Equity Markets

Which is the most important equity market according the capitalization?

• EU

• US

• China

• DM

If we would like to analyse an ETF, in which market is it?

• Secondary market

• Primary market

• IPO

Which are the most important stock exchanges in US market?

• LSE & RUSEL500

• DOW JONES & S&P500

• NYSE & NASDAQ

Which is the most representative mexican stock index?

A stock exchange is the same as a index stock?

• TRUE

• FALSE

Calculate the following Dollar return:

$ Invested: 1,000

Share price: $40 USD

Share price 1 month later: $ 45 USD

Dividend: $2.50

• $125

• $63

• $188

Which asset class has the highest level of risk?

• Gold

• Bonds

• Stocks

• TBills

We define as________ the extra return on a risky asset over the risk free rate. Example: The reward for bearing risk.

• Risk free rate

• Systematic risk

• Risk premium

According with this chart, we conclude that the relationship between risk and return is......

• Inverse

• Direct

• Neutral

The ________ represents compesation for just waiting. Therefor, this is often called the time value of money.

• Risk free rate

• Systematic risk

• Risk premium