1) Which of the following indexes are true about algorithm and high frequency trading? I. The trader can function as a dealer in the market II. They do not need to compete for the location because they trade online III. they can trade small number of shares in one transaction, but they have large number of trades 1) A) I and II only B) I and III only C) II and III only D) I, II, and III 2) Which of the following is not true about investment companies. 2) A) Close-end fund price can deviate from its NAV B) Open-end fund have intra-day information disadvantage C) Most ETFs have lower management fees than active mutual funds D) Hedge fund usually invest in more liquid assets while mutual funds invest in more illiquid assets 3) Which of the following is true about the fund fees 3). A) Font-end load is higher for mutual funds that do not engage in their own advertisement B) There are no funds with expense ratios 0% C) Back-end load is lower for longer term investors, but the expense ratio for longer term investors is higher D) Long term investor would prefer the funds with low front-end load but high 126-1 charge to the funds with high front-end load but low 126-1 charge 4) Which of the following is true about IPO? A) Investment banks form underwriter syndicate. B) Road show is not necessary. C) Book buildings are only open to private equities. D) IPO bid winner will pay higher price than the true value of the stock (winner's curse). 5) Which of the following is (are) true about dark pools? I. They allow anonymity in trading. II. The transaction cost for these trading is high because it is difficult to find counterparty traders. III. Trades made through them might not be reported. 5). A) I and III only B) I, II, and III C) I and II only D) II and III only