Capital markets

If you expect that the price of a stock will decline, which of the following are you most likely do?

• Buy a put option on the stock.
• Buy a call option on the stock.
• Write a put option on the stock.
• Buy the stock on margin.

The Nasdaq is an example of:

• an exchange.
• an over-the-counter market.

A share of common stock is an example of:

• a capital security.
• a money market security.

Suppose you buy a stock for $40 a share at the beginning of the year and the stock pays a dividend of $2 per share at the end of the year. If the stock's price of $37 per share at the end of the year, the return on the stock is closest to:

• -7.5%
• -2.7%
• -2.5%
• 2.5%

If you buy a 30-day Treasury bill for 99.75, the discount yield on this security is closest to:

• 3%
• 3.0075%
• 3.0493%
• 3.0417%

Commercial paper is an example of a:

• capital market instrument.
• money market instrument.

The self-regulatory organization for brokers and dealers is the:

• SEC.
• FINRA.
• NYSE.

An example of an open-ended fund is:

• an ETF.
• a mutual fund.
• a unit investment trust.

Suppose a stock had return of 4% the first year, a loss of 5% the second year, and a return of 3% the third year, what is the average annual return on this stock?

• 0.585%
• 0.667%
• 2%

If an investment earns 2% the first six months and 3% the second six months, its annual return is closest to:

• 5%
• 5.06%
• 6%