11. During the semester a large corporation in the S&P 500 Index announced a stock split. One objective of the stock split was to become eligible for inclusion in which of the following indexes?

a. All of the above

b. DJI

c. SPW

d. None of the above

e. SPW

12. Which of the following Indexes is Price-Weighted?

a. DJI

b. SPX

c. SPW

d. All of the above

e. None of the above

13. True or False: If you invest in long term US Treasury Notes, you will never have a 3-month period of negative returns.

a. True

b. False

14. Using which TWO (2) of the following investing strategies would be INCONSISTENT with a belief in the "Semi-Strong-Form" of the "Efficient Market Hypothesis"?

a. None of these answers would be inconsistent

b. Trading using insider information

c. Fundamental Analysis

d. A Top-Down Approach

e. Technical Analysis

f. All of these answers would be inconsistent

15. Assume you own a 2-year US Treasury Note with a 5% coupon and a 7-year US Treasury Note with a 0% coupon. If market interest rates decrease by 100 basis points in the 2-year maturity and declined by only 75 basis points in the 7-year maturity, which bond would experience the smallest market value change?

a. 5% US Treasury due in 2 years

b. 0% US Treasury due in 7 years

c. Both would change by the same amount

d. Prices would not change since the coupons are fixed

16. Both Apple (AAPL) and Goldman Sachs (GS) are part of the S&P 500 and DJIA Indexes. Apple's stock price and market cap are ~$137.59 and $2.2 Trillion, respectively. Goldman Sach's share price and market cap are ~$306.80 and ~$105 Billion, respectively. Which stock has the greatest influence on the value of the S&P 500 (SPX) Index?

a. AAPL

b. GS

c. Both have the same influence

d. Not enough information provided

17. Earlier this year, you purchased $5,000 worth of an Spartan Power common stock. At the same time, your sister purchased $5,000 of Spartan Power's senior debt with a 5% coupon at par. At the time of purchase, he bond was rated AAA. Last week the company announced it invented a new battery that would likely go into every new electric car manufactured over the next 10 years. Which investment has the greatest chance of earning a large return based on the new invention?

a. Your common stock investment

b. Your sister's Bond Investment

c. Both have equal probability of receiving the same amount

18. Using which one (1) of the following investing strategies would be INCONSISTENT with a belief In the "Weak Form" of the "Efficient Market Hypothesis"?

a. Trad using Insider information.

b. Technical Analysis

c. All of these answers would be inconsistent inconsistent

d. None of these answers would

e. Fundamental Analysis

f. A Bottom-Up Approach

19. Rank the following based on their potential loss severity for the investor in the event of bankruptcy (worst (largest) loss to best (smallest) potential loss):

a. Preferred

b. Common Equity

c. Subordinate Debt

d. Senior Debt

20. During 2022, which of the following has had the smallest negative impact on equity returns?

a. Inflation

b. The Russian Invasion of Ukraine

c. US Tax Policy

d. COVID/Supply Chain Issues