TRUE/FALSE. Write \'T\' if the statement is true and \'F\' if the statement is f

ID: 2650002 • Letter: T

Question

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

13) Treasury bond yields are commonly used as the basis for yield curves because they are low risk and homogeneous in nature.

13) ______

14) The mutual fund, and not the investor, is responsible for all income taxes on capital gains and

dividends earned by the fund.

14) ______

15) Like ordinary stocks, exchange traded funds (ETFs) can be sold short.

15) ______

16) An investment portfolio should be built around the needs of the individual investor.

16) ______

17) Only capital gains that have been realized should be included in the measurement of a portfolio's return over a given period of time.

17) ______

18) Over a period of time if an investment has not met its return objective, it should be sold. 18) ______

19) Options are created by investors.

19) ______

20) Puts and calls are issued by the same corporation that issued the underlying stock. 20) ______

21) The owner of a put is obliged to sell the underlying security at the strike price on the date of

expiration.

21) ______

22) The party that accepts the legal obligation to stand behind the option is the buyer of the contract.

22) ______

23) The buyer of a put expects the price of the underlying stock to rise.

23) ______

24) A put option has a strike price of $32. The current price of the stock is $34. The put option is

said to be "in-the-money."

24) ______

13. T: Treasury Bond is the safest investment and are homogenous in nature. So, they are used as the basis of Yield curve.

14. F: Mutual Fund Passes through the resposibility of the income taxes on Capital Gain and Dividend earned by the Fund to the investor.

15. T: Exchange Traded Funds have all the characteristics of the ordinary shares. So, they can be sold Short.

16. T: An efficient portfolio must fulfill the needs of individual investor.

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