ABA CTFA Practice Test - Questions Answers, Page 2

List of questions
Question 11

For $1,000 you can purchase a 5-year ordinary annuity that will pay you a yearly payment of $263.80 for 5 years. The compound annual interest rate implied by this arrangement is closest to:
Question 12

To increase a given present value, the discount rate should be adjusted:
Question 13

Which one of the followings is a mutual fund that pools the funds of many small investors and purchases high-return, short-term marketable securities?
Question 14

It is a federally insured savings account, offered by banks and other depository institutions, that competes with money market mutual funds. What is it?
Question 15

A comprehensive deposit account, offered primarily by brokerage houses and mutual funds is a/an:
Question 16

Money market deposit account is a federally insured savings account, offered by banks and other depository institutions, that competes with money market mutual funds. Depositors can check-writing privileges or ATM to access MMDA accounts. A major problem with the growing popularity of interest-paying checking accounts has been:
Question 17

This type of risk is avoidable through proper diversification:
Question 18

A statistical measure of the degree to which two variables (e.g., securities' returns) move together is:
Question 19

According to the capital-asset pricing model (CAPM), a security's expected (required) return is equal to the risk-free rate plus a premium:
Question 20

The risk-free security has a beta equal to , while the market portfolio's beta is equal to .
Question