MBA 622 EXAM QUESTIONS AND ANSWERS
100% CORRECT RATED A+
Passive management - ANSWER Manage portfolio without identifying mis-priced
Active Management - ANSWER attempting to identify mispriced securities or to forecast
broad market trends
primary market - ANSWER market where new issued stocks to be offered to the public
secondary market - ANSWER Market for previously issued stocks are traded among
investors
venture capital - ANSWER money invested to finance a new firm
Private Equity - ANSWER investments in companies that are not traded on a stock
exchange
Money Markets - ANSWER Cash & Bank Notes
Certificate of Deposits
Treasury Bills
Commercial Paper
Certificate of Deposit - ANSWER a certificate issued by a bank to a person depositing
money for a specified length of time.
commercial paper - ANSWER short-term unsecured debt issued by large corporations
, Banker's Acceptance - ANSWER an order to a bank by a customer to pay a sum of
money at a future date
Repurchase Agreements - ANSWER short-term sales of government securities with an
agreement to repurchase the securities at a higher price
Capital Markets - ANSWER Primary: Fixed Income (Bonds) & Equity (Stocks)
Derivative: Options, contracts
Dow Jones Industrial Average - ANSWER a measure based on the prices of the stocks of
30 large companies, widely used as a barometer of the stock market's health. But it is
kind of useless
S&P 500 - ANSWER market index of U.S. equities based on the performance of top 500
large-cap stocks. It use the market value weighted method
Russell 1000 - ANSWER Measures stock of 1,000 biggest companies
Russell 2000 - ANSWER measures the performance of US small firms (small caps)
Russell 3000 - ANSWER has most of the publicly traded in the market
ACWIXUS - ANSWER measure stock price around the world with the exception of U.S
using market weight method
EAFE - ANSWER Europe, Australia, Far East. Measuring developed market outside of
U.S and Canada
Call option - ANSWER the option to buy shares of stock at a specified time in the future
100% CORRECT RATED A+
Passive management - ANSWER Manage portfolio without identifying mis-priced
Active Management - ANSWER attempting to identify mispriced securities or to forecast
broad market trends
primary market - ANSWER market where new issued stocks to be offered to the public
secondary market - ANSWER Market for previously issued stocks are traded among
investors
venture capital - ANSWER money invested to finance a new firm
Private Equity - ANSWER investments in companies that are not traded on a stock
exchange
Money Markets - ANSWER Cash & Bank Notes
Certificate of Deposits
Treasury Bills
Commercial Paper
Certificate of Deposit - ANSWER a certificate issued by a bank to a person depositing
money for a specified length of time.
commercial paper - ANSWER short-term unsecured debt issued by large corporations
, Banker's Acceptance - ANSWER an order to a bank by a customer to pay a sum of
money at a future date
Repurchase Agreements - ANSWER short-term sales of government securities with an
agreement to repurchase the securities at a higher price
Capital Markets - ANSWER Primary: Fixed Income (Bonds) & Equity (Stocks)
Derivative: Options, contracts
Dow Jones Industrial Average - ANSWER a measure based on the prices of the stocks of
30 large companies, widely used as a barometer of the stock market's health. But it is
kind of useless
S&P 500 - ANSWER market index of U.S. equities based on the performance of top 500
large-cap stocks. It use the market value weighted method
Russell 1000 - ANSWER Measures stock of 1,000 biggest companies
Russell 2000 - ANSWER measures the performance of US small firms (small caps)
Russell 3000 - ANSWER has most of the publicly traded in the market
ACWIXUS - ANSWER measure stock price around the world with the exception of U.S
using market weight method
EAFE - ANSWER Europe, Australia, Far East. Measuring developed market outside of
U.S and Canada
Call option - ANSWER the option to buy shares of stock at a specified time in the future
