financial market
Authored by Fayzullokh Sattoriy
Business
University
Used 2+ times
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10 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The Dow Jones Industrial Average is:
An index of the stock prices of 30 large US companies
A government agency that regulates financial markets
A type of bond issued by the US Treasury
An investment fund that tracks the performance of the S&P 500
2.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
The yield on a bond is:
The rate of return an investor earns on a bond
The price of the bond divided by the face value of the bond
The annual divided by the face value of the bond
The difference between the face value of the bond and the market price of the bond
3.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
What is the purpose of diversification in a portfolio?
To maximize returns by investing in a single asset class
To increase the risk of the portfolio by investing in different asset classes
To reduce the risk of the portfolio by investing in different asset classes
To eliminate the need for rebalancing the portfolio
4.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
What is the purpose of a stock index?
To track the performance of a specific stock
To track the performance of a specific sector of the stock market
To track the performance of the entire stock market
To predict future stock market trends
5.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
According to the Capital Asset Pricing Model (CAPM), what is the expected return on an asset that has a beta of 1.5, a risk-free rate of 2%, and a market risk premium of 5%?
5.5%
6.5%
7.5%
9.5%
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does an increase in a company's debt affect its Weighted Average Cost of Capital (WACC)?
It increases the WACC
It decreases the WACC
It has no effect on the WACC
It depends on the company's beta
7.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is the difference between a common stock and a preferred stock?
Common stock holders have voting rights while preferred stock holders do not
Preferred stock holders have voting rights while common stock holders do not
Common stock holders receive fixed dividends while preferred stock holders do not
Preferred stock holders receive fixed dividends while common stock holders do not
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