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Which of the following is(are) correct? In a closed-end mutual fund the fund manager will create new units for the new investors. Mutual funds with
- Which of the following is(are) correct?
- In a closed-end mutual fund the fund manager will create new units for the new investors.
- Mutual funds with active portfolio management usually charges a higher management fee than mutual funds with passive portfolio management.
- I only
- II only
- Both I and II
- Neither I nor II
- Which of the following is(are) correct?
- It is possible for a Hong Kong investor to invest in the Japan stock market through mutual funds.
- The cost of investing in mutual funds is usually lower than investing directly in stocks.
- I only
- II only
- Both I and II
- Neither I nor II
- When an investor short sells a stock, _______________.
- he most likely thinks the stock price will rise
- he can only set the sell price a one tick below the last executed price
- I only
- II only
- Both I and II
- Neither I nor II
- When an investor places a market buy order, ____________________.
- it is possible that only part of his order will be filled
- his buy price may get higher and higher
- I only
- II only
- Both I and II
- Neither I nor II
Use the following information for the next 2 questions.
Stock | Price per share | Number of free-float shares (million) | |
| Day 1 | Day 2 |
|
A | $4.23 | $4.76 | 83 |
B | $4.66 | $5.71 | 48 |
C | $8.84 | $8.98 | 22 |
- Suppose the index level on day 1 is 10,000. Calculate the index level on day 2 using price-weighted method.
- 9,116
- 9,645
- 10,970
- 12,338
- Suppose the index level on day 1 is 10,000. Calculate the index level on day 2 using free-float-weighted method.
- 8,875
- 9,473
- 10,483
- 11,267
- Which of the following is(are) correct?
- Stock indexes using price-weighted method can better reflect in the change of the market values of the companies in the indexes than free-float-weighted method.
- The stock markets in most developed countries use price-weighted method.
- I only
- II only
- Both I and II
- Neither I nor II
- Which of the following is(are) correct?
- Most bonds are traded over-the-counter.
- All else the same, the yield to maturity of a bond with credit rating of BBB will be lower than a bond with AA rating.
- I only
- II only
- Both I and II
- Neither I nor II
- Which of the following is(are) correct?
- The cash flows to be received by the investors from debt instruments are more certain than the cash flows to be received from equity instruments.
- Most debt instruments do not have maturity dates and most equity instruments have maturity dates.
- I only
- II only
- Both I and II
- Neither I nor II
- Which of the party that is responsible for keeping the record of the shares sold in an initial public offering (IPO)?
- Dealer
- Sponsor
- Underwriter
- Bookrunner
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