FIN 385 FIN385 Midterm Exam with Answers (DeVry)

FIN 385 FIN385 MIDTERM (DEVRY)

(TCOs3,4)Which of the following is not true about bond indexes? 

(TCO2)Investors generally measure the success of any investment they make based on ______. 

(TCO2)A good indication of how there turns of two different stocks may go up together or down together is called the stock's ______.

(TCO2)How do annual percentage rates(APR) and effective annual rates (EAR) differ? 

(TCO2)If more securities lower a portfolio's risk,then______. 

(TCO2)Which of the following can be said about a verage bond versus stock returns over the long run? 

(TCO2)Which of the following sets of terms mean a bout the same thing? 

(TCO8)Adisadvantageofjust-in-timeinventorytechniquesis ______. 

(TCO1)Ifthebidpriceofabondis908/32,itmeansthatabidder is offering ____. 

The dollar value of all forms of bonds issued over the last several years has approached approximately _____. 

(TCO 1) In terms of assessing a corporate bond's risk of default, what would be the proper order in terms of decreasing risk of default? 

(TCO 1) Why is equivalent taxable yield important? 

(TCO 1) Which of the following features of corporate bonds makes issuing them particularly attractive to the issuing company? 

(TCO 5) The bid and ask prices of bonds are quoted in the financial press as what? 

(TCO 5) As business people, why do we study macroeconomics? 

(TCO 5) Sector rotation would be of importance to ______. 

 The typical trade-off in terms of deciding on a good credit policy is between _______. 

(TCO 5) To what does the term structure of interest rates refer? 

(TCO 5) Preferred stock falls under the category of fixed-income securities primarily because _______. 

(TCO 5) The appropriate market value of price of a bond is calculated by determining what?