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1、MBA641:InvestmentsandPortfolioManagementMidtermExaminationPRACTICEJanuary2013Name:___________________Instruction:Pleasewritelegibly.Youneedtoshowstepstogetfullcredit.PartA:MultipleChoice(3pointseach,total60points).Pleasecircletherightanswer.1.?Theefficientmarketshypothesiss
2、uggeststhat_______.?A.?activeportfoliomanagementstrategiesarethemostappropriateinvestmentstrategiesB.?passiveportfoliomanagementstrategiesarethemostappropriateinvestmentstrategiesC.?eitheractiveorpassivestrategiesmaybeappropriate,dependingontheexpecteddirectionofthemarketD.
3、?abottomupapproachisthemostappropriateinvestmentstrategy?2.?IncalculatingtheDowJonesIndustrialAverage,theadjustmentforastocksplitoccurs_________.?A.?automaticallyB.?byadjustingthedivisorC.?byadjustingthenumeratorD.?byadjustingthemarketvalueweights3.?Ownershipofacalloptionen
4、titlestheownertothe__________to__________aspecificstock,onorbeforeaspecificdate,ataspecificprice.?A.?right,buyB.?right,sellC.?obligation,buyD.?obligation,sell4.?Youdecidetopurchaseanequalnumberofsharesofstocksoffirmstocreateaportfolio.Ifyouwishedtoconstructanindextotrackyou
5、rportfolioperformanceyourbestmatchforyourportfoliowouldbetoconstructa/an______.?A.?valueweightedindexB.?equalweightedindexC.?priceweightedindexD.?bondpriceindex75.?Ina___________indexchangesinthevalueofthestockwiththegreatestmarketvaluewillmovetheindexvaluethemosteverything
6、elseequal.?A.?valueweightedindexB.?equalweightedindexC.?priceweightedindexD.?bondpriceindex6.?A______dropintheDowJonesIndustrialAveragewouldstoptradingfortheday.?A.?10%B.?20%C.?30%D.?40%7.?Ifaninvestorplacesa_________orderthestockwillbesoldifitspricefallstothestipulatedleve
7、l.Ifaninvestorplacesa__________orderthestockwillbeboughtifitspricerisesabovethestipulatedlevel.?A.?stop-buy;stop-lossB.?market;limitC.?stop-loss;stop-buyD.?limit;market8.?The__________systemenablesexchangememberstosendordersdirectlytoaspecialistovercomputerlines.?A.?FAXB.?D
8、irectPlusC.?NASDAQD.?SUPERDOT9.?Thedifferencebetweenthepriceatwhichadealeriswillin