Question 1: An order that remains in effect until the end of the day is called a:
Question 2: The price for which the owner is willing to sell the security is called the:
Question 3: If an investor feels the price of a stock will decline in the future, which trade should the investor undertake?
Question 4: An agreement whereby an investment banker tries to sell securities of an issuing corporation, but assumes no risk if the flotation is unsuccessful is called a:
Question 5: Commercial banks were for many years prohibited from full-fledged investment banking by the:
Question 6: Sales of securities that the seller does not own is called a:
Question 7: ___________________ is the maximum purchase price or minimum selling price specified by an investor.
Question 8: A market whereby large institutional investors arrange purchases and sales of securities among themselves without the benefit of a broker or dealer is referred to as the:
Question 9: A contract that gives the owner the option or choice of selling a particular good at a specified price on or before a specified date is called a (n):
Question 10: A contract that obligates the owner to purchase an underlying asset at a specified price on a specified day is a (n) ____________ contract.
Question 11: Which one of the following is not considered to be a generally recognized type of market efficiency?
Question 12: Which of the following is not required to compute the standard deviation of a two-stock portfolio?
Question 13: The market portfolio would have a beta of:
Question 14: Variations in a firm's tax rate and tax-related charges over time due to changing tax laws and regulations is called:
Question 15: In comparing the deviations of returns, which one of the following assets has historically had the largest standard deviation of annual returns?
Question 16: The risk cause by variations in income before taxes over time because fixed interest expenses do not change when operating income rises or falls is called:
Question 17: The correlation between the return on the risk-free asset and the return on a risky asset is always:
Question 18: If the _____________ of a stock is known, an investor can use the security market line to determine the expected return on that stock.
Question 19: Which one of the following assets has historically had the highest average annual return?
Question 20: The risk cause by variations in interest expense unrelated to sales or operating income arising from changes in the level of interest rates in the economy is called: