $1,D) $1,E) none of the aboveAnswer: D Difficulty: DifficultRationale: (1000 / 1/4 -1 = %; FV = 1000, PMT = 120, n = 4, i = , PV = $1,17. The market segmentation theory of the term structure of interest ratesA) theoretically can explain all shapes of yield curves.B) definitely holds in the "real world".C) assumes that markets for different maturities are separate markets.D) A and B.E) A and C.Answer: E Difficulty: EasyRationale: Although this theory is quite tidy theoretically, both investors and borrows will depart from their "preferred maturity habitats" if yields on alternative maturities are attractive enough.18. An upward sloping yield curveA) may be an indication that interest rates are expected to increase.B) may incorporate a liquidity premium.C) may reflect the confounding of the liquidity premium with interest rateexpectations.D) all of the above.E) none of the above.Answer: D Difficulty: EasyRationale: One of the problems of the most commonly used explanation of termstructure, the expectations hypothesis, is that it is difficult to separate out the liquidity premium from interest rate expectations.19. The "break-even" interest rate for year n that equates the return on an n-periodzero-coupon bond to that of an n-1-period zero-coupon bond rolled over into a one-year bond in year n is defined asA) the forward rate.B) the short rate.C) the yield to maturity.D) the discount rate.E) None of the above.Answer: A Difficulty: EasyRationale: The forward rate for year n, fn, is the "break-even" interest rate for year n that equates the return on an n-period zero- coupon bond to that of an n-1-periodzero-coupon bond rolled over into a one-year bond in year n.20. When computing yield to maturity, the implicit reinvestment assumption is that theinterest payments are reinvested at the:A) Coupon rate.B) Current yield.C) Yield to maturity at the time of the investment.D) Prevailing yield to maturity at the time interest payments are received.E) The average yield to maturity throughout the investment period.Answer: C Difficulty: ModerateRationale: In order to earn the yield to maturity quoted at the time of the investment, coupons must be reinvested at that rate.21. Which one of the following statements is trueA) The expectations hypothesis indicates a flat yield curve if anticipated futureshort-term rates exceed the current short-term rate.B) The basic conclusion of the expectations hypothesis is that the long-term rate isequal to the anticipated long-term rate.C) The liquidity preference hypothesis indicates that, all other things being equal,longer maturities will have lower yields.D) The segmentation hypothesis contends that borrows and lenders are constrained toparticular segments of the yield curve.E) None of the above.Answer: D Difficulty: ModerateRationale: A flat yield curve indicates expectations of existing rates. Expectations hypothesis states that the forward rate equals the market consensus of expectations of future short interest rates. The reverse of C is true.22. The concepts of spot and forward rates are most closely associated with which one ofthe following explanations of the term structure of interest rates.A) Segmented Market theoryB) Expectations HypothesisC) Preferred Habitat HypothesisD) Liquidity Premium theoryE) None of the aboveAnswer: B Difficulty: ModerateRationale: Only the expectations hypothesis is based on spot and forward rates. A andC assume separate markets for different maturities; liquidity premium assumes higheryields for longer maturities.Use the following to answer question 23:23. Given the bond described above, if interest were paid semi-annually (rather thanannually), and the bond continued to be priced at $850, the resulting effective annual yield to maturity would be:A) Less than 12%B) More than 12%C) 12%D) Cannot be determinedE) None of the aboveAnswer: B Difficulty: ModerateRationale: FV = 1000, PV = -850, PMT = 50, n = 40, i = (semi-annual); 2 - 1 = %.24. Interest rates might declineA) because real interest rates are expected to decline.B) because the inflation rate is expected to decline.C) because nominal interest rates are expected to increase.D) A and B.E) B and C.Answer: D Difficulty: EasyRationale: The nominal rate is comprised of the real interest rate plus the expectedinflation rate.25. Forward rates ____________ future short rates because ____________.A) are equal to; they are both extracted from yields to maturity.B) are equal to; they are perfect forecasts.C) differ from; they are imperfect forecasts.D) differ from; forward rates are estimated from dealer quotes while future short ratesare extracted from yields to maturity.E) are equal to; although they are estimated from different sources they both are usedby traders to make purchase decisions.Answer: C Difficulty: EasyRationale: Forward rates are the estimates of future short rates extracted from yields to maturity but they are not perfect forecasts because the future cannot be predicted with certainty; therefore they will usually differ.26. The pure yield curve can be estimatedA) by using zero-coupon bonds.B) by using coupon bonds if each coupon is treated as a separate "zero."C) by using corporate bonds with different risk ratings.D) by estimating liquidity premiums for different maturities.E) A and B.Answer: E Difficulty: ModerateRationale: The pure yield curve is calculated using zero coupon bonds, but coupon bonds may be used if each coupon is treated as a separate "zero."27. The on the run yield curve isA) a plot of yield as a function of maturity for zero-coupon bonds.B) a plot of yield as a function of maturity for recently issued coupon bonds trading ator near par.C) a plot of yield as a function of maturity for corporate bonds with different riskratings.D) a plot of liquidity premiums for different maturities.E) A and B.Answer: B Difficulty: Moderate28. The market segmentation and preferred habitat theories of term structureA) are identical.B) vary in that market segmentation is rarely accepted today.C) vary in that market segmentation maintains that borrowers and lenders will notdepart from their preferred maturities and preferred habitat maintains that marketparticipants will depart from preferred maturities if yields on other maturities areattractive enough.D) A and B.E) B and C.Answer: E Difficulty: ModerateRationale: Borrowers and lenders will depart from their preferred maturity habitats if yields are attractive enough; thus, the market segmentation hypothesis is no longerreadily accepted.29. The yield curveA) is a graphical depiction of term structure of interest rates.B) is usually depicted for U. S. Treasuries in order to hold risk constant acrossmaturities and yields.C) is usually depicted for corporate bonds of different ratings.D) A and B.E) A and C.Answer: D Difficulty: EasyRationale: The yield curve (yields vs. maturities, all else equal) is depicted for U. S.Treasuries more frequently than for corporate bonds, as the risk is constant acrossmaturities for Treasuries.Use the following to answer questions 30-32:30. What should the purchase price of a 2-year zero coupon bond be if it is purchased at thebeginning of year 2 and has face value of $1,000A) $B) $C) $D) $E) $Answer: A Difficulty: DifficultRationale: $1,000 / [] = $31. What would the yield to maturity be on a four-year zero coupon bond purchased todayA) %B) %C) %D) %E) none of the above.Answer: C Difficulty: ModerateRationale: [ ]1/4 - 1 = %32. Calculate the price at the beginning of year 1 of a 10% annual coupon bond with facevalue $1,000 and 5 years to maturity.A) $1,105B) $1,132C) $1,179D) $1,150E) $1,119Answer: B Difficulty: DifficultRationale: i = [ ]1/5 - 1 = %; FV = 1000, PMT = 100, n = 5, i = , PV = $1,33. Given the yield on a 3 year zero-coupon bond is % and forward rates of % in year 1and % in year 2, what must be the forward rate in year 3A) %B) %C) %D) %E) none of the above.Answer: B Difficulty: ModerateRationale: f3 = 3 / [ ] - 1 = %34. An inverted yield curve is oneA) with a hump in the middle.B) constructed by using convertible bonds.C) that is relatively flat.D) that plots the inverse relationship between bond prices and bond yields.E) that slopes downward.Answer: E Difficulty: EasyRationale: An inverted yield curve occurs when short-term rates are higher thanlong-term rates.35. Investors can use publicly available financial date to determine which of the followingI)the shape of the yield curveII)future short-term ratesIII)the direction the Dow indexes are headingIV)the actions to be taken by the Federal ReserveA) I and IIB) I and IIIC) I, II, and IIID) I, III, and IVE) I, II, III, and IVAnswer: A Difficulty: ModerateRationale: Only the shape of the yield curve and future inferred rates can be determined.The movement of the Dow Indexes and Federal Reserve policy are influenced by term structure but are determined by many other variables also.36. Which of the following combinations will result in a sharply increasing yield curveA) increasing expected short rates and increasing liquidity premiumsB) decreasing expected short rates and increasing liquidity premiumsC) increasing expected short rates and decreasing liquidity premiumsD) increasing expected short rates and constant liquidity premiumsE) constant expected short rates and increasing liquidity premiumsAnswer: A Difficulty: ModerateRationale: Both of the forces will act to increase the slope of the yield curve.37. The yield curve is a component ofA) the Dow Jones Industrial Average.B) the consumer price index.C) the index of leading economic indicators.D) the producer price index.E) the inflation index.Answer: C Difficulty: EasyRationale: Since the yield curve is often used to forecast the business cycle, it is used as one of the leading economic indicators.38. The most recently issued Treasury securities are calledA) on the run.B) off the run.C) on the market.D) off the market.E) none of the above.Answer: A Difficulty: EasyUse the following to answer questions 39-42:Suppose that all investors expect that interest rates for the 4 years will be as follows:39. What is the price of 3-year zero coupon bond with a par value of $1,000A) $B) $C) $D) $E) none of the aboveAnswer: A Difficulty: ModerateRationale: $1,000 / = $40. If you have just purchased a 4-year zero coupon bond, what would be the expected rateof return on your investment in the first year if the implied forward rates stay the same (Par value of the bond = $1,000)A) 5%B) 3%C) 9%D) 10%E) none of the aboveAnswer: B Difficulty: ModerateRationale: The forward interest rate given for the first year of the investment is given as 3% (see table above).41. What is the price of a 2-year maturity bond with a 5% coupon rate paid annually (Parvalue = $1,000)A) $1,B) $1,C) $1,D) $1,E) none of the aboveAnswer: C Difficulty: ModerateRationale: []1/2 - 1 = %; FV = 1000, n = 2, PMT = 50, i = , PV = $1,42. What is the yield to maturity of a 3-year zero coupon bondA) %B) %C) %D) 4%E) none of the aboveAnswer: D Difficulty: ModerateRationale: []1/3 - 1 = 4%.Use the following to answer questions 43-46:The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000.43. What is, according to the expectations theory, the expected forward rate in the thirdyearA)B) %C) %D) %E) none of the aboveAnswer: B Difficulty: ModerateRationale: / - 1 = %44. What is the yield to maturity on a 3-year zero coupon bondA) %B) %C) %D) %E) none of the aboveAnswer: D Difficulty: ModerateRationale: (1000 / 1/3 -1 = %45. What is the price of a 4-year maturity bond with a 10% coupon rate paid annually (Parvalue = $1,000)A) $B) $1,C) $1,D) $1,E) none of the aboveAnswer: C Difficulty: DifficultRationale: (1000 / 1/4 -1 = %; FV = 1000, PMT = 100, n = 4, i = , PV = $1,46. You have purchased a 4-year maturity bond with a 9% coupon rate paid annually. Thebond has a par value of $1,000. What would the price of the bond be one year from now if the implied forward rates stay the sameA) $B) $1,C) $1,D) $1,E) none of the aboveAnswer: A Difficulty: DifficultRationale: / ]1/3 - = %; FV = 1000, PMT = 90, n = 3, i = , PV = $Use the following to answer question 47:47. Given the bond described above, if interest were paid semi-annually (rather thanannually), and the bond continued to be priced at $, the resulting effective annual yield to maturity would be:A) Less than 10%B) More than 10%C) 10%D) Cannot be determinedE) None of the aboveAnswer: B Difficulty: ModerateRationale: FV = 1000, PV = , PMT = 45, n = 36, i = (semi-annual); 2 - 1 = %.Use the following to answer questions 48-50:48. What should the purchase price of a 2-year zero coupon bond be if it is purchased at thebeginning of year 2 and has face value of $1,000A) $B) $C) $D) $E) $Answer: D Difficulty: DifficultRationale: $1,000 / [] = $49. What would the yield to maturity be on a four-year zero coupon bond purchased todayA) %B) %C) %D) %E) none of the above.Answer: A Difficulty: ModerateRationale: [ ]1/4 - 1 = %50. Calculate the price at the beginning of year 1 of an 8% annual coupon bond with facevalue $1,000 and 5 years to maturity.A) $1,B) $1,C) $1,D) $1,E) $Answer: C Difficulty: DifficultRationale: i = [ ]1/5 - 1 = 6%; FV = 1000, PMT = 80, n = 5, i = 6, PV = $51. Given the yield on a 3 year zero-coupon bond is 7% and forward rates of 6% in year 1and % in year 2, what must be the forward rate in year 3A) %B) %C) %D) %E) none of the above.Answer: C Difficulty: ModerateRationale: f3 = 3 / [ ] - 1 = %Use the following to answer questions 52-61:52. What should the purchase price of a 1-year zero coupon bond be if it is purchased todayand has face value of $1,000A) $B) $C) $D) $E) $Answer: D Difficulty: DifficultRationale: $1,000 / = $53. What should the purchase price of a 2-year zero coupon bond be if it is purchased todayand has face value of $1,000A) $B) $C) $D) $E) $Answer: B Difficulty: DifficultRationale: $1,000 / [] = $54. What should the purchase price of a 3-year zero coupon bond be if it is purchased todayand has face value of $1,000A) $B) $C) $D) $E) $Answer: E Difficulty: DifficultRationale: $1,000 / [] = $55. What should the purchase price of a 4-year zero coupon bond be if it is purchased todayand has face value of $1,000A) $B) $C) $D) $E) $Answer: B Difficulty: DifficultRationale: $1,000 / [] = $56. What should the purchase price of a 5-year zero coupon bond be if it is purchased todayand has face value of $1,000A) $B) $C) $D) $E) $Answer: A Difficulty: DifficultRationale: $1,000 / [] = $57. What is the yield to maturity of a 1-year bondA) %B) %C) %D) %E) %Answer: A Difficulty: ModerateRationale: % (given in table)58. What is the yield to maturity of a 5-year bondA) %B) %C) %D) %E) %Answer: C Difficulty: ModerateRationale: []1/5 -1 = %59. What is the yield to maturity of a 4-year bondA) %B) %C) %D) %E) %Answer: C Difficulty: ModerateRationale: []1/4 -1 = %60. What is the yield to maturity of a 3-year bondA) %B) %C) %D) %E) %Answer: B Difficulty: ModerateRationale: []1/3 -1 = %61. What is the yield to maturity of a 2-year bondA) %B) %C) %D) %E) %Answer: D Difficulty: ModerateRationale: []1/2 -1 = %Essay Questions62. Discuss the three theories of the term structure of interest rates. Include in yourdiscussion the differences in the theories, and the advantages/disadvantages of each.Difficulty: ModerateAnswer:The expectations hypothesis is the most commonly accepted theory of term structure.The theory states that the forward rate equals the market consensus expectation of future short-term rates. Thus, yield to maturity is determined solely by current and expected future one-period interest rates. An upward sloping, or normal, yield curve wouldindicate that investors anticipate an increase in interest rates. An inverted, or downward sloping, yield curve would indicate an expectation of decreased interest rates. Ahorizontal yield curve would indicate an expectation of no interest rate changes.The liquidity preference theory of term structure maintains that short-term investorsdominate the market; thus, in general, the forward rate exceeds the expected short-term rate. In other words, investors prefer to be liquid to illiquid, all else equal, and willdemand a liquidity premium in order to go long term. Thus, liquidity preference readily explains the upward sloping, or normal, yield curve. However, liquidity preferencedoes not readily explain other yield curve shapes.Market segmentation and preferred habitat theories indicate that the markets fordifferent maturity debt instruments are segmented. Market segmentation maintains that the rates for the different maturities are determined by the intersection of the supply and demand curves for the different maturity instruments. Market segmentation readilyexplains all shapes of yield curves. However, market segmentation is not observed in the real world. Investors and issuers will leave their preferred maturity habitats if yields are attractive enough on other maturities.The purpose of this question is to ascertain that students understand the variousexplanations (and deficiencies of these explanations) of term structure.63. Term structure of interest rates is the relationship between what variables What isassumed about other variables How is term structure of interest rates depictedgraphicallyDifficulty: ModerateAnswer:Term structure of interest rates is the relationship between yield to maturity and term to maturity, all else equal. The "all else equal" refers to risk class. Term structure ofinterest rates is depicted graphically by the yield curve, which is usually a graph of .governments of different yields and different terms to maturity. The use of .governments allows one to examine the relationship between yield and maturity,holding risk constant. The yield curve depicts this relationship at one point in time only.This question is designed to ascertain that students understand the relationshipsinvolved in term structure, the restrictions on the relationships, and how therelationships are depicted graphically.64. Although the expectations of increases in future interest rates can result in an upwardsloping yield curve; an upward sloping yield curve does not in and of itself imply the expectations of higher future interest rates. Explain.Difficulty: ModerateAnswer:The effects of possible liquidity premiums confound any simple attempt to extractexpectation from the term structure. That is, the upward sloping yield curve may be due to expectations of interest rate increases, or due to the requirement of a liquiditypremium, or both. The liquidity premium could more than offset expectations ofdecreased interest rates, and an upward sloping yield would result.The purpose of this question is to assure that the student understands the confounding of the liquidity premium with the expectations hypothesis, and that the interpretations of term structure are not clear-cut.65. Explain what the following terms mean: spot rate, short rate, and forward rate. Whichof these is (are) observable todayDifficulty: ModerateAnswer:From the answer to Concept Check 2, on page 516: “The n-period spot rate is the yield to maturity on a zero-coupon bond with a maturity of n periods. The short rate forperiod n is the one-period interest rate that will prevail in period n. The forward rate for period n is the short rate that would satisfy a “break-even condition” equating the total returns on two n-period investment strategies. The first strategy is an investment in an n-period zero-coupon bond. The second is an investment in an n-1 period zero-coupon bond “rolled over” into an investment in a one-period zero. Spot rates and forward rates are observable today, but because interest rates evolve with uncertainty, future short rates are not. In the special case in which there is no uncertainty in future interest rates, the forward rate calculated from the yield curve would equal the short rate that will prevail in that period.”This question checks whether the student understands the difference between each kind of rate.66. Answer the following questions that relate to bonds.• A 2-year zero-coupon bond is selling for $. What is the yield to maturity of this bond•The price of a 1-year zero coupon bond is $. What is the yield to maturity of this bond•Calculate the forward rate for the second year.•How can you construct a synthetic one-year forward loan (you are agreeing now to loan in one year) State the strategy and show the corresponding cash flows.Assume that you can purchase and sell fractional portions of bonds. Show allcalculations and discuss the meaning of the transactions.Difficulty: Difficult。

投资学选择题及答案英文版(总7页)--本页仅作为文档封面，使用时请直接删除即可----内页可以根据需求调整合适字体及大小--INVESTMENTTUTORIAL 1SUMISSION DEADLINE: OCT 221. Primary market refers to the market ____________.A. that attempts to identify mispriced securities and arbitrage opportunities.B. in which investors trade already issued securities.C. where new issues of securities are offered.D. in which securities with custom-tailored characteristics are designed.2. Asset allocation refers to the _________.A. allocation of the investment portfolio across broad asset classesB. analysis of the value of securitiesC. choice of specific assets within each asset classD. none of the answers define asset allocation3. An example of a derivative security is _________.A. a common share of General MotorsB. a call option on Intel stockC. a Ford bondD. a . Treasury bond4. Money Market securities are characterized by ________.I. maturity less than one yearII. safety of the principal investmentIII. low rates of returnA. I onlyB. I and II onlyC. I and III onlyD. I, II and III5. __________ assets generate net income to the economy and __________ assets define allocation of income among investors.A. Financial, financialB. Financial, realC. Real, financialD. Real, real6. An important trend that has changed the contemporary investment market is_________.A. financial engineeringB. globalizationC. securitizationD. all three of the other answers7. Securitization refers to the creation of new securities by _________.A. selling individual cash flows of a security or loanB. repackaging individual cash flows of a security or loan into a new payment patternC. taking an illiquid asset and converting it into a marketable securityD. selling financial services overseas as well as in the .8. Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claims in capital markets becauseI. intermediaries are better diversified than most individualsII. intermediaries can exploit economies of scale in investing that individual investors cannotIII. intermediated investments usually offer higher rates of return than direct capital market claimsA. I onlyB. I and II onlyC. II and III onlyD. I, II and III9. Stone Harbor Products takes out a bank loan. It receives $100,000 and signs a promissory note to pay back the loan over 5 years.A. A new financial asset was created in this transaction.B. A financial asset was traded for a real asset in this transaction.C. A financial asset was destroyed in this transaction.D. A real asset was created in this transaction.10. In recent years the greatest dollar amount of securitization occurred for which type loanA. Home mortgagesB. Credit card debtC. Automobile loansD. Equipment leasing11. An investment advisor has decided to purchase gold, real estate, stocks, and bonds in equal amounts. This decision reflects which part of the investment processA. Asset allocationB. Investment analysisC. Portfolio analysisD. Security selection12. A dollar denominated deposit at a London bank is called _____.A. eurodollarsB. LIBORC. fed fundsD. banker's acceptance13. The German stock market is measured by which market indexA. FTSEB. Dow Jones 30C. DAXD. Nikkei14. Which one of the following is a true statement regarding the Dow Jones Industrial AverageA. It is a value-weighted average of 30 large industrial stocksB. It is a price-weighted average of 30 large industrial stocksC. It is a price-weighted average of 100 large stocks traded on the New York Stock ExchangeD. It is a value-weighted average of all stocks traded on the New York Stock Exchange15. Preferred stock is like long-term debt in that ___________.A. it gives the holder voting power regarding the firm's managementB. it promises to pay to its holder a fixed stream of income each yearC. the preferred dividend is a tax-deductible expense for the firmD. in the event of bankruptcy preferred stock has equal status with debt16. Three stocks have share prices of $12, $75, and $30 with total market values of $400 million, $350 million and $150 million respectively. If you were to construct a price-weighted index of the three stocks what would be the index valueA. 300B. 39C. 43D. 3017. In a ___________ index changes in the value of the stock with the greatest market value will move the index value the most everything else equal.A. value weighted indexB. equal weighted indexC. price weighted indexD. bond price index18. A benchmark index has three stocks priced at $23, $43, and $56. The number of outstanding shares for each is 350,000 shares, 405,000 shares, and 553,000 shares, respectively. If the market value weighted index was 970 yesterday and the prices changed to $23, $41, and $58, what is the new index valueA. 960B. 970C. 975D. 98519. Under firm commitment underwriting the ______ assumes the full risk that the shares cannot be sold to the public at the stipulated offering price.A. red herringB. issuing companyC. initial stockholderD. underwriter20. Barnegat Light sold 200,000 shares in an initial public offering. Theunderwriter's explicit fees were $90,000. The offering price for the shares was $35,but immediately upon issue, the share price jumped to $43. What is the best estimate of the total cost to Barnegat Light of the equity issueA. $90,000B. $1,290,000C. $2,390,000D. $1,690,00021. Which one of the following statements about IPOs is not trueA. IPOs generally underperform in the short run.B. IPOs often provide very good initial returns to investors.C. IPOs generally provide superior long-term performance as compared to other stocks.D. Shares in IPOs are often primarily allocated to institutional investors.22. The NYSE recently acquired the ECN _______ and NASDAQ recently acquired the ECN ________.A. Archipelago; InstinetB. Instinet; ArchipelagoC. Island; InstinetD. LSE; Euronext23. Which one of the following is not an example of a brokered marketA. Residential real estate marketB. Market for large block security transactionsC. Primary market for securitiesD. NASDAQ24. An order to buy or sell a security at the current price is a ______________.A. limit orderB. market orderC. stop loss orderD. stop buy order25. If an investor places a _________ order the stock will be sold if its price falls to the stipulated level. If an investor places a __________ order the stock will be bought if its price rises above the stipulated level.A. stop-buy; stop-lossB. market; limitC. stop-loss; stop-buyD. limit; market26. On a given day a stock dealer maintains a bid price of $ for a bond and an ask price of $. The dealer made 10 trades which totaled 500 bonds traded that day. What was the dealer's gross trading profit for this securityA. $1,375B. $500C. $275D. $1,45027. The bulk of most initial public offerings (IPOs) of equity securities go to___________.A. institutional investorsB. individual investorsC. the firm's current shareholdersD. day traders28. The _________ price is the price at which a dealer is willing to purchase a security.A. bidB. askC. clearingD. settlement29. The bid-ask spread exists because of _______________.A. market inefficienciesB. discontinuities in the marketsC. the need for dealers to cover expenses and make a profitD. lack of trading in thin markets30. Both the NYSE and Nasdaq have lost market share to ECNs in recent years. Part of Nasdaq's response to the growth of ECNs has been to _______.I. Purchase Instinet, a major ECNII. Enable automatic trade execution through its new Market CenterIII. Switch from stock ownership to mutual ownershipA. I onlyB. II and III onlyC. I and II onlyD. I, II and III31. You purchased XYZ stock at $50 per share. The stock is currently selling at $65. Your gains could be protected by placing a _________.A. limit-buy orderB. limit-sell orderC. market orderD. stop-loss order32. You find that the bid and ask prices for a stock are $ and $ respectively. If you purchase or sell the stock you must pay a flat commission of $25. If you buy 100 shares of the stock and immediately sell them, what is your total implied and actual transaction cost in dollarsA. $50B. $25C. $30D. $5533. Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If the initial margin is 60%, the amount you borrowed from the broker is _________.A. $20,000B. $12,000C. $8,000D. $15,00034. You short-sell 200 shares of Tuckerton Trading Co., now selling for $50 per share. What is your maximum possible gain ignoring transactions costA. $50B. $150C. $10,000D. unlimited35. You short-sell 200 shares of Rock Creek Fly Fishing Co., now selling for $50 per share. If you wish to limit your loss to $2,500, you should place a stop-buy order at ____.A. $B. $C. $D. $36. You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance margin is 30%. You will get a margincall if the stock drops below ________. (Assume the stock pays no dividends andignore interest on the margin loan.)A. $B. $C. $D. $37. You purchased 250 shares of common stock on margin for $25 per share. The initial margin is 65% and the stock pays no dividend. Your rate of return would be __________ if you sell the stock at $32 per share. Ignore interest on margin.A. 35%B. 39%C. 43%D. 28%38. Which one of the following invests in a portfolio that is fixed for the life of the fundA. Mutual fundB. Money market fundC. Managed investment companyD. Unit investment trust39. A __________ is a private investment pool open only to wealthy or institutional investors that is exempt from SEC regulation and can therefore pursue more speculative policies than mutual funds.A. commingled poolB. unit trustC. hedge fundD. money market fund40. A contingent deferred sales charge is commonly called a ____.A. front-end loadB. back-end loadC. 12b-1 chargeD. top end sales commission41. Assume that you have just purchased some shares in an investment company reporting $500 million in assets, $50 million in liabilities, and 50 million shares outstanding. What is the Net Asset Value (NAV) of these sharesA. $B. $C. $D. $42. The Vanguard 500 Index Fund tracks the performance of the S&P 500. To do so the fund buys shares in each S&P 500 company __________.A. in proportion to the market value weight of the firm's equity in the S&P500B. in proportion to the price weight of the stock in the S&P500C. by purchasing an equal number of shares of each stock in the S&P 500D. by purchasing an equal dollar amount of shares of each stock in the S&P500who wish to liquidate their holdings in a closed-end fund may ___________________.A. sell their shares back to the fund at a discount if they wishB. sell their shares back to the fund at net asset valueC. sell their shares on the open marketD. sell their shares at a premium to net asset value if they wish44. __________ funds stand ready to redeem or issue shares at their net asset value.A. Closed-endB. IndexC. Open-endD. Hedge45. Consider a mutual fund with $300 million in assets at the start of the year, and 12 million shares outstanding. If the gross return on assets is 18% and the total expense ratio is 2% of the year end value, what is the rate of return on the fundA. %B. %C. %D. %46. A/an _____ is an example of an exchange-traded fund.A. SPDR or spiderB. samuraiC. VanguardD. open-end fund47. The Wildwood Fund sells Class A shares with a front-end load of 5% and Class B Shares with a 12b-1 fees of 1% annually. If you plan to sell the fund after 4 years, are Class A or Class B shares the better choice Assume a 10% annual return net of expenses.A. Class AB. Class BC. There is no difference.D. There is insufficient information given.48. Advantages of ETFs over mutual funds include all but which one of the followingA. ETFs trade continuously so investors can trade throughout the dayB. ETFs can be sold short or purchased on margin, unlike fund sharesC. ETF providers do not have to sell holdings to fund redemptionsD. ETF values can diverge from NAV49. A mutual fund has $50 million in assets at the beginning of the year and 1million shares outstanding throughout the year. Throughout the year assets grow at 12%. The fund imposes a 12b-1 fee on all shares equal to 1%. The fee is imposed on year end asset values. If there are no distributions what is the end of year NAV for the fundA. $B. $C. $D. $50. You pay $21,600 to the Laramie Fund which has a NAV of $ per share at the beginning of the year. The fund deducted a front-end load of 4%. The securities in the fund increased in value by 10% during the year. The fund's expense ratio is % and is deducted from year end asset values. What is your rate of return on the fund if you sell your shares at the end of the yearA. %B. %C. %D. %。

高二英语金融投资概念单选题30题1. In the world of financial investment, a _____ is a type of security that represents the ownership of a fraction of a corporation.A. bondB. fundC. stockD. deposit答案：C。

解析：在金融投资领域，股票（stock）代表着对公司的部分所有权。

债券（bond）是一种债务凭证，与所有权无关；基金fund）是集合资金进行多种投资的形式，并非代表公司所有权；存款 deposit）是把钱存入银行等金融机构，和公司所有权没有关系。

2. If you want a relatively stable income from your investment, you might consider _____.A. stocksB. high - risk fundsC. bondsD. new - founded companies答案：C。

解析：债券（bonds）通常能提供相对稳定的收益。

股票 stocks）收益波动较大；高风险基金 high - risk funds）风险高，收益不稳定；新成立的公司（new - founded companies）投资风险大，收益不稳定，不符合想要相对稳定收益的需求。

3. A mutual fund pools money from many investors to _____.A. buy a single stockB. buy a variety of investmentsC. only invest in bondsD. deposit in one bank答案：B。

解析：共同基金 mutual fund）是从众多投资者那里募集资金来购买多种投资产品。

不是只购买单一股票 buy a single stock）；也不是只投资债券（only invest in bonds）；更不是只在一家银行存款 deposit in one bank）。

中考英语投资理财的策略选择练习题30题含答案解析1.If you want to save money, you should _____.A.spend a lotB.save a littleC.save regularlyD.buy expensive things答案解析：C。

A 选项“spend a lot”意为花很多钱，与存钱的目的相悖；B 选项“save a little”表述不准确，没有强调有规律地存钱；C 选项“save regularly”表示有规律地存钱，符合题意；D 选项“buy expensive things”会花钱而不是存钱。

2.When you make a shopping decision, you should consider _____.A.price onlyB.quality onlyC.price and qualityD.look only答案解析：C。

A 选项“price only”只考虑价格是不全面的；B 选项“quality only”只考虑质量也不全面；C 选项“price and quality”既考虑价格又考虑质量才是合理的购物决策；D 选项“look only”只看外观是不可取的。

3.To manage your money well, you need to _____.A.never saveB.spend allC.make a planD.buy randomly答案解析：C。

A 选项“never save”不存钱无法管理好钱；B 选项“spend all”花光所有钱也不行；C 选项“make a plan”制定计划才能管理好钱；D 选项“buy randomly”随意购买不利于管理钱。

4.Which is a good way to save money?A.Eat out every dayB.Buy new clothes oftene public transportationD.Stay in expensive hotels答案解析：C。