1. Typically covers such issues as capital structure, short term and long-term financing, project analysis.

Current
asset management.
a. Investment
b. Investment Portfolio
c. Corporate finance
d. Finance
2. Addresses the question of what type of long term financing is the best for the company under current and
forecasted market conditions.
a. Current Asset
b. Capital structure
c. Corporate finance
d. Investment
3. Using financial markets and involves financial intermediaries.
a. Individual investment
b. Institutional investment
c. Direct Investing
d. Investment
4. An asset divisible if investor can buy or sell small portion of it.
a. Financial asset
b. Market Asset
c. Income
d. Holding period
5. Reflects the feasibility of converting the asset into cash quickly and without affecting its price.
a. Financial asset
b. Marketability
c. Financial
d. Investment
6. Defined as the time between signing a purchasing order for asset and selling the asset.

a. Financial asset
b. Marketability
c. Investment
d. Holding period
7. A debt instrument issued by bank that indicates a specified sum of money has been deposited at the issuing
depository institution.
a. Treasury bills
b. Commercial paper
c. Certificate of deposit
d. Cash deposit
8. A short term unsecured promissory notes issued by corporation.
a. Treasury bills
b. Commercial paper
c. Certificate of deposit
d. Cash deposit
9. Securities representing financial obligations, of the government.
a. Treasury bills
b. Commercial paper
c. Certificate of deposit
d. Cash deposit
10. A vehicle created to facilitate commercial trade transactions.
a. Short term vehicle
b. Banker's acceptance
c. Long term vehicle
d. Investment
11. The sale of security with a commitment by the seller to buy the security back from the purchaser at a specified
price at a designated future date.
a. Short term vehicle
b. Long term debt
c. Common Stocks
d. Income stocks
12. Are equity security, which has infinitive life and pay dividends.
a. Preferred stocks
b. Stocks
c. Repurchase agreement
d. Common stock
13. Other type of investment vehicles which is one of most popular among investors with long term horizon of
their investment.
a. Preferred stocks
b. Stocks
c. Income stocks
d. Common stocks
14. They received money from investors with the common objective of pooling the funds and then investing them
in securities according to a stated set of investment objectives.
a. Open end funds
b. Investment funds
c. Pension funds
d. Insurance
15. A business of assuming the risk of adverse events in exchange for a flow of insurance premiums.
a. Open end funds
b. Investment funds
c. Pension fund
d. Insurance
16. Publicity traded investment companies that have issued a specified number of shares and can only issue
additional shares through a new public issue.
a. Open end funds
b. Closed end funds
c. Insurance
d. Pension funds
17. No pre-determined amount of stocks outstanding and they can buy back or issue new shares at any point.
a. Open end funds
b. Closed end funds
c. Insurance
d. Pension funds
18. Investing the funds according to a stated set of investment objectives in securities and real state.
a. Open end funds
b. Closed end funds
c. Insurance
d. Pension funds
19. Another important component of investment environment.
a. Investment funds
b. Pesion funds
c. Financial Market
d. Open end fund
20. Issued securities are traded among investors.
a. Primary market
b. Secondary market
c. Market
d. Third Market
21. Corporate and government entities can raise capital and where the first transactions with the new issued
securities are performed.
a. Primary market
b. Secondary market
c. Market
d. Third Market
22. Associated with the market purchasing power risk, interest rate risk and liquidity risk.
a. Systematic risk
b. Unsystematic risk
c. Measuring risk
d. CAPM
23. Unique to an individual asset and can be diversified away by holding many different assets in the portfolio.
a. Systematic risk
b. Unsystematic risk
c. Measuring risk
d. CAPM
24. Based on identification of two key components of total risk.
a. Systematic risk
b. Unsystematic risk
c. Measuring risk
d. CAPM
25. Means that the price which an investor is paying for financial asset fully reflects fair or true information about
the intrinsic value of this specific asset or fairly describes the value of the company.
a. Capital Market
b. Markets
c. Market Theory
d. Market Efficiency
26. Units of corporate debt issued by companies and securities as tradeable assets.
a. Stocks
b. Bonds
c. Market
d. Investment
27. The price at which the bond issuer originally sells the bonds.
a. Bonds
b. Stocks
c. Face Value
d. The issue price
28. The dates on which the bond issuer will make interest payments.
a. Stocks dates
b. Maturity dates
c. Coupon dates
d. Face value
29. The money amount the bond will be worth at maturity.
a. Coupon rate
b. Maturity dates
c. Coupon dates
d. Face value
30. The dates on which the bond issuer will pay the bondholder the face value of the bond.
a. Coupon rate
b. Maturity dates
c. Coupon dates
d. face value
31. Companies issue bonds rather than seek bank loans for debt financing in many cases because bond markets
offer more favorable terms and lower interest rates.
a. Government bonds
b. Corporate bonds
c. Municipal Bonds
d. Maturity bonds
32. Are issued by the central or union to fund various government projects.
a. Government bonds
b. Corporate bonds
c. Municipal bonds
d. Maturity bond
33. Issued by the state and offer tax free coupon income for investors.
a. Government bonds
b. Corporates bonds
c. Municipal bonds
d. Maturity bond
34. Issued by the government affiliated organizations.
a. Maturity bonds
b. Agency Bonds
c. Government bonds
d. Corporate bond
35. A place where investors go to trade equity securities such as common stocks and derivatives and future.
a. Stocks
b. Stock market
c. Market exchange
d. Investment
36. Stocks exchange members who help maintain an orderly market in the stocks for which they are registered.
a. Manager
b. CEO
c. Specialist
d. Investors
37. Buying and selling of shares in a certain company.
a. Odd lots
b. Trading stocks
c. investments
d. selling short
38. An academia discipline that merges financial and psychological and studies investor behavior.
a. Finance
b. Cost
c. Financial Behavior
d. Budget
39. Refers to a tendency to make choices based on one's own knowledge or skills.
a. Overconfidence
b. Confidence
c. Attitudes
d. Moral
40. Investors who may buy stocks and lose, they buy riskier stocks jo an effort to recoup the losses.
a. Risk
b. Disposition effect
c. Investment risk
d. House money effect

41. After experiencing losses, they are more cautious and less willing to take risk.
a. Endowment effect
b. Disposition effect
c. Snake-bite effect
d. Overconfidence
42. Individual place a greater emphasis on avoiding losses than on achieving gain.
a. Endowment effect
b. Disposition effect
c. Snake-bite effect
d. Overconfidence
43. Investors demand more selling than they would be willing to buy it.
a. Endowment effect
b. Disposition effect
c. Snake-bite effect
d. Overconfidence
44. Refers to memory, specifically the tendency to selectively remember.
a. Experimental bias
b. Herd behavior
c. Cognitive dissonance
d. Bias
45. States that people tend to mimic the financial behaviors of the majority.
a. Experimental bias
b. Herd behavior
c. Cognitive dissonance
d. Bias
46. People often misattributes the mood they are into investment decisions.
a. Budgeting
b. Mental accounting
c. Her behavior
d. Misattributes Bias

47. Refers to the propensity for people to allocate money for specific purposes.
a. Budgeting
b. Bias.
c. Endowment effect
d. Snake-bite effect
48. Investors are reluctant to cut their losses. Readily watch securities prices and track their portfolio' value with
pleasure.
a. Familiarity
b. Ostrich effect
c. Market sentiment
d. Bias
49. Investors feel optimistic when they the market is in peak while pessimistic when market is low.
a. Ostrich effect
b. Bias
c. Market sentiment
d. Familiarity
50. To help understand why people make certain financial choices and how those choices can affect market.
a. Bias
b. Ostrich effect
c. Financial behavior
d. Familiarity
51. An investor has a portfolio of stocks and bonds with a beta of 1.2. The market risk premium is 5%. According to
the CAPM, the investor's required rate of return on a new investment with a beta of 1.5 would be:
a. 6.75%
b. 7.5%
c. 8.25%
d. 9%
52. Which of the following is NOT a primary objective of portfolio management?
a. Maximizing returns
b. Minimizing risk
c. Maintaining liquidity
d. Minimizing taxes

53. What does the Capital Asset Pricing Model (CAPM) help investors determine?
a. Expected market returns
b. The optimal portfolio allocation
c. The risk-free rate of return
d. The systematic risk of an investment
54. When calculating the beta of a stock in a portfolio, which of the following indicates a stock that moves in the
same direction as the overall market?
a. Beta = 0
b. Beta = 1
c. Beta < 0
d. Beta > 1
55. What is the Sharpe ratio used for portfolio management?
a. To measure the portfolio's return on investment. To calculate the portfolio's alpha
b. To assess the risk-adjusted performance of a portfoliod. To determine the duration of bonds in the portfolio

Final reviewer

1.

2. What is the concept of diversification in portfolio management?

A. Concentrating investment
B. Spreading investment across prepared asset
C. Investing only in the stocks
D. Ignoring risk
3. Which of the following of risk that considers the entire portfolio rather than individual securities.
A. Beta
B. Standard division
C. Systematic risk
D. Portfolio Variance
4. The capital asset pricing model ( CAPM)is issue to?
A. Evaluate the performance due to CAPM
B. Asses the risk and return of an individual securities
C. Determined the optimal portfolio allocation
D. Analyze market risk
5 What does the sharpe ratio measure?
A. Risk-adjusted return per unit of total risk
B. Total return per unit risk
C. Market Votality
D. Liquidity risk
6. What is the purpose of risk free rate in Financial model like CAMP?
A. Eliminate all risk from portfolio
B. To measure all the risk associated with an investment
C. To serve as a benchmark for evaluating investment return
D. To determine expected return of oversee asset
7. Which of the following is an example of systematic risk?
A. Companies is specific news
B. Interest rate changes
C. Labor strike
D. Product
8. The modern portfolio theory suggests that?
A. Higher return always come with higher risk
B. Diversification can eliminate all types of risk
C. Investment should focus on individual securities selection
D. Historical performers the best protector of future returns
9. What does the term alpha represent in the context of investment performance?
A. Market return
B. Risk liquidity
C. Managers skill in generating excess return
D. Standard division
10. In a rare market which type of investment is likely to performed predictability better?
A. Good stocks
B. Defensive stocks
C. Small stocks
D. Expeculative stocks

11. What is the formula for calculating the beta of a stocks in a CAPM?
A. Beta equals variance time market return and stocks return
B. Beta equals correlation time market return and stocks return
C. Beta equals variance time market return over variance stocks return
D. Beta equals variance time market return and stocks return over variance market return
12. Which of the following is a measure of portfolio sensitivity to market movement?
A. Standard division
B. Beta
C. Sharpe ratio
D. Alpha
13. What does the efficient market hypothesis?
A. Market are always inefficient
B. Investors consistently out performed the market
C. All relivant information is already reflected in asset prices
D. Past performance is the best indicator of future performance
14. What is the purpose of investment policy statement ?
A. To forecast market trends
B. To outline an individual financial goals and constrain
C. To guide the market for optimal difference
D. To predict interest rate movement
15. What is the key difference of systematic risk and unsystematic risk?
A. An systematic risk is specific of particular company but unsystematic affect the entire market
B. Systematic risk is divertiable but unsystematic risk is non divertiable
C. Systematic risk is market related at cannot eliminated through diversification but unsystematic risk can be
reduce by diversification
D. Systematic risk is a short term but unsystematic is long term
16. Which of the following is not a primarily goal of Investment?
A. Maximize return
B. Minimize earn
C. Achieving financial goals
D. Maintaining liquidity

17. Which of ghe follow is not a type of investment risk?

A. Market risk
B. Interest rate risk
C. Inflation risk
D. Business risk
18. Which of the following is the most common way to measure investment risk?
A. Standard division
B. Beta
C. Sharpe ratio
D. Treynor ratio
19. Which of the following is not type of asset allocation?
A. Strategic asset allocation
B. Tactical asset allocation
C. Market lining
D. Active management
20. Which of the following is mot portfolio diversification?
A. Diversification by asset classes
B. Diversification by asset sectors
C. Diversification by geography
D. Diversification by market CAPM
21. Which of the following is not a type of Investment analysis?
A. Fundamental analysis
B. Technical analysis
C. Behavicural finance
D. Market lining
22. Which of the following is not a type of security?
A. Stocks
B. Bonds
C. Mutual Bond
D. Option contrast

23. Which of the following is not a type kf market order?

A. Market order
B. Level order
C. Stock order
D. GTC order
24. Which of the following is not a type of investment account?
A. Individual retirement account ( IRA)
B. Both IRA
C. Form Ol plan
D. Health saving account
25. Which of the following is not a type of investment advisor?
A. Registered investment advisor
B. Certified financial planner
C. Tarter financial analysis
D. Registered securities representative
26. Which of the following is not a type of financial fraud?
A. Consistive
B. Boiler room operation
C. Market manipulation
D. Inside trade
27. Which of the following is not a way to protect yourself from investment fraud?
A. Diversifying your portfolio
B. Investing in only debutable government
C. Doing your research
D. Investing in only high yield investment
28. Which of the following is not benefits of investing?
A. Growing your wealth
B. Reaching your financial goals
C. Protecting yourself from inflation
D. Generating income

29. Which of the following is not a risk of investment?

A. Losing money
B. Not reaching your financial goal
C. Expressing emotional stress
D. Generating too much income
30. Which of the following is the most important thing to remember about investing?
A. Past performance is not necessarily indicate of future result
B. Theirs such thing as a freelance
C. Diversification is dividend
D. It is important to have long term investment horizon