9. Which of the following securities will NOT be traded at money market?

A. Bills;

B. Certificates of deposit;

C. Repurchase agreements;

D. Long-term corporate bonds;

10. Which of the following are sources of non-diversifiable risk?

A. Inflation Rate;

B. Interest Rate;

C. Economic Cycles;

D. All of the above;

11. Which of the following sentences are correct?

A. Non-diversifiable risk is risk that is specific to a particular security;

B. We cannot decrease firms specific risks by constructing an optimal portfolio of assets;

C. Management style is one of the examples of diversifiable risks;

D. All of the above are correct.

12. The systematic risk of a projects return is the result of uncertainties in the return caused by:

A. Nationwide economic factors;

B. Factors unique to the firm undertaking the project;

C. Factors unique to the industry to which the project belongs;

D. Factors unique to the project.

13. If the market has a strong-form efficiency, it means that:

A. Stock prices already reflect all information that can be derived by examining market trading data such as the history of past trading;

B. Technical (trend) analysis is fruitless;

C. Past stock price data are publicly available and virtually costless to obtain.

D. All of the above

14. Risk aversion is:

A. The degree to which investors ready to accept the risk;

B. Square root of variance;

C. The excess of return received for higher risk;

D. The process of allocating capital in a way that reduces the exposure to any one particular asset or risk.

15. Which of the following sentences are correct?

A. Higher correlation coefficient - weaker the risk reduction;

B. Lower correlation coefficient - weaker the risk reduction;

C. Higher correlation coefficient - better the risk reduction;

D. All of the above