StudyXY
RegisterLog in

FIN 550: Midterm Exam on Investment and Portfolio Management

A midterm exam on investment strategies and portfolio management, with a focus on building diversified portfolios and assessing risk.

Lucas Allen
Contributor
4.9
49
5 months ago
Preview (3 of 8 Pages)
100%
Purchase to unlock

Page 1

FIN 550: Midterm Exam on Investment and Portfolio Management - Page 1 preview image

Loading page image...

FIN 550: Midterm Exam on Investment and Portfolio ManagementFIN 550 MIDTERMEXAMQuestion 1The uncertainty of investment returns associated with how a firm finances its investments isknown asAnswerBusiness risk.Liquidity risk.Exchange rate risk.Financial risk.Market risk.5 pointsQuestion 2Measures of risk for an investment includeAnswerVariance of returns and business riskCoefficient of variation of returns and financial riskBusiness risk and financial riskVariance of returns and coefficient of variation of returnsQuestion 3In the phrase "nominal risk free rate," nominal meansAnswerComputed.Historical.Market.Average.Risk adverse.Question 4All of the following are major sources of uncertainty EXCEPTAnswerBusiness riskFinancial riskDefault riskCountry riskLiquidity riskQuestion 5For an investor with a time horizon of 12 years and higher risk tolerance, an appropriate assetallocation strategy would beAnswer100% stocks30% cash, 50% bonds, and 20% stocks10% cash, 30% bonds, and 60% stocks50% bonds and 50% stocks

Page 2

FIN 550: Midterm Exam on Investment and Portfolio Management - Page 2 preview image

Loading page image...

Page 3

FIN 550: Midterm Exam on Investment and Portfolio Management - Page 3 preview image

Loading page image...

100% bonds5 pointsQuestion 6Which of the following is not a step in the portfolio management process?AnswerDevelop a policy statement.Study current financial and economic conditions.Construct the portfolio.Monitor investor's needs and market conditions.Sell all assets and reinvestment proceeds at least once a year.Question 7____ phase is the stage when investors in their early-to-middle earning years attempt toaccumulate assets to satisfy near-term needs, e.g., children's education or down payment on ahome.AnswerAccumulationSpendingGiftingConsolidationDivestitureQuestion 8____ refer(s) to the ability to convert assets to cash quickly and at a fair market price and oftenincrease(s) as one approaches the later stages of the investment life cycle.AnswerLiquidity needsTime horizonsLiquidation valuesLiquidation essentialsCapital liquidationsQuestion 9An agreement that provides for the future delivery or receipt of an asset at a specified date for aspecified price is aAnswerEurobonds contract.Futures contract.Put option contract.Call option contract.Warrant contract.Question 10The original maturity of a United States Treasury bond isAnswerZero years to five years.Six months to ten years.One year or less.One year to ten years.Over ten years.
Preview Mode

This document has 8 pages. Sign in to access the full document!

Study Now!

XY-Copilot AI
Unlimited Access
Secure Payment
Instant Access
24/7 Support
Document Chat

Document Details

University
Strayer University
Course
FIN 550
Subject
Finance

Related Documents

View all
Past Exams

Texas Life and Health Insurance Exam 150 Questions

A study-sharing site offering verified Q&A for the Texas Life and Health Insurance Exam. Ideal for candidates preparing for certification with updated 2023 content, covering key laws, policies, and insurance concepts.

Class Notes

Understanding Obligation and Deobligation in Resou

Obligation: legally reserving funds for expenses e.g: travel orders. Deobligation: adjusting obligations downward when actual costs are less, freeing funds for other needs. Ensures efficient effective use of finite resources in government operations.

Solved Assignments

Budgeting for Life After High School

High school budgeting activity featuring a real-life scenario for college student Lisa. Students create a zero-based budget using her income, expenses, and support funds to learn personal finance, savings, and responsible spending.

Solved Assignments

Ch 4 les 1

Zach, a college freshman, uses his new credit card with a 19% APR for emergencies during a work break, facing minimum payments that may lead to costly interest and debt.

Class Notes

Understanding Credit Reports Analyzing John's Fina

This activity uses John Doe's financial story and a sample credit report to help students learn how to read and understand credit reports. Students analyze his credit use, debts, and recent financial inquiries to answer related questions.

Solved Assignments

CEO pay at John Deere and Caterpillar

Compares CEO pay at two companies.

Solved Assignments

Efficiency Test in US Stock Market

An assignment analyzing the efficiency of the U.S. stock market and its financial implications.

Solved Assignments

Financial Research Report

A detailed report analyzing financial trends, risk factors, and economic indicators.

Solved Assignments

Financial Planning and Budget Analysis

A financial study on budgeting techniques and financial planning strategies.

Solved Assignments

WACC Project Verizon Communication Inc

This document provides a comprehensive analysis of the Weighted Average Cost of Capital (WACC) for Verizon, offering insights into financial decision-making and investment strategies.