Question 16 Not yet answered Marked out of 150 Flag question Immunization of coupon paying bonds is not a passive investment strategy because 1. the portfolio must be rebalanced every time interest rates change II. the portfolio must be rebalanced over time even if interest rates don't change III. the bond price/rate relation (convexity) implies duration based immunization strategies don't work Select one: O a. I, II and III O b. Il only O c. I only O d. I and II only Question 17 Not yet answered Marked out of 150 p Flag question Which of the following securities has an ownership stake in a corporation? Select one O a Common shares O b. Corporate bonds OC. Unsecured notes O d. Fixed-income securities O e. Corporate bonds Question 18 Not yet answered Marked out of 150 Flag question Which of the following securities gives its holder the right, but not the obligation, to buy securities at a stated price within a certain time period? Select one O a Futures contract O b. Call option OC. A CD Od. Interest rate swap e. Put option Question 19 Not yet answered Marked out of 1.50 p Flag question What is the biggest difference between an option and a futures contract? Select one: a. Options contracts are contractual agreements whereas futures contracts are not. O b. Options are traded on exchanges while futures are not. oc. Options can be used by speculators to profit from price fluctuations while futures cannot. O d. Options give investors a way to manage portfolio risk while futures do not. O e. Options give the right to buy or sell while a futures contract is an obligation and commitment to buy or sell. Question 20 Not yet answered Marked out of 150 p Flag question Which of the following statements regarding money market securities is NOT correct? Select one a. Most money market securities' rates are very close to others of the same maturity O b. They tend to have a low probability of default. OC. Money market securities are debt securities. d. The face value of most money market securities is $1,000 or larger. O e. They tend to be highly liquid. Question 21 Not yet answered Marked out of 150 p Flag question Investors interested in predictable cash flow from their investments should consider managed funds that offer: Select one a. automatic investment plans. O b. conversion privileges. O c. automatic reinvestment plans. O d. systematic withdrawal plans. Question 22 Not yet answered Marked out of 1.50 p Fleg question Hedge funds often employ investing strategies such as: I. short selling II. margin trading. III. option trading IV. hedging. Select one: O a. I, II and IV only O b. II and III only O c. I, II, III and IV od. I and III only Question 23 Not yet answered Marked out of 150 p Flag question One of the key differences between actively managed funds and passively managed funds is higher management fees, due to the fact: Select one a active managers go to the gym, play golf and entertain clients more. O b. Managing and operating an exchange traded fund involves a large team of research and investment analysts. c. By trying to outperform the market, an actively managed investment company has higher expense ratios. d. Some fund managers are better at marketing and are able to sell the same product with higher fees to some clients. Question 24 Not yet answered Marked out of 1.50 p Flag question Which of the following characteristics apply to exchange-traded funds (ETFs)? 1. Unlimited number of outstanding shares. II. Typically track the performance of some index, III. Market prices reflect demand for the fund rather than NAV. IV. Shares are purchased from and redeemed by the investment company managing the fund. Select one O a. II and III only b. I and II only c. I, II and IV only O d. I, II and Ill only Question 25 Not yet answered Marked out of 150 P Flag question What should be the beta of a 30-day Treasury bill (T-bill)? Select one a. 1.00 O b. 0.50 O c. 0.00 O d. 1.50 e. -1.00 Question 26 Not yet answered Marked out of 150 p Flag question In financial economic theory, an indifference curve shows: Select one: O a the one most desirable portfolio for a particular investor. O b. all combinations of portfolios that are equally efficient to all investors. O c. the one most desirable market portfolio for all investors. O d. all combinations of risk and expected return that are equally desirable to a particular investor. Question 27 Not yet answered Marked out of 1.50 p Flag question If the return for a security lies below the security market line, then: Select one: O a. the security is considered undervalued O b. its price should rise so its return lies on the security market line O c. the security price is in equilibrium with the market O d. its price should fall and so return rise Question 28 Not yet answered Marked out of 1.50 p Flag question Where will a security plot in relation to the security market line (SML) if it has a beta of 1.1 and is overvalued? Select one O a. to the left of the overall market and below the SML O b. to the right of the overall market and above the SML c. to the right of the overall market and below the SML O d. to the left of the overall market and above the SML Question 29 Not yet answered Marked out of 1.50 Flag question The term "demographics" means; Select one: a. changes in economic characteristics such as expected wages growth O b. changes in the physical location of activities such as retail areas or industrial parks O c. characteristics that describe a population's mental states, such as lifestyle or source of happiness O d. changes in population characteristics such as household size, or population growth rate Question 30 Not yet answered Marked out of 150 Flag question If a property was purchased for $120,000, using 80% p.a. debt finance at 4% interest p.a., its net income per annum was $8,000, and the property price rose by 5%, then the total equity return for one year was: Select one O a. 58.3% O b. 8.5% O c. 11.7% Od. 68.3% Question 31 Not yet answered Marked out of 1.50 p Flag question An example of a 'strategic decision in property investment is: Select one a. the method of controlling expenses O b. which type of tenant to choose O c. which property sector to invest in d. what maintenance is required with the next six months Question 32 Not yet answered Marked out of 1.50 P Flag question The capital gain on an investment property which has been sold is: Select one: a, the sale price as a percentage of the purchase price ob. the sale price minus the purchase price minus debt minus all expenses c. the revenue a property generates minus all the expenses incurred in maintaining the property O d. the sale price of the property as a percentage of investor's initial equity Question 33 Not yet answered Marked out of 200 p Flag question Tarr Inc. has the following financial results for 2017: Sales = $4039830 EBIT = $107443 Average Total Assets = $932311 Net Profit before tax = $74834 Tax = $11321 What is Tarr Inc. ROA? Use 2 decimal places. Do not type %