Random #9

Question 1

An increase in interest rates may strengthen the dollar? T or F

Answer 1

True

Question 2

Auditor statements on financial statements are

Answer 2

unqualified

Question 3

DeShawn is reviewing the past performance on his portfolio. His annual returns have been 10%, 8%, 12%, 4%, -3%, and 5%. What is DeShawn’s median return?

Answer 3

6.5
Put them in order and take the average of the two in the middle.

Question 4

What is the risk with bank CD’s?

Answer 4

Bank CDs have liquidity risk and reinvestment risk! Bank CDs do not have interest rate risk.

Question 5

You would sell a covered call if you expect?

Question 6

ALPHA is not used to measure?

Answer 6

volatility

Question 7

Alpha measures?

Answer 7

Excess return

Question 8

Beta measures?

Answer 8

volatility or risk of an asset

Question 9

When does settlement occur for stocks and options?

Answer 9

T+2 for stocks
T+1 for options

Question 10

When was the SEC Created

Answer 10

1934

Question 11

In a set of results where there is an “outlier,” statisticians prefer to use which method of central tendency?

Answer 11

Median (leave the outlier in)

Question 12

Is a deferred comp plan qualified or Non-qualified

Answer 12

Non-qualified

Question 13

What is an intermediate maturity rate

Answer 13

less than 10 years

Question 14

When do Treasury bonds usually mature?

Answer 14

Between 10 and 30 years

Question 15

Treasury bills range in maturity from:

Answer 15

4-52 weeks and are auctioned off weekly

Question 16

method of investing that attempts to maintain a fixed dollar amount in a specific asset class

Answer 16

Constant dollar plan or dollar cost averaging to get to the fixed dollar amount