郭美新金融学原理期中考试题2021B卷.docxVIP

郭美新金融学原理期中考试题2021B卷 Midterm for Principles of Finance, Spring 2021 March 29, 2:15-4:15; Xi Jie. Instructor: Meixin Guo Part I Multiple Choice Questions (total 40 points) 1. Financial intermediaries exist because small investors cannot efficiently _________. A. diversify their portfolios; B. gather information C. monitor their portfolios; D. all of the answers provide reasons why 2. An example of a financial asset is _________. I. a college education; II. customer goodwill; III. a patent A. I only; B. II only; C. I, II and III only; D. None 3. The _________ price is the price at which a dealer is willing to sell a security. A. bid; B. ask; C. clearing; D. settlement 4. The Dow Jones Industrial Average is _________. A. a price weighted average; B. a value weight and average C. an equally weighted average; D. an unweighted average 5. Which one of the following is not an example of a brokered market? A. Residential real estate market; B. Market for large block security transactions C. Primary market for securities; D. NASDAQ 6. On a given day a stock dealer maintains a bid price of $1000.50 for a bond and an ask price of $1001.50. The dealer made 10 trades which totaled 500 bonds traded that day. What was the dealers gross trading profit for this security? A. $1,375; B. $500; C. $275; D. $1,450 7. You short-sell 200 shares of Rock Creek Fly Fishing Co. with IMM 50%, now selling for $43.75 per share. If you wish to limit your loss to $2,500, you should place a stop-buy order at ____. A. $37.50; B. $62.50; C. $56.25; D. $59.75 8. You put up $100 at the beginning of the year for an investment. The value of the investment grows 4% and you earn a dividend of $3.50. Your HPR was ____. A. 4.00%; B. 3.50%; C. 7.50%; D. 11.00% 9. Rank the following from highest average historical return to lowest average historical return from 1926-2021. I. Small stocks; II. Long term bonds; III. Large sto