1. Which of the following is NOT true about overconfidence bias in investing?
a. Associated with More Frequent Trading Activity
b. Common Among Mutual Fund Managers
c. More Common in Males than Females
d. Overstates the Accuracy of Forecasts
e. Rarely Occurs in the Investment Management Profession
2. Which of the following statements about hidden orders is NOT true?
a. Hidden Orders are Used by Informed Traders
b. Hidden Orders have Lower Priority of Execution than Comparable Visible Orders
c. Hidden Orders have Lower Execution Probability than Comparable Visible Orders
d. Hidden Orders may Show a Portion of Order Size
e. Hidden Orders Rarely are Used in U.S. Stock Exchanges
3. An HFT technique involving the submission of large order volume with the intention to immediately cancel the orders before they are executed is known as:
a. Latency
b. Preferencing
c. Quote Stuffing
d. Spoofing
e. Teleporting
4. Fill in the Blank: __________________ is a European regulation designed to increase the resiliency, efficiency, and transparency of financial markets.
a. Dodd-Frank Act
b. Glass-Steagall Act
c. MiFID
d. Regulation NMS
e. Volcker Rule
5. Internalization and over-the-counter (OTC) market maker transactions conducted by discount brokers represent approximately what percentage of client market orders?
a. 5%
b. 17%
c. 40%
d. 76%
e. 95%