Investment and Portfolio Management Essay Example
1. Financial assets represent _____ of total assets of U.S. households.
A. over 60%
B. over 90%
C. under 10%
D. about 30% 2. Real assets in the economy include all but which one of the following?
A. Land
B. Buildings
C. Consumer durables
D. Common stock
3. Net worth represents _____ of the liabilities and net worth of commercial banks.
A. about 50%
B. about 90%
C. about 10%
D. about 30%
4. According to the Flow of Funds Accounts of the United States, the largest single asset of U.S. households is ___.
A. mutual fund shares
B. real estate
C. pension reserves
D. corporate equity 5. According to the Flow of Funds Accounts of the United States, the largest liability of U.S. households is ________.
A. mortgages
B. consumer credit
C. bank loans
D. gambling debts 6. ____ is not a derivative security.
A. A share of common stock
B. A call option
C. A futures contract
D. All of the above are derivative securities. 7. According to the Flow of Funds Accounts of the United States, the largest financial asset of U.S. households is ____.
A. mutual fund shares
B. corporate equity
C. pension reserves
D. personal trusts 8. Active trading in markets and competition among securities analysts helps ensure that __________.
I. security prices approach informational efficiency
II. riskier securities are priced to offer higher potential returns
III. investors are unlikely to be able to consistently find under- or overvalued securities
A. I only
B. I and II only
C. II and III only
D. I, II and III 9. The material wealth of society is determined by the economy's _________, which is a function of the economy's _________.
A. investment bankers, financial assets
B. investment bankers, real assets
C. productive capacity, financial assets
D. productive capacity, real assets 10. Which of the following is not a money market security?
A. U.S. Treasury bill
B. Six month maturity certificate of deposit
C. Common
A. over 60%
B. over 90%
C. under 10%
D. about 30% 2. Real assets in the economy include all but which one of the following?
A. Land
B. Buildings
C. Consumer durables
D. Common stock
3. Net worth represents _____ of the liabilities and net worth of commercial banks.
A. about 50%
B. about 90%
C. about 10%
D. about 30%
4. According to the Flow of Funds Accounts of the United States, the largest single asset of U.S. households is ___.
A. mutual fund shares
B. real estate
C. pension reserves
D. corporate equity 5. According to the Flow of Funds Accounts of the United States, the largest liability of U.S. households is ________.
A. mortgages
B. consumer credit
C. bank loans
D. gambling debts 6. ____ is not a derivative security.
A. A share of common stock
B. A call option
C. A futures contract
D. All of the above are derivative securities. 7. According to the Flow of Funds Accounts of the United States, the largest financial asset of U.S. households is ____.
A. mutual fund shares
B. corporate equity
C. pension reserves
D. personal trusts 8. Active trading in markets and competition among securities analysts helps ensure that __________.
I. security prices approach informational efficiency
II. riskier securities are priced to offer higher potential returns
III. investors are unlikely to be able to consistently find under- or overvalued securities
A. I only
B. I and II only
C. II and III only
D. I, II and III 9. The material wealth of society is determined by the economy's _________, which is a function of the economy's _________.
A. investment bankers, financial assets
B. investment bankers, real assets
C. productive capacity, financial assets
D. productive capacity, real assets 10. Which of the following is not a money market security?
A. U.S. Treasury bill
B. Six month maturity certificate of deposit
C. Common