Which of the following is a characteristic of cyclical stock?

Their value is tied with the overall state of economy.

They are low-priced, speculative and risky securities.

They have stable earnings and no extensive liabilities

When Beta >1.0, it indicates that:

Security is more risky than the market

Security is less risky than the market

Security is as risky as the market

Which of the following is an objective of a tax shelter?

Postpone tax liabilities as long as possible

Reduce tax liabilities as much as possible

Shift tax liabilities to other taxpayers

Which of the following equation is FALSE?

Total risk = un-diversified risk + equity risk

Total risk = general risk + specific risk

Total risk = market risk + issuer risk

Total risk = systematic risk + nonsystematic risk

Total risk = un-diversified risk + equity risk

Which of the following ratios will be used if portfolio's numerous other assets systematic risk of investment is the best?

Treynor reward-to-volatility rati

Jensen's differential return ratio

Jennet's return on liquidity ratio

Sharpe reward-to-variability rati

More investors are using technical analysis now than in earlier periods because:

There is now more empirical evidence supporting technical analysis

Investors are able to know the quantitative calculations of technical analysis

More business schools are now teaching technical analysis

The Internet makes more data available to track stock prices

There is now more empirical evidence supporting technical analysis

Which of the following depicts a bullish trend in stock market?

Stock price drop below resistant level

Stock price drop below support level

Stock price rises above support level

Stock price drop below resistant level

Which of the following is the reason stock prices behave the way they do at resistance lines?

Many investors want to sell at this price

Many investors want to buy at this price

Market makers resist moving prices lower than this price

Many investors want to sell at this price

Market makers support prices at this level

More investors are using technical analysis now than in earlier periods because:

There is now more empirical evidence supporting technical analysis

Investors are able to know the quantitative calculations of technical analysis

More business schools are now teaching technical analysis

The Internet makes more data available to track stock prices

There is now more empirical evidence supporting technical analysis

Which of the following statements hold TRUE for ask price?

It is the price at which a broker is willing to sell a certain security

It is the price at which a broker is willing to buy a certain security

It is the quoted price in an order to buy shares of a company

It is the rate at which a dealer will buy the base currency

All of the following are the problems associated to the Dividend Discount Model, EXCEPT:

This model requires constant earnings per share

This model need infinite stream of dividends

This model has uncertain dividend stream

This model must estimate future dividends

This model requires constant earnings per share

ABA CTFA Practice Test 17 - Free Online Exam Prep & Questions

Spam

Selling illegal goods, money scams etc.

Hate Speech

Serious attack on a group.

Harassment and bullying

Harassing an individual (including doxing)

Harmful activities

Threatening or glorifying violence or serious harm, including self-harm

Adult content (Consensual)

Nudity/Sexual content

Sexual exploitation and abuse (child safety)

Sexually explicit or suggestive imagery or writing involving minors

Sexual exploitation and abuse (adults and animals)

Sexually explicit or suggestive imagery or writing involving non-consenting adults or non-humans

Plagiarism

Reusing content without attribution (link and blockquotes)

Poorly written

Not in English or has very bad formatting, grammar, and spelling

Inappropriate credential

Author's credential is offensive, spam, or impersonation

Other

Ex. Illegal content, incomplete question...

ABA CTFA Practice Test 17

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ABA CTFA Practice Tests

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