Fina3315 Exam 2025 Questions and
Answers 100% Pass
The government is generally - ✔✔a demander of funds in the financial market.
Which of the following are advantages of the buy and hold strategy?
I. rapid accumulation of wealth
II. low transaction costs
III. capital gains taxed at the long−term rate
IV. portfolio requires less time and energy to manage than for most other strategies -
✔✔II, III and IV only
Commonly used multiples for determining a stock's value include
I. price to earnings.
II. price to sales.
III. price to cash flow.
IV. price to dividends. - ✔✔I, II and III only
The expected rate of return and standard deviations, respectively for four stocks are
given below:
ABC 9%, 3%
COPYRIGHT © 2025 BY GRACE AMELIA, ALL RIGHTS RESERVED 1
, CDE 11%, 9%
FGH 12%, 8%
IJK 14%, 10%
Which stock is clearly least desirable? - ✔✔CDE
American investors have several alternatives available to diversify their portfolios
internationally. In terms of transaction costs, which of the alternatives below is least
attractive? - ✔✔direct investment in foreign stocks
Which of the following statements about short selling is (are) true?
I. Short selling requires an initial margin deposit.
II. Short sellers begin a transaction with a sale and end it with a purchase.
III. Short sellers profit when the stock prices rises.
IV. Short selling can be a risky strategy. - ✔✔I, II and IV only
From 1976 through 2014, the dividend yield on stocks has been ________ the coupon
yield on corporate bonds. - ✔✔consistently lower than
Traditional portfolio managers prefer wellminus−known companies because
I. stocks of wellminus−known firms tend to be less risky than stocks of
lesserminus−known firms.
II. individuals are more apt to purchase a mutual fund if it contains stocks of
wellminus−known firms.
III. window dressing encourages the purchase of wellminus−known stocks.
IV. institutional investors tend to exhibit "herdminus−like" behavior. - ✔✔I, II , III and
IV
COPYRIGHT © 2025 BY GRACE AMELIA, ALL RIGHTS RESERVED 2
Answers 100% Pass
The government is generally - ✔✔a demander of funds in the financial market.
Which of the following are advantages of the buy and hold strategy?
I. rapid accumulation of wealth
II. low transaction costs
III. capital gains taxed at the long−term rate
IV. portfolio requires less time and energy to manage than for most other strategies -
✔✔II, III and IV only
Commonly used multiples for determining a stock's value include
I. price to earnings.
II. price to sales.
III. price to cash flow.
IV. price to dividends. - ✔✔I, II and III only
The expected rate of return and standard deviations, respectively for four stocks are
given below:
ABC 9%, 3%
COPYRIGHT © 2025 BY GRACE AMELIA, ALL RIGHTS RESERVED 1
, CDE 11%, 9%
FGH 12%, 8%
IJK 14%, 10%
Which stock is clearly least desirable? - ✔✔CDE
American investors have several alternatives available to diversify their portfolios
internationally. In terms of transaction costs, which of the alternatives below is least
attractive? - ✔✔direct investment in foreign stocks
Which of the following statements about short selling is (are) true?
I. Short selling requires an initial margin deposit.
II. Short sellers begin a transaction with a sale and end it with a purchase.
III. Short sellers profit when the stock prices rises.
IV. Short selling can be a risky strategy. - ✔✔I, II and IV only
From 1976 through 2014, the dividend yield on stocks has been ________ the coupon
yield on corporate bonds. - ✔✔consistently lower than
Traditional portfolio managers prefer wellminus−known companies because
I. stocks of wellminus−known firms tend to be less risky than stocks of
lesserminus−known firms.
II. individuals are more apt to purchase a mutual fund if it contains stocks of
wellminus−known firms.
III. window dressing encourages the purchase of wellminus−known stocks.
IV. institutional investors tend to exhibit "herdminus−like" behavior. - ✔✔I, II , III and
IV
COPYRIGHT © 2025 BY GRACE AMELIA, ALL RIGHTS RESERVED 2
