1) Which of the following is a function of investment banks? A) Underwrite stocks and bonds in the primary market B) Collect deposits and extend loans C) Intermediate between sellers and buyers of stocks without using their own balance sheets D) All of the above 2) If you believe that a price of Google stock will fall sharply, what kind of trading strategy should you adopt? A) Place a market buy order for Google stock. B) Place a limit buy order for Google stock. C) Buy on margin for Google stock. D) Make a short sale for Google stock. 3) A stock split is a corporate action in which a company divides its share into multiple shares. What is a likely impact of this action? A) The company's share will become less attractive to individual investors. B) Big shareholders will get more control power of the company. C) Price per share will fall. D) The company's net income per share will increase. 4) Holding other things constant, a stock's value will be highest if the investor's required rate of return in equity is A) 20% B) 15% C) 10% D) 5%