1. Identify which of the following are companys stakeholders: A. Employees; B. Shareholders; C. Creditors; D. All of the above;

2. Which of the following crisis events are Currency Crisis:

A. Credit Crunch in 2007;

B. Crisis in Latin America in 1989;

C. Crisis in less developed countries in 1982;

D. None of the above;

3. An European call option on a companys share gives the holder the right, at a fixed price, to

A. To buy the companys share within a given period of time;

B. To buy the companys share on a specific date only;

C. To sell the companys share within a given period of time;

D. To sell the companys share on a specific date only.

4. The additional return that investor will get by investing in risky assets is called:

A. Risk aversion;

B. Risk premium;

C. Profit margin;

D. None of the above.

5. The holder of which securities have no particular right to dividend, but are entitled to all the profit "after prior demand":

A. Preferred Shares;

B. Government bonds;

C. Corporate bonds;

D. Ordinary Shares;

6. The covariance between the return on the market index and the return on the security divided by the variance of the return on the market index is called:

A. Beta coefficient;

B. Risk premium;

C. Standard Deviation;

D. Volatility.

7. Which of the following describes standard deviation:

A. The variance of the return on the security divided by the variance of the return on the market index;

B. The square root of the sum of squared deviations from the mean, multiplied by probability

C. The covariance between the return on the market index and the return on the security divided by the variance of the return on the market index.

D. None of the above.

8. Which of the following assets derive their value from the underlying asset with which they are associated?

A. Preferred shares;

B. Government Bonds;

C. Commodities;

D. Options.