QUESTION 16

Which of the following correctly describes a repurchase agreement:

		The sale of a security with a commitment to repurchase the same security at a specified future date and a designated price.
		The sale of a security with a commitment to repurchase the same security at a specified future date left unspecified, at designated price.
		The purchase of a security with a commitment to purchase more of the same security at a specified future date.
		None of the above.

QUESTION 17

To achieve diversification and eliminate non-systematic risk, the correlation coefficient must be ....

		A perfect positive correlation
		+1
		Perfect negative correlation
		Zero

QUESTION 18

Money market securities are also known as_________________.

		Collectibles
		Cash equivalents
		Securitization
		Municipal bonds

QUESTION 19

Which of the following represents the net worth of the US economy?

		financial assets
		real assets
		the sum of financial and real assets
		None of the above

QUESTION 20

The Efficient Market Hypothesis does not believe that stocks follow a randow walk and that they are unpredictable.

True

False