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ABA CTFA Practice Test - Questions Answers, Page 64

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Which of the following is also called the Gordon's Growth Model?

A.
Dividend discount model
A.
Dividend discount model
Answers
B.
Binomial models finance
B.
Binomial models finance
Answers
C.
Capital asset pricing model
C.
Capital asset pricing model
Answers
D.
Black scholes model finance
D.
Black scholes model finance
Answers
Suggested answer: A

A company that might not have historical perspective in background but it will find a place in the future depending on the product or industry is a ___________.

A.
Value company
A.
Value company
Answers
B.
Large cap company
B.
Large cap company
Answers
C.
Small cap company
C.
Small cap company
Answers
D.
Growth company
D.
Growth company
Answers
Suggested answer: D

Which of the following represents an unusually risky stock?

A.
Blue chip stock
A.
Blue chip stock
Answers
B.
Growth stock
B.
Growth stock
Answers
C.
Penny stock
C.
Penny stock
Answers
D.
None of these
D.
None of these
Answers
Suggested answer: C

The trend lines can have the following trends, EXCEPT:

A.
Upward trend
A.
Upward trend
Answers
B.
Downward trend
B.
Downward trend
Answers
C.
Trend range
C.
Trend range
Answers
D.
Round phase
D.
Round phase
Answers
Suggested answer: D

Which of the following is NOT true about technical analysis?

A.
It requires some subjective decision-making
A.
It requires some subjective decision-making
Answers
B.
It requires much accounting information
B.
It requires much accounting information
Answers
C.
Its success would mean markets are not efficient
C.
Its success would mean markets are not efficient
Answers
D.
Technical analysis is older than fundamental analysis
D.
Technical analysis is older than fundamental analysis
Answers
Suggested answer: C

Which of the following orders are placed prior to the execution of trade?

A.
Market and stop orders
A.
Market and stop orders
Answers
B.
Market and limit orders
B.
Market and limit orders
Answers
C.
Stop and limit orders
C.
Stop and limit orders
Answers
D.
Stop and mitigate orders
D.
Stop and mitigate orders
Answers
Suggested answer: A

Which of the following is a current market in which all buying and selling is done on cash or margin basis?

A.
Target market
A.
Target market
Answers
B.
Historic market
B.
Historic market
Answers
C.
Regular market
C.
Regular market
Answers
D.
Borough market
D.
Borough market
Answers
Suggested answer: C

Standard & Poor's Composite Index is composed of how many ''large'' firm stocks?

A.
250
A.
250
Answers
B.
500
B.
500
Answers
C.
750
C.
750
Answers
D.
1000
D.
1000
Answers
Suggested answer: B

Which of the following charts give the economic information on weekly or yearly basis?

A.
Line charts
A.
Line charts
Answers
B.
Bar charts
B.
Bar charts
Answers
C.
Pie charts
C.
Pie charts
Answers
D.
Symbol charts
D.
Symbol charts
Answers
Suggested answer: B

Which of the following captures cash flows during the evaluation period?

A.
Actual diminishing returns
A.
Actual diminishing returns
Answers
B.
Dollar-weighted returns
B.
Dollar-weighted returns
Answers
C.
Time-weighted returns
C.
Time-weighted returns
Answers
D.
Opportunity cost returns
D.
Opportunity cost returns
Answers
Suggested answer: B
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