1. If the risk/return performance of a stock lies above the Security Market Line, the stock is said to have a:
a. Positive covariance
b. Positive expected return
c. Positive correlation coefficient
d. Positive alpha
2. Which one of the listed tasks is a benefit of follow-up after the loan closes?
Reviewing and reaffirming the terms of the loan, amount, rate, collateral, and guarantees
Ensuring that the loan’s terms and conditions are being fulfilled by both the customer and the bank
Analyzing the historical financial conditions and cash flow of the customer
Resolving any unfulfilled requests or needs of the customer
3. Sylvia has a two assets in her equally-weighted portfolio, asset A and asset B. Asset A has a standard deviation of 40% and asset B has a standard deviation of 20%. The correlation for asset A and asset B is 0.90. What is the standard deviation for her portfolio?
Greater than 30%
Less that 30%
Equal to 30%
Not enough information to determine
4. Which of the following accounts is not tax-deferred?
a. Annuity b. Mutual Fund c. 401(k) and Traditional IRA d. Pension