Question 1

When the relative strength of a stock with respect to an index is increasing, the stock is

Options :

A : keeping pace with the chosen index.

B : all of these answers are possible.

C : doing better than the chosen index.

D : worse than the chosen index.

Answer: C

Question 2

An investor faces the following investment scenarios:Scenario Probability ReturnBull market 60% 30%Neutral market 30% 7%Market crash 10% -25%The investor's expected rate of return is ________.

Options :

A : 12.45%

B : 17.6%

C : 16.2%

D : 19.3%

Answer: B

Question 3

You wish to rank n different securities according to the deviation of the market price from your estimate oftheir intrinsic value. You are curious how many different ways this can come out. The counting method youshould use is:

Options :

A : The permutation rule.

B : The multinomial formula.

C : The binomial formula.

D : None of these answers is correct.

Answer: D

Question 4

The ________ Index is the ratio of Barron's average yield on 10 top grade corporate bonds to the yield onthe Dow Jones average of 40 bonds.

Options :

A : Dow-Barron

B : Risk

C : Confidence

D : Bond Rating

Answer: C

Question 5

Which would not be considered an important characteristic when studying industry analysis?

Options :

A : sales growth comparisons

B : evaluation of stage in industrial life cycle

C : effective tax rate comparisons

D : common stock yields

E : regulatory changes

Answer: C

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