FINA 3315 EXAM 1 COMPREHENSIVE STUDY
GUIDE 2026
◉ McDonald's stock is now selling for $92 per share. Kim wants to
buy 100 shares but only if she can do so at $90 or less. She should
place a(n).
Answer: D. limit order
◉ The expected rate of return and standard deviations, respectively
for four stocks are given below:
OPQ 11%, 8%
RST 11%, 9%
UVW 12%, 10%
XYZ 12%, 8%
Which stock is clearly most desirable.
Answer: . C. XYZ
◉ The governmental agency that oversees the capital markets is the.
Answer: A. Securities and Exchange Commission.
◉ The holding period return (HPR) can appropriately be used to.
,Answer: C. compare returns among investments that are held for the
same period of time.
◉ Liquidity risk is defined as the risk of.
Answer: D. not being able to sell an investment conveniently and at a
reasonable price
◉ The Dow Jones Industrial Average (DJIA) consists of 30 stocks
whose price behavior.
Answer: C. broadly reflects the overall price behavior of the stock
market.
◉ When the stock market has bottomed out and is beginning to
recover, the best portfolio to own is the one with a beta of.
Answer: A. +2.0.
◉ Debt represents funds loaned in exchange for.
Answer: A. interest income and the repayment of the loan principal.
◉ Stocks purchased in the secondary market are purchased.
Answer: D. from other investors.
, ◉ An informal, voluntary agreement to solve disputes between an
investor and his/her broker by utilizing a person to facilitate
negotiations between the two parties is called.
Answer: C. mediation.
◉ A measure of systematic risk is.
Answer: D. beta.
◉ The required rate of return on the Cosmos Corporation's common
stock is 10%, the current real rate of return in the market is 1%, and
the inflation rate is 3%. In this case, the risk premium associated
with Cosmos stock is.
Answer: A. 6%.
◉ Which one of the following statements concerning the primary
market is correct?.
Answer: C. The first public sale of a company's stock is called an IPO.
◉ Investors seeking a diversified, professionally managed portfolio
of securities can purchase shares of.
Answer: C. mutual funds.
◉ Correlation is a measure of the relationship between two series of
numbers.
GUIDE 2026
◉ McDonald's stock is now selling for $92 per share. Kim wants to
buy 100 shares but only if she can do so at $90 or less. She should
place a(n).
Answer: D. limit order
◉ The expected rate of return and standard deviations, respectively
for four stocks are given below:
OPQ 11%, 8%
RST 11%, 9%
UVW 12%, 10%
XYZ 12%, 8%
Which stock is clearly most desirable.
Answer: . C. XYZ
◉ The governmental agency that oversees the capital markets is the.
Answer: A. Securities and Exchange Commission.
◉ The holding period return (HPR) can appropriately be used to.
,Answer: C. compare returns among investments that are held for the
same period of time.
◉ Liquidity risk is defined as the risk of.
Answer: D. not being able to sell an investment conveniently and at a
reasonable price
◉ The Dow Jones Industrial Average (DJIA) consists of 30 stocks
whose price behavior.
Answer: C. broadly reflects the overall price behavior of the stock
market.
◉ When the stock market has bottomed out and is beginning to
recover, the best portfolio to own is the one with a beta of.
Answer: A. +2.0.
◉ Debt represents funds loaned in exchange for.
Answer: A. interest income and the repayment of the loan principal.
◉ Stocks purchased in the secondary market are purchased.
Answer: D. from other investors.
, ◉ An informal, voluntary agreement to solve disputes between an
investor and his/her broker by utilizing a person to facilitate
negotiations between the two parties is called.
Answer: C. mediation.
◉ A measure of systematic risk is.
Answer: D. beta.
◉ The required rate of return on the Cosmos Corporation's common
stock is 10%, the current real rate of return in the market is 1%, and
the inflation rate is 3%. In this case, the risk premium associated
with Cosmos stock is.
Answer: A. 6%.
◉ Which one of the following statements concerning the primary
market is correct?.
Answer: C. The first public sale of a company's stock is called an IPO.
◉ Investors seeking a diversified, professionally managed portfolio
of securities can purchase shares of.
Answer: C. mutual funds.
◉ Correlation is a measure of the relationship between two series of
numbers.
