5513 MID-exam
Name:
Student ID
Signature
The University of New South Wales
School of Banking and Finance
FINS 5513: Investments and Portfolio Selection
Mid-Session Sample Examination Session 1, 2013
Time Allowed: 2 Hours
Reading Time: 5 minutes
All pages of this examination must be returned
This examination contains 23 questions in 2 sections and has 35 total marks:
•
•
20 multiple-choice questions, each question carries 1 mark, 20 total marks;
3 short-answer questions, each question carries 5 marks, 15 total marks;
Instructions:
1. Write your name and student number and sign on the top of this page.
2. Attempt all questions.
3. Mark your answer to the multiple choice questions in pencil on the generalized answer sheet provided.
4. Write your answer to the calculation questions in ink in the booklet provided.
5. This paper is not to be retained by students.
6. You may use your own calculator, but are not allowed to use any other materials.
Part 1: Multiple Choice Questions (20 marks, each question is worth one point)
Mark clearly the correct answer on the multiple choice answer sheet.
1. Assume you purchased 200 shares of GE common stock on margin at $70 per share from your broker.
If the initial margin is 55%, how much did you borrow from the broker?
A. $6,000
B. $4,000
C. $7,700
D. $7,000
E. $6,300
2. You purchased shares of a mutual fund at a price of $20 per share at the beginning of the year and paid a front-end load of 5.75%. If the securities in which the fund invested increased in value by 11% during the year, and the fund's expense ratio was 1.25%, your return if you sold the fund at the end of the year would be ____________%.
A. 4.33
B. 3.44
C. 2.45
D. 6.87
E. 5.16
3. Which one of the following statements regarding closed-end mutual funds is false?
A. The funds sometimes trade at a discount from NAV.
B. The funds are sold at the prevailing market price.
C. The funds offer investors professional management.
D. The
Student ID
Signature
The University of New South Wales
School of Banking and Finance
FINS 5513: Investments and Portfolio Selection
Mid-Session Sample Examination Session 1, 2013
Time Allowed: 2 Hours
Reading Time: 5 minutes
All pages of this examination must be returned
This examination contains 23 questions in 2 sections and has 35 total marks:
•
•
20 multiple-choice questions, each question carries 1 mark, 20 total marks;
3 short-answer questions, each question carries 5 marks, 15 total marks;
Instructions:
1. Write your name and student number and sign on the top of this page.
2. Attempt all questions.
3. Mark your answer to the multiple choice questions in pencil on the generalized answer sheet provided.
4. Write your answer to the calculation questions in ink in the booklet provided.
5. This paper is not to be retained by students.
6. You may use your own calculator, but are not allowed to use any other materials.
Part 1: Multiple Choice Questions (20 marks, each question is worth one point)
Mark clearly the correct answer on the multiple choice answer sheet.
1. Assume you purchased 200 shares of GE common stock on margin at $70 per share from your broker.
If the initial margin is 55%, how much did you borrow from the broker?
A. $6,000
B. $4,000
C. $7,700
D. $7,000
E. $6,300
2. You purchased shares of a mutual fund at a price of $20 per share at the beginning of the year and paid a front-end load of 5.75%. If the securities in which the fund invested increased in value by 11% during the year, and the fund's expense ratio was 1.25%, your return if you sold the fund at the end of the year would be ____________%.
A. 4.33
B. 3.44
C. 2.45
D. 6.87
E. 5.16
3. Which one of the following statements regarding closed-end mutual funds is false?
A. The funds sometimes trade at a discount from NAV.
B. The funds are sold at the prevailing market price.
C. The funds offer investors professional management.
D. The