2) In a market economy, funds are allocated based on the size of the economic unit in need of funds 2) and the industry in which it operates.

Waregementet Sion to your account atments.pdf A) B MULTIPLE CHOICE. Choose the one alternative that best completes the statement or newer the question 19) Which of the following is a financial anset? 19) A) equipment B) inventories C) a building D) bonds 20) The purpose of financial markets is to A) lower the yield on bonds 20) 1) control inflation C) Increase the price of common socks D) allocate savings eficiently 21) A 30-year corporate bond issued in 1985 would now trade in the 21) A) secondary capital market B) primary capital market primary money market b) secondary money market 22) Which of the following is not a financial intermediary? 223 A) Chase Manhattan Bank B) Apple Computer Corporation C) Home Federal Savings & Loan D) Pridentialitance Company 23) A security with which of the following Moody's ratings would have the lowestyled other 28) things equal? B) D) Baa 26) An investor is concerned about the ability to sell a security holding it for a short period of 20 time without a major price concession. The investors concerned about A) taxability 3) marketability C) default risk D) maturity 25) An investor is considering investing in only one of the following securities 25) A C Expected Retur 0.10 0.10 0.15 Standard Deviation 0.05 0.06 0.09 Which of the following statement is true A) Security is more desirable than Security Alf the Investor is very rink-avene 1) Security is relatively less risky than Security Securities and care of equal relative tiak D) Securities A and Bare equally desirable if the investors risk-aven 24) For a portfolio, which of the following portfolio measurements weighted average of the 26) measurements for the securities in that some portfolio A) beta BI) standard deviation systematiek D) expected retum 27) A correlation coefficient of -6.7 indicates that the returns from two curities A) tend to move in opposite directions ed to move in the same direction O move Independently of each other D) are perfect mirror image of each other AGON