FINA 4500 Test Exam Questions with Verified
Correct Answers
A private bourse is owned and operated by a ________ founded for the purpose of trading
securities.
corporation
The stock markets of the least developed countries are called ________ markets.
frontier
When one corporation owns shares in another, the practice is known as ________.
cross-holding
The ________ that attempted to separate commercial from investment banking practices by
banks in the U.S. has been dismantled in recent years
Glass-Steagall Act
________, unlike ADRs, can trade across many markets and settle in the currency of each
market.
Global depository receipts
In a ________, the market portfolio is defined as the aggregate asset holdings of all investors
in a particular country.
domestic CAPM
The locus of the portfolios in expected return-standard deviation space that have the
minimum variance for each expected return is called
mean standard deviation frontier.
The exposure of a return to fluctuations in the return on the market portfolio, which cannot
be diversified away is called
market risk.
Correct Answers
A private bourse is owned and operated by a ________ founded for the purpose of trading
securities.
corporation
The stock markets of the least developed countries are called ________ markets.
frontier
When one corporation owns shares in another, the practice is known as ________.
cross-holding
The ________ that attempted to separate commercial from investment banking practices by
banks in the U.S. has been dismantled in recent years
Glass-Steagall Act
________, unlike ADRs, can trade across many markets and settle in the currency of each
market.
Global depository receipts
In a ________, the market portfolio is defined as the aggregate asset holdings of all investors
in a particular country.
domestic CAPM
The locus of the portfolios in expected return-standard deviation space that have the
minimum variance for each expected return is called
mean standard deviation frontier.
The exposure of a return to fluctuations in the return on the market portfolio, which cannot
be diversified away is called
market risk.
