1.Which of these are attached to higher probability of occurrence: 5% VaR or 10% VaR?

A. Depends on the probability distribution of the returns

B. Need more information to answer

C. 5%

D. 10%

2.

You bought a stock at $20 at the beginning of the year for an investment. The value of the investment grows 10% and you earn a dividend of $1.50. Your Holding Period Return (HPR) was ________.

A. 15.5%

B. 17.5%

C. 19.3%

D. 14%

3.Increase in the number of buying on margin and short sales is signaling expectation of ________ and ________ markets respectively.

A. bull, bear

B. bull, bull

C. bear, bull

D. bear, bear

4.If you cannot sell an asset quickly in the market, you are dealing with .

A. business risk.

B. liquidity risk.

C. financial risk.

D. market risk.

E. exchange rate risk.