ABA CTFA Practice Test - Questions Answers, Page 71
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The trend lines can have following trends, Except:
A.
Upward trend
B.
Downward trend
C.
Trend range
D.
Round phase
Which of the following measures variation of the bond's price yield curve from a straight line?
A.
Bond duration
B.
Bond convexity
C.
Bond valuation
D.
All of the above
Which of the following is the basic exchange rate in the economy?
A.
External rate of return
B.
Real rate of return
C.
Rate of return on assets
D.
Net present value rate of return
The higher the coupon on the bond:
A.
The lesser is its reinvestment rate risk
B.
The higher is its reinvestment rate risk
C.
The higher is its reinvestment rate of return
D.
The lesser is its reinvestment rate of return
In which of the following condition an investment is considered desirable?
A.
When the cost is less than the future value of present cash flows
B.
When profit is less than the present value of future cash flows
C.
When present value of future cash flows is less than the cost
D.
None of these
Which of the following depicts a bullish trend in the stock market?
A.
Stock price drop below support level
B.
Stock price drop below resident level
C.
Stock price never drops below support level
D.
None of these
Which of the following bond will have the longest duration?
A.
5 year, 10 percent coupon bond
B.
5 year, 15 percent coupon bond
C.
10 year, zero percent coupon bond
D.
10 year, 10 percent coupon bond
Dow Jones industrial average is composed of how many blue chip stocks?
A.
10
B.
30
C.
50
D.
70
Which of the following make use of divisor to adjust for stock splits?
A.
Capitalization weighting
B.
Price weighting
C.
Equal weighting
D.
Base weighting
The industries that are least affected by recessions and economic adversity are referred which of the following?
A.
Growth industries
B.
Cyclical industries
C.
Interest sensitive industries
D.
Defensive industries
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