Group2 Lesson 1

Basic areas of finance

• corporate finance, investments, financial institutions, international finance

• business finance, consumption, finance institutions, international finance

• investments, financial institutions, international business, business finance

• financial business, international business, corporate business, investment business

What is the dollar return on an investment that costs $200 and is sold after 1 year for $220?

• $11

• $440

• $20

• $44000

Bata measures

• stock's savings to overall individual movements

• stock's savings to overall market movements

• stock's sensitivity to overall individual movements

• stock's sensitivity to overall market movements

Stock IBM has a beta of negative 4 and S&P 500 index increases in value by 10%. How does the price of IBM be expected to change?

• increase 40%

• increase 14%

• decrease 40%

• decrease 14%

A beta zero indicates that

• stock price has no correlation to movement in the market index

• stock price has correlation to movement in the market index

• market price has no correlation to movement in the stock index

• market price has correlation to movement in the stock index

Beta is a measure of volatility and the volatility is associated with .....

• return

• risk

• price

• market

What is a limited company?

• is oversight agencies, regulators and tax collection entities

• is including summarizing, analyzing, and reporting these transactions

• is the process of recording financial transactions pertaining to a business

• is regarded as separate legal entities from the people who own and run them

What are those main types of limited companies?

• Public limited companies and Stock limited companies

• Stock limited companies and Private limited companies

• Private limited companies and Public limited companies

• Stock exchange companies and Shareholders companies

Which one is the advantage of limited company features?

• Legal formalities of forming a company are more complex

• Ownerships owned by its shareholders

• A lot of paperwork including financial audits

• Profits must be shared

Four most common examples of derivative instruments are .....

• swaps, contract, index and commodities

• options, swaps, contract and index

• futures, options, swaps and contract

• forwards, futures, options and swaps