BLOOMBERG MARKET CONCEPTS EXAM
PREP TEST BANK VERIFIED QUESTIONS
AND CORRECT ANSWERS
●● What makes the stock market more appealing than the bond market
for some investors?
Answer: The opportunity to earn a huge return
●● Based on the attached SPX GICS Sector table from the WEI function
below, which sector contributed the largest daily decrease to the SPX
Index at this time?
Answer: Information Technology
●● Based on the MOV screenshot taken on 7/19/2023 which stock is
contributing the most to the SPX index?
Answer: CRM
●● Considering the details on company listings, which of the following
is NOT a valid reason for a company to delist from a stock exchange?
Answer: the company's owners wish to pursue other business interests
●● What is the significance of the financial leverage Jenny benefited
from in her house purchase?
, Answer: It amplified the impact of her income changes on her
discretionary income
●● What happens to the residual cash flows for equity holders if a
company's revenue decreases but its fixed costs remain the same?
Answer: The residual cash flows for equity holders decrease
●● What is the best-case scenario for a bond investor who holds a bond
to maturity?
Answer: They receive their original investment back plus an amount
equal to the yield each year
●● A person who is risk-averse is more likely to invest in
Answer: Bonds, because they offer known fixed repayments
●● Based on the two TRA screenshots below, what can we infer about
he effects of additional returns from reinvesting dividends in the INDU
versus the CCMP indices over this 5-year period?
Answer: Reinvesting Dividends have a much greater effect in the INDU
index because it is composed of much higher dividend paying stocks
than the CCMP index.
●● Based on the WCRS screenshot below, if at the end of 2013 you had
invested an equal weighted portion of $100,000 in NVIDIA and nine
other companies that went bankrupt, how would your performance
PREP TEST BANK VERIFIED QUESTIONS
AND CORRECT ANSWERS
●● What makes the stock market more appealing than the bond market
for some investors?
Answer: The opportunity to earn a huge return
●● Based on the attached SPX GICS Sector table from the WEI function
below, which sector contributed the largest daily decrease to the SPX
Index at this time?
Answer: Information Technology
●● Based on the MOV screenshot taken on 7/19/2023 which stock is
contributing the most to the SPX index?
Answer: CRM
●● Considering the details on company listings, which of the following
is NOT a valid reason for a company to delist from a stock exchange?
Answer: the company's owners wish to pursue other business interests
●● What is the significance of the financial leverage Jenny benefited
from in her house purchase?
, Answer: It amplified the impact of her income changes on her
discretionary income
●● What happens to the residual cash flows for equity holders if a
company's revenue decreases but its fixed costs remain the same?
Answer: The residual cash flows for equity holders decrease
●● What is the best-case scenario for a bond investor who holds a bond
to maturity?
Answer: They receive their original investment back plus an amount
equal to the yield each year
●● A person who is risk-averse is more likely to invest in
Answer: Bonds, because they offer known fixed repayments
●● Based on the two TRA screenshots below, what can we infer about
he effects of additional returns from reinvesting dividends in the INDU
versus the CCMP indices over this 5-year period?
Answer: Reinvesting Dividends have a much greater effect in the INDU
index because it is composed of much higher dividend paying stocks
than the CCMP index.
●● Based on the WCRS screenshot below, if at the end of 2013 you had
invested an equal weighted portion of $100,000 in NVIDIA and nine
other companies that went bankrupt, how would your performance
