1. Your uncle has 100,000 SGD to invest in one fund. If he is infinitely risk-averse, which fund does he invest in?

		Return	St. Dev
China		0.21	0.45
Europe		0.12	0.32
United States		0.09	0.17
Treasury Bill		0.01	0
			Hong Kong
			Italy
			United States
			Treasury Bill

1. On January 1, you sold short 200 shares of Walt Disney Co at $150 per share and pledged 50% initial margin. On March 1, a dividend of $10 per share was paid. On June 1, you closed your position buying 200 shares at $170 per share. What is your rate of return?

		-30%.
		-35%.
		-40%.
		-70%
		None of the above

1. An investor's degree of risk aversion will determine his or her ______. [I] Expected returns [II] Capital allocation line [III] Optimal Risky portfolio

		I only
		II only
		I & II
		I & III
		I, II & III

1. Which of the following are TRUE statements regarding buying securities using margin trading? [I] Losses are unlimited. [II] The investor earns any dividend pay-out during the holding period. [III] The investor needs not put up cash upfront.

		I only
		II only
		I and II
		III only
		None of the above

1. Money market securities are characterized by: [I] Short term debt investments [II] High Liquidity [III] Low rates of return

		I only
		I and II only
		I and III only
		II and III only
		I, II and III