FI412 Exam 1 Mills Questions with
100% Correct Answers
Four major US asset classes Correct Answer: Common Stock
Bonds
Cash
Real Estate
Alternate asset classes Correct Answer: Commodities
Private Equity
Hedge Funds
Currencies
Systematic Risk Correct Answer: market risk, non-diversifiable
Idiosyncratic Risk Correct Answer: Risk is unique to a specific asset, company, or
industry.
Diversifiable through portfolio diversification.
FOMC meaning Correct Answer: Federal Open Market Committee
FOMC committee members Correct Answer: 12 members, 7 BOG members, 5
Fed presidents, one of whom is always the NY Fed President
Fed's dual mandate Correct Answer: price stability and maximum employment
100% Correct Answers
Four major US asset classes Correct Answer: Common Stock
Bonds
Cash
Real Estate
Alternate asset classes Correct Answer: Commodities
Private Equity
Hedge Funds
Currencies
Systematic Risk Correct Answer: market risk, non-diversifiable
Idiosyncratic Risk Correct Answer: Risk is unique to a specific asset, company, or
industry.
Diversifiable through portfolio diversification.
FOMC meaning Correct Answer: Federal Open Market Committee
FOMC committee members Correct Answer: 12 members, 7 BOG members, 5
Fed presidents, one of whom is always the NY Fed President
Fed's dual mandate Correct Answer: price stability and maximum employment