FINA 3315 EXAM 2025 QUESTIONS
AND ANSWERS 100% PASS
Mary wrote a 40 call on ABC stock at a price of $275. She does not own any shares of
ABC. Mary has
I. Limited her losses to $275
II. Unlimited loss potential
III. Limited her gains to $275
IV. Unlimited profit potential - ✔✔II and III only
Although the major commodities exchanges continue to operate separately, ownership
has been concentrated under - ✔✔The Chicago Mercantile Exchange
Which one of the following statements is correct concerning bond investors? -
✔✔Conservative investors buy bonds when interest rates are high.
T/F Betas actively traded stocks, are readily available from online sources - ✔✔True
A bond with 14 year maturity and a coupon rate of 6.375% has a yield-to-maturity
(YTM) of 4.5%. Assuming the bond's YTM remains constant, the bond's value as it
approaches maturity will most likely: - ✔✔Decrease
COPYRIGHT © 2025 BY GRACE AMELIA, ALL RIGHTS RESERVED 1
, The future market contains two primary types of traders: hedgers and speculators. In
this context, hedgers: - ✔✔Trade future contracts because of a need to protect a position
in an underlying commodity
The confidence index indicates a strong stock market when the - ✔✔Ratio of the
average yield on high grade corporate bonds to the average yield on low grade
corporate bonds rises
The expected rate of return and standard deviation, respectively for four stocks are
given below:
ABC 9%. 3%
CDE 11%. 9%
FGH 12%. 8%
IJK 14%. 10% - ✔✔CDE
Technical analysts consider the stock market to be strong when volume _________ in a
rising market and ________ during a declining market - ✔✔Increase, Decrease
To hedge a bond portfolio, an investor should use - ✔✔an interest rate future
Target date funds - ✔✔Invest in more conservative assets as the target date approaches
The market rate of return increased by 8% while the rate of return on XYZ increased by
4%. The beta of XYZ stock is - ✔✔0.50
Which one of the following best describes "semi-strong" market effciency? - ✔✔All
public information is quickly reflected in security prices.
If the present value of an investment's benefits equal the present value of the
investment's cost, then the investor would earn a - ✔✔Return equal to the discount rate
COPYRIGHT © 2025 BY GRACE AMELIA, ALL RIGHTS RESERVED 2
AND ANSWERS 100% PASS
Mary wrote a 40 call on ABC stock at a price of $275. She does not own any shares of
ABC. Mary has
I. Limited her losses to $275
II. Unlimited loss potential
III. Limited her gains to $275
IV. Unlimited profit potential - ✔✔II and III only
Although the major commodities exchanges continue to operate separately, ownership
has been concentrated under - ✔✔The Chicago Mercantile Exchange
Which one of the following statements is correct concerning bond investors? -
✔✔Conservative investors buy bonds when interest rates are high.
T/F Betas actively traded stocks, are readily available from online sources - ✔✔True
A bond with 14 year maturity and a coupon rate of 6.375% has a yield-to-maturity
(YTM) of 4.5%. Assuming the bond's YTM remains constant, the bond's value as it
approaches maturity will most likely: - ✔✔Decrease
COPYRIGHT © 2025 BY GRACE AMELIA, ALL RIGHTS RESERVED 1
, The future market contains two primary types of traders: hedgers and speculators. In
this context, hedgers: - ✔✔Trade future contracts because of a need to protect a position
in an underlying commodity
The confidence index indicates a strong stock market when the - ✔✔Ratio of the
average yield on high grade corporate bonds to the average yield on low grade
corporate bonds rises
The expected rate of return and standard deviation, respectively for four stocks are
given below:
ABC 9%. 3%
CDE 11%. 9%
FGH 12%. 8%
IJK 14%. 10% - ✔✔CDE
Technical analysts consider the stock market to be strong when volume _________ in a
rising market and ________ during a declining market - ✔✔Increase, Decrease
To hedge a bond portfolio, an investor should use - ✔✔an interest rate future
Target date funds - ✔✔Invest in more conservative assets as the target date approaches
The market rate of return increased by 8% while the rate of return on XYZ increased by
4%. The beta of XYZ stock is - ✔✔0.50
Which one of the following best describes "semi-strong" market effciency? - ✔✔All
public information is quickly reflected in security prices.
If the present value of an investment's benefits equal the present value of the
investment's cost, then the investor would earn a - ✔✔Return equal to the discount rate
COPYRIGHT © 2025 BY GRACE AMELIA, ALL RIGHTS RESERVED 2
