Perfectly ________ correlated series move exactly together and have a correlation coefficient of ________, while perfectly ________ correlated series move exactly in opposite directions and have a correlation coefficient of ________.

________ is the chance of loss or the variability of returns associated with a given asset.

portfolio means combination of

In portfolio management which aspect should be maximized?

stocks and bonds should be classified as;

Which of the following is considered as risk free investment?

Most investors are risk averse which means:

The SENSEX has

putting money at risk by betting on an uncertain outcome;

If the price of a share at the beginning of the year was Rs.70/-, dividend received during the year was Rs.5/-per share and the price at the end is Rs.79/-. What is the rate of return?

The objective of fundamental analysis for a security in a market is to identify either it is

larger the beta

company analysis try to answer the questions; (choose any two)

Price-Earning Ratio=

tick any three qualitative variables taken into consider while doing a fundamental analysis

What is the term describing an overall decrease in stock prices?

Stock exchange is known as __________ market for securities.

EIC frame work analysis includes ( tick the variables)

Economic Forecasting Techniques include;

(tick any two)

What are blue-chip stocks?

Which of the following best describes MLS or Major Level of Structure?

How do you earn in stocks?

Which of the following indicators track the closing average prices of stocks at a given period?

Which of the following indicator is useful in trending stocks and read via dots placed either above or below stock prices?

An RSI in above 70 indicates an overbought stock.

An RSI below 30 indicates that the stock is oversold.

Smooth Moving Average or SMA can also be used as support and resistance in mapping out stock prices.

Past performance of the stock can be used to predict its future movement.

IPO means?

The wick of the candlestick can give what information?

Which indicator typically include three components

(a.the MACD line, b.the Signal line, c. a histogram of the difference between the two)?

What kind of Analysis is using past market data to analyze stocks and make better trading decisions.

Which is NOT AN ASSUMPTION in Technical Analysis?

Which are the Concepts in Technical Analysis?

If the candle is green, it means that the closing price was higher than the opening price.

If it is red, it means the opening price was lower than the closing price.

When are you advised to BUY stocks?

There are always going to be ups and downs in the stock market and in every stock, but these ups and downs will eventually form a trend that moves in some general direction—this is actually one of the key assumptions of TA.

This is the point where the stock price usually starts going down because there is too much supply and not enough demand.

What are the 3 Kinds of Trends in the Trend Analysis?

What tells you the number of shares that were bought and sold in a particular time frame (usually a day). You can see this shown as a bar graph at the bottom of the stock chart.

Fundamental analysis is the study of basic, underlying factors that will affect the supply and demand of the commodity being traded in futures contracts.

The market is strong when prices are rising even though volume is decreasing.

Which of the following best describes fundamental analysis?

Which of the following assumption does the constant growth dividend discount model require?

A. Dividend grow at a constant rate

B. Dividend growth rate continues indefinitely

C.The required rate of return is less than dividend growth rate

inflation risk arises due to:

What is the main purpose of the stock market?

People who buy shares in expectation of a price rise on the stock market are called

People who sell shares in expectation of a drop in price on the stock market are called...

One of the methods used to analyze securities and make investment decisions

One assumption of technical analysis is that price move in

Technical Analysis is best viewed using

What valuation process is used for technical analysis?

What is the most important element in a chart?

In a practical market psychology, buyers want to buy at what price?

A continuous primary upward trend

The last price traded for the day and used for analysis.

What represent the X axis of the chart?

When the closing price is lower than the opening price in a candlestick chart.

Which of the following is NOT an important consideration in trading using Moving Averages?

In our use of MAs, what very important data does it track in your price chart?

Which of the following accurately describes the difference between your SMA and EMA?

If EMA gives a higher weighting to recent prices, while the SMA assigns an equal weighting to all values, which of them is more SENSITIVE to price fluctuation?

Which MA period can tell if the stock has completely gone out of the bear territory?

This occurs when the 50-day SMA crosses below the 200-day SMA.

This occurs when a short-term SMA breaks above a long-term SMA

TRUE or FALSE: A golden cross reinforced with high trading volume gives bullish signal and higher gain may be in store.

Long-term bonds are ... than short-term bonds.

If a bond's yield to maturity is lower than its coupon rate, the bond will sell at a discount.

As a bond approaches its maturity date, its price necessarily approaches par value.

Which of the following statements is FALSE regarding bonds?

When the price of bond is calculated below its par value, it is classified as...

What is a bond?

When you purchase a municipal bond, you are:

A bond issued by a corporation is called a ________ .

The rate of interest on a bond is called the ________ .

A-15 year bond pays 11% on a face value of $1,000. If similar bonds are currently yielding 8%, what is the market value of the bond? Use annually.

If a bond's yield to maturity is lower than its coupon rate, the bond will sell at a discount.

What is usually the relationship between a bond's rating and the interest rate a

A bond which has a yield to maturity greater than its coupon rate will sell for a price

What will happen to the market value of a bond if interest rates rise?

A bond which has a yield to maturity greater than its coupon rate will sell for a price

If a bond was issued with a 5% coupon rate and the market rate is now 8%, the coupon payment:

Which one of the following types of securities has no priority in a bankruptcy proceeding?

Kate could not attend the last shareholders meeting and thus she granted the authority to vote on her behalf to the managers of the firm. Which one of the following terms is used to describe the method by which Kate's shares were voted?

What is the market called that allows shareholders to resell their shares to other investors?

Company X has a beta of of 1,45. The expected risk-free rate of interest is 2,5% and the expected return on the market as a whole is 10%. Using the CAPM, what is ABC's expected return?

Which statement about common stockholders is incorrect?

Assume that the dividend on Central Power Company's $3.25 preferred stock issue is paid annually at the end

of the year. Determine the price of this issue if its return is 12%.

Stock has growth rate 8%. just received an annual $3.24/share dividend per share. Required return is 15%

Preferred stock is similar to a bond in the following way:

Most preferred stocks have a feature that requires all past unpaid preferred dividend payments be paid before any common stock dividends can be paid. What is the name of this feature?

Stimpson Inc. preferred stock pays a $.50 annual dividend. What is the value of the stock if your required rate of return is 10%?

Which of the following changes will make the value of a stock go up, other things being held constant?

The expected rate of return on a share of common stock whose dividends are growing at a constant rate (g) is which of the following, where D1 is the next dividend and Vc is the current value of the stock?

Which of the following is an example of systematic risk?

Investors can eliminate what type of risk by diversifying?

Ahmad is considering investing in stocks. Which is the less risky investment?

Probability = 15%; Return = -5%

Probability = 20%; Return = 10%

Probability = 30%; Return = 15%

Probability = 35%; Return = 25%

What is the expected rate of return on the investment?

Below are all types of return except:

From the probability distribution provided, the expected return of the asset is closest to:

Consider the following 4 assets. If you have to select only one, which one would you pick if you are risk-averse?

If employees of a company go on strike, this is an example of which types of investment risk?

Plunging oil prices is an example of which of the following types of investment risk?

Investment A has an expected return of 15% per year, while Investment B has an expected return of 12% per year. A rational investor will choose

You are considering investing in Ford Motor Company. Which of the following are examples of diversifiable risk?

I. Risk resulting from possibility of a stock market crash.

II. Risk resulting from uncertainty regarding a possible strike against Ford.

III. Risk resulting from an expensive recall of a Ford product.

IV. Risk resulting from interest rates decreasing.

Which one of the following guarantees is offered to common stock investors?

The wider the dispersion of returns on a stock, the:

A stock is expected to return 11% in a normal economy, 19% if the economy booms, and lose 8% if the economy moves into a recessionary period. Economists predict a 65% chance of a normal economy, a 25% chance of a boom, and a 10% chance of a recession. What is the expected return on the stock?

Which of the following is an example of systematic risk?

The amount of cash moving into and out of a business

how much cash is received from the investment of a business owner, cash received from a bank loan, and the cash paid for a bank loan.