1.) Which of the following portfolios will have the highest beta?

a.)Portfolio of U.S. Treasury bills

b.)Portfolio of U.S. government bonds

c.)Portfolio containing 50% U.S. Treasury bills and 50% U.S. government bonds

d.)Portfolio of U.S. common stocks

2.) The correlation coefficient measures the:

a.)rate of return of individual stocks.

b.)direction of movement of the return of individual stocks.

c.)degree to which the returns of two stocks move together.

d.)degree of s unique risk present in the standard deviations of a pair of stocks.

3.) Which of the following is included in the Fama-French Three-Factor Model?

I) market factor;

II) liquidity factor;

III) book-to-market factor;

IV) size factor

a.)I and II only

b.)I, II, and IV

c.)I, II, and III

d.)I, III, and IV

4.) Investors who purchased shares from the Facebook IPO did so in which market?

a.)primary market

b.)secondary market

c.)over-the-counter market

d.)NYSE

5.) Which of the following are NOT financial intermediaries?

a.)insurance companies

b.)mutual funds

c.)banking regulators

d.)venture capital funds