投资学题库Chap001.docx

1、投资学题库Chap001Chapter 01The Investment EnvironmentMultiple Choice Questions1.The material wealth of a society is a function ofA.all financial assets.B.all real assets.C.all financial and real assets.D.all physical assets.2._ are real assets.A.LandB.MachinesC.Stocks and bondsD.KnowledgeE.Land, machines

2、, and knowledge3.The means by which individuals hold their claims on real assets in a well-developed economy areA.investment assets.B.depository assets.C.derivative assets.D.financial assets.E.exchange-driven assets.4._ are financial assets.A.BondsB.MachinesC.StocksD.Bonds and stocksE.Bonds, machine

3、s, and stocks5._ financial asset(s).A.Buildings areB.Land is aC.Derivatives areD.U.S. agency bonds areE.Derivatives and U.S. agency bonds are6.Financial assetsA.directly contribute to the countrys productive capacity.B.indirectly contribute to the countrys productive capacity.C.contribute to the cou

4、ntrys productive capacity both directly and indirectly.D.do not contribute to the countrys productive capacity either directly or indirectly.E.are of no value to anyone.7.In 2012, _ was the most significant real asset of U.S. households in terms of total value.A.consumer durablesB.automobilesC.real

5、estateD.mutual fund sharesE.bank loans8.In 2012, _ was the least significant financial asset of U.S. households in terms of total value.A.real estateB.mutual fund sharesC.debt securitiesD.life insurance reservesE.pension reserves9.In 2012, _ was the most significant financial asset of U.S. household

6、s in terms of total value.A.real estateB.mutual fund sharesC.debt securitiesD.life insurance reservesE.pension reserves10.In 2012, _ was the most significant asset of U.S. households in terms of total value.A.real estateB.mutual fund sharesC.debt securitiesD.life insurance reservesE.pension reserves

7、11.In 2012, _ was the most significant liability of U.S. households in terms of total value.A.credit cardsB.mortgagesC.bank loansD.student loansE.other debt12.Which of the following financial assets made up the greatest proportion of the financial assets held by U.S. households?A.Pension reservesB.L

8、ife insurance reservesC.Mutual fund sharesD.Debt securitiesE.Personal trusts13.In 2012 _ of the assets of U.S. households were financial assets as opposed to tangible assets.A.20.4%B.34.2%C.68.8%D.71.7%E.82.5%14.The largest component of domestic net worth in 2012 wasA.nonresidential real estate.B.re

9、sidential real estate.C.inventories.D.consumer durables.E.equipment and software.15.The smallest component of domestic net worth in 2012 wasA.nonresidential real estate.B.residential real estate.C.inventories.D.consumer durables.E.equipment and software.16.The national net worth of the U.S. in 2012

10、wasA.$15.411 trillion.B.$26.431 trillion.C.$42.669 trillion.D.$48.616 trillion.E.$70.983 trillion.17.A fixed-income security paysA.a fixed level of income for the life of the owner.B.a fixed stream of income or a stream of income that is determined according to a specified formula for the life of th

11、e security.C.a variable level of income for owners on a fixed income.D.a fixed or variable income stream at the option of the owner.18.A debt security paysA.a fixed level of income for the life of the owner.B.a variable level of income for owners on a fixed income.C.a fixed or variable income stream

12、 at the option of the owner.D.a fixed stream of income or a stream of income that is determined according to a specified formula for the life of the security.19.Money market securitiesA.are short term.B.are highly marketable.C.are generally very low risk.D.are highly marketable and are generally ver

13、y low risk.E.All of the options20.An example of a derivative security isA.a common share of Microsoft.B.a call option on Intel stock.C.a commodity futures contract.D.a call option on Intel stock and a commodity futures contract.E.a common share of Microsoft and a call option on Intel stock.21.The va

14、lue of a derivative securityA.depends on the value of the related security.B.is unable to be calculated.C.is unrelated to the value of the related security.D.has been enhanced due to the recent misuse and negative publicity regarding these instruments.E.is worthless today.22.Although derivatives can

15、 be used as speculative instruments, businesses most often use them toA.attract customers.B.appease stockholders.C.offset debt.D.hedge risks.E.enhance their balance sheets.23.Financial assets permit all of the following exceptA.consumption timing.B.allocation of risk.C.separation of ownership and co

16、ntrol.D.elimination of risk.24.The _ refers to the potential conflict between management and shareholders.A.agency problemB.diversification problemC.liquidity problemD.solvency problemE.regulatory problem25.A disadvantage of using stock options to compensate managers is thatA.it encourages managers

17、to undertake projects that will increase stock price.B.it encourages managers to engage in empire building.C.it can create an incentive for managers to manipulate information to prop up a stock price temporarily, giving them a chance to cash out before the price returns to a level reflective of the

18、firms true prospects.D.All of the options26.Which of the following are mechanisms that have evolved to mitigate potential agency problems?I) Using the firms stock options for compensationII) Hiring bickering family members as corporate spiesIII) Boards of directors forcing out underperforming manage

19、mentIV) Security analysts monitoring the firm closelyV) Takeover threatsA.II and VB.I, III, and IVC.I, III, IV, and VD.III, IV, and VE.I, III, and V27.Corporate shareholders are best protected from incompetent management decisions byA.the ability to engage in proxy fights.B.managements control of pe

20、cuniary rewards.C.the ability to call shareholder meetings.D.the threat of takeover by other firms.E.one-share/one-vote election rules.28.Theoretically, takeovers should result inA.improved management.B.increased stock price.C.increased benefits to existing management of taken-over firm.D.improved m

21、anagement and increased stock price.E.All of the options29.During the period between 2000 and 2002, a large number of scandals were uncovered. Most of these scandals were related toI) manipulation of financial data to misrepresent the actual condition of the firm.II) misleading and overly optimistic

22、 research reports produced by analysts.III) allocating IPOs to executives as a quid pro quo for personal favors. IV) greenmail.A.II, III, and IVB.I, II, and IVC.II and IVD.I, III, and IVE.I, II, and III30.The Sarbanes-Oxley ActA.requires corporations to have more independent directors.B.requires the

23、 firms CFO to personally vouch for the firms accounting statements.C.prohibits auditing firms from providing others to clients.D.requires corporations to have more independent directors and requires the firms CFO to personally vouch for the firms accounting statements.E.All of the options31.Asset al

24、location refers toA.choosing which securities to hold based on their valuation.B.investing only in safe securities.C.the allocation of assets into broad asset classes.D.bottom-up analysis.32.Security selection refers toA.choosing which securities to hold based on their valuation.B.investing only in

25、safe securities.C.the allocation of assets into broad asset classes.D.top-down analysis.33.Which of the following portfolio construction methods starts with security analysis?A.Top-downB.Bottom-upC.Middle-outD.Buy and holdE.Asset allocation34.Which of the following portfolio construction methods starts with asset allocation?A.Top-down