WorksheetsCapital markets
Total questions: 10
Worksheet time: 5mins
Name
Class
Date
1.
If you expect that the price of a stock will decline, which of the following are you most likely do?
a)
Buy a put option on the stock.
b)
Buy a call option on the stock.
c)
Write a put option on the stock.
d)
Buy the stock on margin.
2.
The Nasdaq is an example of:
a)
an exchange.
b)
an over-the-counter market.
3.
A share of common stock is an example of:
a)
a capital security.
b)
a money market security.
4.
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:
a)
-7.5%
b)
-2.7%
c)
-2.5%
d)
2.5%
5.
If you buy a 30-day Treasury bill for 99.75, the discount yield on this security is closest to:
a)
3%
b)
3.0075%
c)
3.0493%
d)
3.0417%
6.
Commercial paper is an example of a:
a)
capital market instrument.
b)
money market instrument.
7.
The self-regulatory organization for brokers and dealers is the:
a)
SEC.
b)
FINRA.
c)
NYSE.
8.
An example of an open-ended fund is:
a)
an ETF.
b)
a mutual fund.
c)
a unit investment trust.
9.
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?
a)
0.585%
b)
0.667%
c)
2%
10.
If an investment earns 2% the first six months and 3% the second six months, its annual return is closest to:
a)
5%
b)
5.06%
c)
6%
100 %
