21. Earlier this year, you purchased $5,000 worth of an Badger Biolabs preferred stock. At the same time, your sister purchased $5,000 of Badger Biolabs' senior debt with a 5% coupon at par. The stock was rated single B. Last week the company filed for bankruptcy. Which investment has a better chance of returning at least some of capital?

a. Your preferred stock investment

b. Both have equal probability receiving the same amount

c. Your ster's Bond Investment

22. The maximum gain of a short put position is

a. $1,000

b. Zero

c. equal to the premium received.

d. unlimited.

23. Which TWO (2) options below are NOT common names used to describe as a "Factor" or a "Style" that is used for equity investing?

a. Growth

b. Momentum

c. Consistency

d. Quality

e. Size

f. Complexity

g. Value

24. 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 Dow Jones Industrials (DJI) Index?

a. Both have the same influence

b. Not enough information provided

c. GS

d. AAPL

25. Portfolio constraints would include

a. evaluation criteria

b. liquidity needs

c. portfolio goal

d. return objective

e. monitoring guidelines

26. Overnight, Tiger Technology reported a loss of 10 cents per share. Tiger's loss was not as bad as most analysts expected. In fact, the stock's price fell by 30% yesterday because of one analyst said the company would lose at least 50 cents a share. Assuming the market is stable today and no other news is released, what performance would you expect for Tiger Tech's stock today?

a. Good (price should increase and reverse at least some of yesterday's decline)

b. Bad (price should decline move)

27. If you take a long position in a stock, you will profit if

a. the stock price stays the same.

b. the stock price increases.

c. the stock price falls.

28. If you short a stock, you will profit if

a. the stock price increases.

b. the stock price stays the same.

c. the stock price falls.

29. This is a true story that happened this month (May 2022). Harley-Davidson is suspending manufacturing for two weeks and has shut down operations in Wisconsin and York, Pennsylvania due to a supplier problem. According to a company press release, the decision was made "out of an abundance of caution, is based on information provided by a third-party supplier to Harley Davidson late on Tuesday concerning a regulatory compliance matter relating to the supplier's component part." This is an example of

a. supplier loop reversal risk

b. Idiosyncratic firm-specific risk

c. consumer acceptance risk

d. systematic market risk

30. An investor's risk tolerance is a combination of two of the following:

a. Willingness to take risk

b. liquidity to take risk

c. Ability to take risk

d. exemption to take risk