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1)Which of the following is not a money market security? a)U.S. Treasury bill b)

ID: 2658978 • Letter: 1

Question

1)Which of the following is not a money market security?

a)U.S. Treasury bill

b)6-month maturity certificate of deposit

c)Common stock

d)Bankers' acceptance


2)Asset allocation refers to _________.

a)the allocation of the investment portfolio across broad asset classes

b)the analysis of the value of securities

c)the choice of specific assets within each asset class

d)none of these options


3)Security selection refers to the ________.

a)allocation of the investment portfolio across broad asset classes

b)analysis of the value of securities

c)choice of specific securities within each asset class

d)top-down method of investing


4)__________ portfolio management calls for holding diversified portfolios without spending effort or resources attempting to improve investment performance through security analysis.

a.Active

b.Momentum

c.Passive

d.Market-timing


5)After much investigation, an investor finds that Intel stock is currently underpriced. This is an example of ______.

a.asset allocation

b.security analysis

c.top-down portfolio management

d.passive management


6) A major cause of mortgage market meltdown in 2007 and 2008 was linked to ________.

a.private equity investments

b.securitization

c.negative analyst recommendations

d.online trading



Explanation / Answer

(1) c)Common stock


(2)a)the allocation of the investment portfolio across broad asset classes


(3)c)choice of specific securities within each asset class


(4)c.Passive


(5)b.security analysis


(6)b.securitization