Economic Value Added (EVA) is calculated as:

Select one:

a. the percentage growth in a company's book value per year

b. the difference in value between what goods a company buys and what it sells

c. the ratio of cash and receivables to short-term debt

d. the difference between profits after tax and a company's true cost of capital for both debt and equity

e. the net profit of a company after taxes and payments on bonds are made.

Indirect investing refers to:

Select one:

a. Buying and selling of the shares of investment funds

b. Buying and selling of derivatives

c. Buying and selling of futures contracts

d. Buying and selling of bank shares

e. Buying and selling of calls and puts

An investor with a large amount of funds to invest in a long-term, relatively low risk, company-issued security would likely buy:

Select one:

a. Commercial paper

b. Treasury bill

c. Certificate of deposit

d. Corporate bond

e. A subordinated debenture

An investor who believes in "sector rotation" would do which of the following?

I. Spend time trying to find under-priced shares

II. Spend time trying to find the correct time to enter and leave the market

III. Concentrate on reducing tax and transaction costs of their diversified portfolio

IV. Attempt to change between sectors at the correct time

V. Try to find patterns in price data which indicate future price movements

Select one:

a. III only

b. I, III & V

c. IV only

d. II & V

e. I, II, III, IV & V