ABA CTFA Practice Test - Questions Answers, Page 77
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In order to analysis long term investment, the most suitable analysis would be:
A.
Fundamental analysis
B.
Technical analysis
C.
Vertical analysis
D.
Horizontal analysis
The duration of a bond:
A.
Is less than the maturity for bonds paying coupon interest
B.
Is directly related to coupon yield
C.
Decreases with maturity
D.
Is greater than maturity for zero coupon bond
The interest rate stated on a bond, note or other fixed income security, expressed as the percentage of principle value is known as:
A.
Interest free rate
B.
Coupon rate
C.
Discount rate
D.
Bank rate
Which of the following is a basket of shares brought for you by an asset management company?
A.
Hedge fund
B.
Managed fund
C.
Adaptation fund
D.
Mutual fund
Leverage ratios are designed to:
A.
Measure a company's capital structure
B.
Measure the quality of a company's operation
C.
Measure a company's ability to cover its short term obligations
D.
Measure the percentage of earnings paid to shareholders
Which of the following statements hold true for ask price?
A.
It is a price at which a broker is willing to sell a certain security
B.
It is a price at which a broker is willing to buy a certain security
C.
It is a quoted price in order to buy the shares of a company
D.
It is the rate at which a dealer will buy the base currency
Which of the following ratios measure a company's capital structure?
A.
Price to sales ratio
B.
Price to book value ratio
C.
Leverage ratio
D.
Debt coverage ratio
Brokerage fees charged by a stockbroker is an example of:
A.
Margin profit
B.
Insurance premium
C.
Transaction cost
D.
Capital expenditure
The three broad categories of financial assets are:
A.
Debt, equity and money market securities
B.
Corporate securities, derivatives and equity
C.
Debt, equity and derivatives
D.
long term debt, equity and money market securities
Companies that have capital amount of more than $2 billion are known as:
A.
Small cap companies
B.
Mid cap companies
C.
Growth companies
D.
Large cap companies
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