|
FIN630 Midterm 2011 Paper Shared by Tahir Naveed
MIDTERM EXAMINATION
SPRING 2011
Question No: 1 ( Marks: 1 ) - Please choose one
Each division of the Standard Industrial Classification has several major industry groups, designated by which of the following codes?
Select correct option:
A uni-digit code
A bilingual code
A two-digit code
A tentative code
Question No: 2 ( Marks: 1 ) - Please choose one
The Elliott Wave Theory is based on which of the following?
Select correct option:
A repeating 2 wave cycle
A repeating 4 wave cycle
A repeating 8 wave cycle
A repeating 16 wave cycle
Question No: 3 ( Marks: 1 ) - Please choose one
On Balance Volume one of technical indicator use _______ as base.
Select correct option:
Demand
Supply
Volume
Price
Question No: 4 ( Marks: 1 ) - Please choose one
Companies that have capitalization amounts between $500 million and $2billion
are known as _________.
► Small cap companies
► Mid cap companies
► Growth companies
► Large cap companies
www.vu.ysapak.com
Question No: 5 ( Marks: 1 ) - Please choose one
Market value for shares of Company A is Rs. 500, company is paying an annul dividend
of Rs. 10 to shareholders whereas earning par share is Rs. 100. What will be its P/E ratio?
Select correct option:
10
5.1
5
4.9
Question No: 6 ( Marks: 1 ) - Please choose one
In candlestick chart, what does white body candle depict?
► Prices are moving down
► Prices are moving up
► Prices are constant
► Prices are fluctuating
Question No: 7 ( Marks: 1 ) - Please choose one
_____________ enables market participants to get accurate and up-to-date
price information.
► Fair pricing function
► Continuous pricing function
► Economic function
► Exchange function
Question No: 8 ( Marks: 1 ) - Please choose one
Which of the following is not an asset?
► accounts payable
► equipment
► supplies
► cash
Question No: 9 ( Marks: 1 ) - Please choose one
Bid price for the shares is Rs. 650 and ask price is Rs. 640. What will be the spread in
this case?
Select correct option:
Rs. 10
Rs. 1290
Rs. 645
Rs. 200
Question No: 10 ( Marks: 1 ) - Please choose one
Which of the following allows you to specify the most you are willing to pay when
buying or the least you are willing to accept when selling?
► limit order
► market order
► stop order
► good till cancelled order
Question No: 11 ( Marks: 1 ) - Please choose one
An efficient market reflects which of the following information?
Past, current and inferred information
Future and past information
Past and current information
Current and inferred information
Question No: 12 ( Marks: 1 ) - Please choose one
__________ is a temporary restriction on program trading in a particular security or
market, usually to reduce dramatic price movements.
► superdot
► nyse direct
► trading curb
► ticker tape
Question No: 13 ( Marks: 1 ) - Please choose one
Which of the following is relevant to market breadth?
► Specialist inventory
► Advance/declining ratio
► Fundamental analysis
► Ticker tape
Question No: 14 ( Marks: 1 ) - Please choose one
On Balance Volume technique of technical analysis was developed by:
► Charles Dow
► Joseph Granville
► John Bollinger
► Welles Wilder
Question No: 15 ( Marks: 1 ) - Please choose one
According to Dow Theory, primary trend is a:
► Short term trend
► Long term trend
► Medium term trend
► None of the given options
www.vu.ysapak.com
www.vu.ysapak.com
Question No: 16 ( Marks: 1 ) - Please choose one
The circuit breaker that is applied where stock prices in the market are dropping is known
as which of the following?
Select correct option:
Starter
Floor
Ceiling
Simulator
Question No: 17 ( Marks: 1 ) - Please choose one
Which of the following function removes the fear of buying or selling at rip off price?
► Fair pricing function
► Continuous pricing function
► Economic function
► Exchange function
Question No: 18 ( Marks: 1 ) - Please choose one
____________ are financial intermediaries that hold a portfolio of securities on
behalf of their shareholders.
► banking companies
► growth companies
► value companies
► investment companies
Question No: 19 ( Marks: 1 ) - Please choose one
Which of the following industry is sensitive to business cycle and price changes?
Growth industry
Cyclical industry
Defensive industry
Interest sensitive industry
Question No: 20 ( Marks: 1 ) - Please choose one
Financial securities with a maturity of less than a year from their original issue date are
sold in which of following market?
Money market
Bond market
Equity market
Derivative market
Question No: 21 ( Marks: 1 ) - Please choose vu zs one
The primary purpose of the liquidity ratios is to determine:
► the amount of earnings paid to shareholders
► the amount of working capital tied up in inventory
► The ability of a firm to pay off short-term obligations
► the relative level of short-term debt
Question No: 22 ( Marks: 1 ) - Please choose one
The average price of a security or currency over a specified time period used to
spot
pricing trends by smoothing out the large fluctuations is known as:
► Moving Average
► Standard deviation
► Variance
► Beta
Question No: 23 ( Marks: 1 ) - Please choose one
Which of the following is TRUE regarding price earning ratio?
► P/E=Earnings available to common stockholders/outstanding shares
► P/E=Market price per share/dividend per share
► P/E=Market price per share/earning per share
► P/E=Dividend per share/earning per share
Question No: 24 ( Marks: 1 ) - Please choose one
The primary purpose of the liquidity ratios is to determine:
► the amount of earnings paid to shareholders
► the amount of working capital tied up in inventory
► the ability of a firm to pay off short-term obligations
► the relative level of short-term debt
Question No: 25 ( Marks: 1 ) - Please choose one
Under Dividend Discount Model (DDM) which of the following indicates that stock is
overvalued?
Select correct option:
Value of stock from DDM > current trading price of stock
Value of stock from DDM < current trading price of stock
Value of stock from DDM = current trading price of stock
None of the given options
Question No: 26 ( Marks: 1 ) - Please choose one
_________ provides an automatic execution of limit orders up to 1,099 shares at
the best bid or offer.
► SuperDOT
► NASDAQ
► Auction market
► NYSE direct
Question No: 27 ( Marks: 1 ) - Please choose vuzs one
The Standard Industrial Classification codes have how many divisions?
Select correct option:
9
11
13
15
Question No: 28 ( Marks: 1 ) - Please choose one
A company is currently paying dividend of Rs. 12 to shareholders and the dividend growth rate is 5%. What will be the amount of dividend for next year?
Select correct option:
D1 = 12* (1+0.05) = 12.6
D1 = 12* (1-0.05) = 11.4
D1 = 12 / (1- 0.05) = 12.6
D1 = 12 / (1+0.05) = 12.63
www.vu.ysapak.com
www.vu.ysapak.com
Question No: 29 ( Marks: 3 )
What is the difference between a load fund and non-load fund? 3 marks
A mutual fund in which shares are sold without a commission or sales charge is known as non-load fund. The reason for this is that the shares are distributed directly by the investment company, instead of going through a secondary party. This is the opposite of a load fund, which charges a commission at the time of the fund's purchase, at the time of its sale, or as a "level-load" for as long as the investor holds the fund.
Question No: 30 ( Marks: 3 )
Why you as investor would prefer investing in money market mutual funds?
Money market funds concentrate on short-term investing by holding portfolios of money market assets. Money market deposit accounts (MMDAs) pay competitive money market rates and are insured, and therefore have attracted large amounts of funds.
http://www.ysapak.com/YSAforum/index.php/topic,4413.new.html#new
MIDTERM EXAMINATION
SPRING 2011
Question No: 1 ( Marks: 1 ) - Please choose one
Each division of the Standard Industrial Classification has several major industry groups, designated by which of the following codes?
Select correct option:
A uni-digit code
A bilingual code
A two-digit code
A tentative code
Question No: 2 ( Marks: 1 ) - Please choose one
The Elliott Wave Theory is based on which of the following?
Select correct option:
A repeating 2 wave cycle
A repeating 4 wave cycle
A repeating 8 wave cycle
A repeating 16 wave cycle
Question No: 3 ( Marks: 1 ) - Please choose one
On Balance Volume one of technical indicator use _______ as base.
Select correct option:
Demand
Supply
Volume
Price
Question No: 4 ( Marks: 1 ) - Please choose one
Companies that have capitalization amounts between $500 million and $2billion
are known as _________.
► Small cap companies
► Mid cap companies
► Growth companies
► Large cap companies
www.vu.ysapak.com
Question No: 5 ( Marks: 1 ) - Please choose one
Market value for shares of Company A is Rs. 500, company is paying an annul dividend
of Rs. 10 to shareholders whereas earning par share is Rs. 100. What will be its P/E ratio?
Select correct option:
10
5.1
5
4.9
Question No: 6 ( Marks: 1 ) - Please choose one
In candlestick chart, what does white body candle depict?
► Prices are moving down
► Prices are moving up
► Prices are constant
► Prices are fluctuating
Question No: 7 ( Marks: 1 ) - Please choose one
_____________ enables market participants to get accurate and up-to-date
price information.
► Fair pricing function
► Continuous pricing function
► Economic function
► Exchange function
Question No: 8 ( Marks: 1 ) - Please choose one
Which of the following is not an asset?
► accounts payable
► equipment
► supplies
► cash
Question No: 9 ( Marks: 1 ) - Please choose one
Bid price for the shares is Rs. 650 and ask price is Rs. 640. What will be the spread in
this case?
Select correct option:
Rs. 10
Rs. 1290
Rs. 645
Rs. 200
Question No: 10 ( Marks: 1 ) - Please choose one
Which of the following allows you to specify the most you are willing to pay when
buying or the least you are willing to accept when selling?
► limit order
► market order
► stop order
► good till cancelled order
Question No: 11 ( Marks: 1 ) - Please choose one
An efficient market reflects which of the following information?
Past, current and inferred information
Future and past information
Past and current information
Current and inferred information
Question No: 12 ( Marks: 1 ) - Please choose one
__________ is a temporary restriction on program trading in a particular security or
market, usually to reduce dramatic price movements.
► superdot
► nyse direct
► trading curb
► ticker tape
Question No: 13 ( Marks: 1 ) - Please choose one
Which of the following is relevant to market breadth?
► Specialist inventory
► Advance/declining ratio
► Fundamental analysis
► Ticker tape
Question No: 14 ( Marks: 1 ) - Please choose one
On Balance Volume technique of technical analysis was developed by:
► Charles Dow
► Joseph Granville
► John Bollinger
► Welles Wilder
Question No: 15 ( Marks: 1 ) - Please choose one
According to Dow Theory, primary trend is a:
► Short term trend
► Long term trend
► Medium term trend
► None of the given options
www.vu.ysapak.com
www.vu.ysapak.com
Question No: 16 ( Marks: 1 ) - Please choose one
The circuit breaker that is applied where stock prices in the market are dropping is known
as which of the following?
Select correct option:
Starter
Floor
Ceiling
Simulator
Question No: 17 ( Marks: 1 ) - Please choose one
Which of the following function removes the fear of buying or selling at rip off price?
► Fair pricing function
► Continuous pricing function
► Economic function
► Exchange function
Question No: 18 ( Marks: 1 ) - Please choose one
____________ are financial intermediaries that hold a portfolio of securities on
behalf of their shareholders.
► banking companies
► growth companies
► value companies
► investment companies
Question No: 19 ( Marks: 1 ) - Please choose one
Which of the following industry is sensitive to business cycle and price changes?
Growth industry
Cyclical industry
Defensive industry
Interest sensitive industry
Question No: 20 ( Marks: 1 ) - Please choose one
Financial securities with a maturity of less than a year from their original issue date are
sold in which of following market?
Money market
Bond market
Equity market
Derivative market
Question No: 21 ( Marks: 1 ) - Please choose vu zs one
The primary purpose of the liquidity ratios is to determine:
► the amount of earnings paid to shareholders
► the amount of working capital tied up in inventory
► The ability of a firm to pay off short-term obligations
► the relative level of short-term debt
Question No: 22 ( Marks: 1 ) - Please choose one
The average price of a security or currency over a specified time period used to
spot
pricing trends by smoothing out the large fluctuations is known as:
► Moving Average
► Standard deviation
► Variance
► Beta
Question No: 23 ( Marks: 1 ) - Please choose one
Which of the following is TRUE regarding price earning ratio?
► P/E=Earnings available to common stockholders/outstanding shares
► P/E=Market price per share/dividend per share
► P/E=Market price per share/earning per share
► P/E=Dividend per share/earning per share
Question No: 24 ( Marks: 1 ) - Please choose one
The primary purpose of the liquidity ratios is to determine:
► the amount of earnings paid to shareholders
► the amount of working capital tied up in inventory
► the ability of a firm to pay off short-term obligations
► the relative level of short-term debt
Question No: 25 ( Marks: 1 ) - Please choose one
Under Dividend Discount Model (DDM) which of the following indicates that stock is
overvalued?
Select correct option:
Value of stock from DDM > current trading price of stock
Value of stock from DDM < current trading price of stock
Value of stock from DDM = current trading price of stock
None of the given options
Question No: 26 ( Marks: 1 ) - Please choose one
_________ provides an automatic execution of limit orders up to 1,099 shares at
the best bid or offer.
► SuperDOT
► NASDAQ
► Auction market
► NYSE direct
Question No: 27 ( Marks: 1 ) - Please choose vuzs one
The Standard Industrial Classification codes have how many divisions?
Select correct option:
9
11
13
15
Question No: 28 ( Marks: 1 ) - Please choose one
A company is currently paying dividend of Rs. 12 to shareholders and the dividend growth rate is 5%. What will be the amount of dividend for next year?
Select correct option:
D1 = 12* (1+0.05) = 12.6
D1 = 12* (1-0.05) = 11.4
D1 = 12 / (1- 0.05) = 12.6
D1 = 12 / (1+0.05) = 12.63
www.vu.ysapak.com
www.vu.ysapak.com
Question No: 29 ( Marks: 3 )
What is the difference between a load fund and non-load fund? 3 marks
A mutual fund in which shares are sold without a commission or sales charge is known as non-load fund. The reason for this is that the shares are distributed directly by the investment company, instead of going through a secondary party. This is the opposite of a load fund, which charges a commission at the time of the fund's purchase, at the time of its sale, or as a "level-load" for as long as the investor holds the fund.
Question No: 30 ( Marks: 3 )
Why you as investor would prefer investing in money market mutual funds?
Money market funds concentrate on short-term investing by holding portfolios of money market assets. Money market deposit accounts (MMDAs) pay competitive money market rates and are insured, and therefore have attracted large amounts of funds.
http://www.ysapak.com/YSAforum/index.php/topic,4413.new.html#new