AGEC 330 EXAM
Questions and Answers
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[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
,1|Page
A primary market is a market where investors purchase securities or assets from
other investors, rather than from issuing companies themselves - ANSWER: F
Portfolio risk cannot be reduced with a mix of securities and by investing in stocks
with different characteristics - ANSWER: F
Portfolio risk can be reduced with a mix of securities and by investing in stocks
with different characteristics - ANSWER: T
People use money to invest in real and financial goods only - ANSWER: F
The primary market is facilitated by - ANSWER: investment banking
,7|Page
Efficient markets mean that stock prices have adjusted for all information available
and there are no sure bargains - ANSWER: T
One of the key components of financial investing is that there is no expected high
return without bearing high risk - ANSWER: T
The secondary market is the part of the capital market that deals with issuing of
new securities - ANSWER: F
The primary market is the part of the capital market that deals with issuing of new
securities - ANSWER: T
Securities can give title to - ANSWER: real assets and treasury bond
Securities give you the title to underlying real assets only - ANSWER: F
Stock investors are in a residual in regards to claims on income assets -
ANSWER: T
Financial investments can be made by investing money in - ANSWER: real goods
and financial goods
Bond holders are in a residual position in regards to claims on income and assets. -
ANSWER: F
Risk and return characteristics of an individual portfolio depend on the individuals
risk/return preference - ANSWER: T
, 8|Page
Mutual funds are a pool of funds from investors. These funds are invested in a
portfolio of securities - ANSWER: T
The future value of $100 deposited today for 10 years at 10% compounded
annually is $38.55 - ANSWER: F
Net present value is compensation for foregone investments or consumption -
ANSWER: F
Suppose you can put your money in a savings account that pays 4%. compounded
annually. How much money would you have in your savings account in 35 years if
you invested $1500 today? - ANSWER: $5,919
FV=1500(1.04)^35
As a graduate at 29 from Texas A&M, you will receive a signing bonus of $12000
to go to work for a large investment company. If you save the money until you
retire at 65 what would the value be at the time assuming a 12% rate of return? -
ANSWER: $709,627
FV=12000(1.12)^36
The process of finding PV from future payments is often referred to as
. It is the opposite of the process used to determine
future values. - ANSWER: discounting, compounding
The conversion period is the period of time that the principal accrues interest
before interest is added to principal - ANSWER: T
Questions and Answers
Graded A+ LATEST
UPDATE 2025 TOP
RATED A+
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
,1|Page
A primary market is a market where investors purchase securities or assets from
other investors, rather than from issuing companies themselves - ANSWER: F
Portfolio risk cannot be reduced with a mix of securities and by investing in stocks
with different characteristics - ANSWER: F
Portfolio risk can be reduced with a mix of securities and by investing in stocks
with different characteristics - ANSWER: T
People use money to invest in real and financial goods only - ANSWER: F
The primary market is facilitated by - ANSWER: investment banking
,7|Page
Efficient markets mean that stock prices have adjusted for all information available
and there are no sure bargains - ANSWER: T
One of the key components of financial investing is that there is no expected high
return without bearing high risk - ANSWER: T
The secondary market is the part of the capital market that deals with issuing of
new securities - ANSWER: F
The primary market is the part of the capital market that deals with issuing of new
securities - ANSWER: T
Securities can give title to - ANSWER: real assets and treasury bond
Securities give you the title to underlying real assets only - ANSWER: F
Stock investors are in a residual in regards to claims on income assets -
ANSWER: T
Financial investments can be made by investing money in - ANSWER: real goods
and financial goods
Bond holders are in a residual position in regards to claims on income and assets. -
ANSWER: F
Risk and return characteristics of an individual portfolio depend on the individuals
risk/return preference - ANSWER: T
, 8|Page
Mutual funds are a pool of funds from investors. These funds are invested in a
portfolio of securities - ANSWER: T
The future value of $100 deposited today for 10 years at 10% compounded
annually is $38.55 - ANSWER: F
Net present value is compensation for foregone investments or consumption -
ANSWER: F
Suppose you can put your money in a savings account that pays 4%. compounded
annually. How much money would you have in your savings account in 35 years if
you invested $1500 today? - ANSWER: $5,919
FV=1500(1.04)^35
As a graduate at 29 from Texas A&M, you will receive a signing bonus of $12000
to go to work for a large investment company. If you save the money until you
retire at 65 what would the value be at the time assuming a 12% rate of return? -
ANSWER: $709,627
FV=12000(1.12)^36
The process of finding PV from future payments is often referred to as
. It is the opposite of the process used to determine
future values. - ANSWER: discounting, compounding
The conversion period is the period of time that the principal accrues interest
before interest is added to principal - ANSWER: T
