1. Margin trading is a form of trading whereby:
   1. Investors take a loan from a bank and use it to buy stocks
   2. Investors use their own securities as collateral and can use 100% of the value to borrow
   3. Investors take a loan from the brokerage company at a stated interest rate
   4. Investors use their own securities as collateral and can only use the proceeds to invest; The amount borrowed depends upon the margin requirement

2. The type of order that require the order to be immediately filled is a:
   1. Good Till Cancelled Order
   2. Day Order
   3. Fill or Kill Order
   4. All or None Order

3. A stock has a beta of -1.5. The S&P 500 increases by 5%. Which of the following apply
   1. The increase in the stock price is expected to be 7.5%
   2. The increase in the stock is expected to be 10%
   3. The decrease in the stock price is expected to be 7.5%
   4. The decrease in the stock price is expected to be 10%

4. The correlation coefficient:
   1. Can vary in range from +1 to -1
   2. A value of -1 indicates a perfect positive correlation
   3. A value of +1 indicates a perfect positive correlation
   4. Both a and b
   5. Both a and c

5. The most important variable one must consider when managing a clients financial assets is:
   1. Duration of the account
   2. Investments
   3. Risk Tolerance
   4. Interest Rates

6. Your client makes $400,000 per annum and is in a 40% tax bracket. The investor will take on some risk in their portfolio. The best type of income/gains from investments for this client would be:
   1. CD deposit
   2. Bonds which are triple A rated
   3. Hedge fund investments
   4. Stocks which you think will appreciate

7. Preferred shareholders have an advantage in that:
   1. They can vote by proxy
   2. They have priority voting rights to common stock holders
   3. They have the ability to receive dividends before common stock holders
   4. Have more weight in voting on corporate matters than common stock holders

8. A fundamental of diversification includes:
   1. Amongst asset categories and across indices
   2. Within asset categories and across indices
   3. Amongst asset categories and within asset categories
   4. Amongst asset categories and for different durations