Summer 2023 FINC330 The Final Thursday, July 27,2023 Name: Tresure Andrew L. Choose the best answer (each 2 points). 1. Intrinsic Value: An estimate of a stock's "true" value based on return daa, risk and a) Estimated b) Acourate c) Average 2. deals with the best way to striacture portiolios, or "buskets", of stocks and bonds. Rational invetors want to bold diversified poetfolios in oeder to limit risiks. a) Portfolio Theory b) Market Analyais c) Security Analysis 3. The company selis its stocks oe bends to the investment bank, which then sells rane securibes to bank. This process is called a) Hedging b) Underwriting c) Swaption 4. Organixations that pool investor funds to purchase financial irstruments and thus reduce taks through diversification. These financial institutions are funds. a) ETFo b) Mutual c) Fixed Inoume 5. The company sells it stocks or bonds to the inventanent bank, which then sells same securties to savers. The busineses' securites and the savers money merely "pass through" the investment bank, This procena is called a) Hedging b) Underwriting c) Swaption 6. For example, a farmer may enter into a futures contract in which he agrees today to sell 3,000 bushels of soybeans 6 months from now at a price of $9.75 a buskel. This fircancial transaction takes place in the markets. a) Secondary b) Primary c) Futures 7. If Jane Doe decided to buy 1,000 shares of GE stock, the purchase would occur in the market. a) Futures b) Secondary c) Primary