# Section 1 Quiz: Pass the 65

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1. The correlation between ORCL and MSFT is -.5.  When ORCL declines 10%, MSFT is expected to

A) decline 10%
B) increase 5%
C) increase 2%
D) decline 5%
B) increase 5%
(this multiple choice question has been scrambled)
2. A fixed-income client purchases a GE 6s debenture at 93.50. At the end of one year, the bonds are trading at 90.  Therefore, the total annualized return is

A) -3.9%
B) -3.7%
C) 2.7%
D) 2.8%
C) 2.7%
(this multiple choice question has been scrambled)
3. Which of the following investments has the greatest future value:  investment A compounds at 5% for 5 years, investment B compounds at 4% for 6 years, or investment C), which compounds t 6% for 4 years?

A) investment D
B) investment C
C) investment A
D) investment B
C) investment A
(this multiple choice question has been scrambled)
4. A client needs to have \$155,000 available for her daughter's education in 5 years.  Given her time horizon and risk tolerance, you determine that the best investment for her will compound at 4.5%.  Therefore, the present value of the investment is

A) \$193,158
B) \$100,000
C) \$124,380
D) \$148,025
C) \$124,380
(this multiple choice question has been scrambled)
5. Which of the following best represents expected return?

A) returns in excess of 3-month T-bills
C) possible return weighted by profitability
D) future value divided by present value
C) possible return weighted by profitability
(this multiple choice question has been scrambled)
6. All of the following represent risk measurement except

A) Sharpe ratio
B) beta
C) standard deviation
D) time value of money
D) time value of money
(this multiple choice question has been scrambled)
7. A client is considering a State of Kentucky General Obligation bond, with a nominal yield of 5%, and a yield to maturity of 6%.  The client, who is in a 25% marginal tax bracket, would find that a corporate bond yielding which of the following would be equivalent?

A) 8.0%
B) 4.5%
C) 6.7%
D) 3.8%
A) 8.0%
(this multiple choice question has been scrambled)
8. If a portfolio manager is compensated with a performance bonus for managing a small-cap portfolio, which of the following would provide an appropriate benchmark?

A) Dow Jones Industrial Average
B) Russell 2000
C) S&P 500
D) NASDAQ 100
B) Russell 2000
(this multiple choice question has been scrambled)
9. A company considering investing in capital equipment would most likely be concerned with

A) future value
B) net present value
C) CPI
D) CAPM
B) net present value
(this multiple choice question has been scrambled)
10. Which of the following investments has the highest duration?

A) 10-year debenture
B) 5-year Treasury note
C) 12-year debenture
D) 12-year STRIP
D) 12-year STRIP
(this multiple choice question has been scrambled)
11. QMI reported net profits of \$1 million, \$1.5 million, and \$2.25 million the past three years.  If this rate of growth in profits continues for three more years, QMI's net profits will be which of the following?

A) \$14.25 million
B) \$4 million
C) \$3 million
D) \$7.6 million
D) \$7.6 million
(this multiple choice question has been scrambled)
12. Which of the following are determined by examining a corporation's balance sheet?

1) EPS
2) net income
3) quick ratio
4) shareholders' equity

A) 2,3
B) 1,2
C) 3,4
D) 1,2,3,4
C) 3,4
(this multiple choice question has been scrambled)
13. The 200-day moving average is considered important by technical analyst because

A) it is primarily a tool of fundamental analysis
B) its predictive ability is confirmed conclusively by many academic studies
C) it is adjusted for taxes and inflation
D) it aids in spotting trends
D) it aids in spotting trends
(this multiple choice question has been scrambled)
14. Rockford Tool and Die, Inc. lists the following on its income statement:

--Revenue - \$2,000,000
--COGS - \$500,000
--Depreciation - \$400,000

Therefore, the gross margin is

A) 55%
B) 45%
C) 25%
D) 75%
D) 75%
(this multiple choice question has been scrambled)
15. If a technical analyst wanted to sell a stock short below support, he/she would most likely enter which of the following orders?

A) sell-limit
B) sell-stop-limit
B) sell-stop-limit
(this multiple choice question has been scrambled)
16. Which of the following items are found on a corporation's income statement?

A) all choices listed
B) cost of goods sold
C) retained earnings
D) cash and equivalents
B) cost of goods sold
(this multiple choice question has been scrambled)
17. Which of the following represents the most stringent measure of a corporation's financial condition?

A) cash-to-current assets
B) cash-to-total liabilities
C) current ratio
D) quick ratio
B) cash-to-total liabilities
(this multiple choice question has been scrambled)
18. Current ratio is best expressed as

A) long-term assets minus long-term liabilities
B) leverage minus fiscal reserve ratio
C) current liabilities divided into current assets
D) current assets divided by long-term liabilities
C) current liabilities divided into current assets
(this multiple choice question has been scrambled)
19. Which of the following would be expected to benefit if the American dollar were to weaken against the yen?

A) a currentAmerican trade deficit with Japan
B) both choices listed
C) American investor holding the Toyata Motors ADR
D) neither choice listed
B) both choices listed
(this multiple choice question has been scrambled)

## Card Set Information

 Author: mrinout ID: 196652 Filename: Section 1 Quiz: Pass the 65 Updated: 2013-01-30 19:44:43 Tags: Pass 65 Folders: Description: 19 Questions Show Answers:

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