FIN 2311 Quiz 1 Questions and Answers | 100% correct | Latest 2026.

FIN 2311 Quiz 1: Questions and Answers | Answered 100% Correct_ Latest 2026. What conclusion can a technical analyst make about the level of a stock price if the analyst identifies a strong demand for the stock while the supply is low? At a resistance level. At a stagnating level. At a downswing level. At a support level. Question 2 (1 point) Saved Jerome is a portfolio manager that uses an industry rotation strategy. Stock prices are currently rising. What type of industry would Jerome select? Cyclical industries. Defensive industries. Emerging industries. Mature industries. Question 3 (1 point) Saved What does the ex-post rate of return measure? Actual historical return. Compound return. Current return less inflation. Expected return. Question 1 (1 point) SavedQuestion 4 (1 point) SavedWhat price pattern indicates a sell signal to a technical analyst? Price breaks through the moving average from above on heavy volume. Price breaks through the moving average from below on heavy volume. Price breaks through the moving average from above on light volume. Price breaks through the moving average from below on light volume. Question 5 (1 point) Saved Company A and Company B are both industrial companies that operate in the same industry and have similar prospects. Company A has a price-earnings Ratio (P/E) of 20, Company B has a P/E of 36, and the industry P/E is 28. Based on these criteria alone, which company offers greater value to investors and why? Company A because it has the lower P/E. Company A or B because P/E is not a measure of market value. Company B because it has the higher P/E. Company B because its P/E is above the industry P/E. Question 6 (1 point) Saved What might force the Bank of Canada to increase short-term interest rates? Rapid increase in long-term bond yields due to increase in inflation expectations. Rapidly appreciating Canadian dollar due to sharp increase in commodity prices. Sudden increase in dividend yield on the S&P/TSX Composite due to increase in dividend payments. Unexpected decline in Canadian GDP due to unexpected decline in Canada's current account deficit.Question 7 (1 point) Saved Koine's trading philosophy is to buy stocks when most people are selling and sell stocks when most people are buying. What type of investor is Koine? Contrarian. Accredited. Institutional. Passive. Question 8 (1 point) Saved What measures of risk can be used to assess a portfolio, 1. Correlation. 2. Beta. 3. Standard deviation. 4. Ex-ante. 2 and 3. 1 and 2. 1 and 3. 3 and 4. Question 9 (1 point) Saved What is the typical term-to-maturity for the high-yield bonds in a fixed income manager's portfolio? Less than 3 years. 3 to 5 years. 5 to 10 years. More than 10 years. Question 10 (1 point) SavedSamar has calculated a price for ABC, using the Dividend Discount Model (DDM), of $28.25. Interest rates rise sharply, and ABC cuts its dividend. What is the effect on the DDM calculation and why? Price will fall Price will remain constant Price will remain constant Price will rise Question 11 (1 point) Saved ABC issues new common shares to help pay down long-term debt. What ratio will be affected immediately? Earnings per share (EPS). Current ratio. Inventory turnover. Net profit margin. Question 12 (1 point) Saved An investor's portfolio currently consists of the common shares of 2 companies: ABC Bank and XYZ Gold. Which type of security would provide the most diversification if added to the portfolio? Shares of other bank and gold companies.Government bonds. Bonds of pharmaceuticals companies. Shares of industrial and retail firms. Question 13 (1 point) Saved A trend analysis of a company's earnings per share (EPS) shows that the trend value in the fifth year is 150. If the company's EPS in the fifth year was $1.96, what was the company's EPS in the first year? $1.31. $0.98. $2.94. $3.92. Question 14 (1 point) Saved Stefan earned a real rate of return of 3.5% during a period when inflation was 1.65%. What is Stefan's nominal return? 5.15%. 1.85%. 5.78%. 8.50%. Question 15 (1 point) Saved What is the historical relationship that has been observed between the PriceEarning (P/E) levels of stocks and the rate of inflation? P/E levels have been inversely related to the rate of inflation.P/E levels have been positively related to the rate of inflation. P/E rates have shown little relationship with inflation rates. P/E levels have shown a linear relationship to inflation rates. Question 16 (1 point) Saved What factors are used to estimate the dividend possibilities of a stock, 1. Company's stability of profit over a period of years. 2. Company's current stock price. 3. Company's working capital. 4. Company's market capitalization. 1 and 3. 2 and 4. 1 and 2. 3 and 4. Question 17 (1 point) Saved Murad's portfolio has a beta of 1.45. If the market has fallen by 9% over the last week, what is the effect on Murad's portfolio? 13.05% decline in value. 10.45% decline in value. 7.55% increase in value. 6.21% increase in value. Question 18 (1 point) Saved What would be the most appropriate equity investment if an investor felt that the economy was at the peak of the business cycle and expected equity prices to decline?Bank and utility stocks. Capital goods stocks. Forest products and mining stocks. Retail merchandising stocks. Question 19 (1 point) Saved Naveeda is a portfolio manager for the Equality Equity Fund. Her investment strategy is to pay higher prices for stocks that offer good price momentum. What type of portfolio management style is Naveeda using? Growth style. Dynamic style. Tactical style. Value style. Question 20 (1 point) Saved What is the criteria for making meaningful price-earnings ratio (P/E) comparisons between two different firms? Firms should be in a similar or same industry. Firms should have similar debt/equity ratios. Firms should have similar dividend payout ratios. Firms should have similar inventory turnover ratios. Submit Quiz 20 of 20 questions saved