Yet Another quiz for the financial fanatics, from FINATIX!!

Q1)       The critical variable in the determination of the success of the active portfolio is

            A)  Alpha/systematic risk

            B)  Alpha/nonsystematic risk

            C)  Gamma/systematic risk

            D)  Gamma/nonsystematic risk

            E)  None of the above

 Q2)      In an inflationary trend, the pricing of the bank products are:

A) Decreasing trend

B) Constant

C) Increasing trend

            D) No relevance

Q3)    The Black-Litterman model is geared toward ____________ while the Treynor-Black model is geared toward ____________.

            A)  Security analysis; security analysis

            B)  Asset allocation; asset allocation

            C)  Security analysis; asset allocation

            D)  Asset allocation; security analysis

            E)  None of the above

Q4)    The tracking error of an optimized portfolio can be expressed in terms of the ____________ of the portfolio and thus reveal ____________.

            A)  Return; portfolio performance

            B)  Total risk; portfolio performance

            C)  Beta; portfolio performance

            D)  Beta; benchmark risk

            E)  Relative return; benchmark risk

 Q5)    What do activity ratios measure?

            A) How rapidly assets flow through the firm

            B) How frequently the firm’s stock is traded

            C) The employee turnover rate

            D) The profitableness of accounts receivable 

 Q6)    If interest rates rise, the price of preferred stock

           A) Is not affected

           B) Rises

           C) Falls

           D) May rise or fall 

Q7)    A negatively-sloped yield curve suggests that

         A) Short-term rates exceed long-term rates, and the Federal Reserve is following a tight monetary policy

         B) Short-term rates exceed long-term rates, and the Federal Reserve is following an easy monetary policy

         C) Long-term rates exceed short-term rates, and the Federal Reserve is following a tight monetary policy

         D) Long-term rates exceed short-term rates, and the Federal Reserve is following an easy monetary policy 

Q8)  Sutanu the trader purchases a 1-month out-of-the-money American call option on a stock. A week later,the        

       stock price is less than the call option strike price. The time value of the option is most likely would be a :

        A) A positive amount.

        B) A negative amount. 

        C) Zero.

        D) None of the above

Q9)  The trade terms "2/15, net 30" indicate that:

        A) a 2% discount is offered if payment is made within 15 days.

        B) a 15% discount is offered if payment is made within 30 days.

        C) a 2% discount is offered if payment is made within 30 days.

        D) a 30% discount is offered if payment is made within 15 days.

Q10)  Time consumed in clearing a check through the banking system is.

       A) Processing float

       B) Deposit float

       C) Collection float

       D) Availability float


Answer all the Questions correctly, to win exciting prizes ............!!!!!!!


Answers to the Quiz



1. B) 
2. D)
3. D)
4. C)
5. A)
6. C)
7. A)
8. B)
9. A)
10.A)