郭美新金融学原理期中考试题2014B卷.docx

Midterm for Principles of Finance, Spring 2014March 29, 2:15-4:15; Xi Jie.Instructor: Meixin GuoPart I Multiple Choice Questions (total 40 points)1.?Financial intermediaries exist because small investors cannot efficiently _________.?A.?diversify their portfolios; B.?gather informationC.?monitor their portfolios;D.?all of the answers provide reasons why2.?An example of a financial asset is _________.I. a college education; II. customer goodwill; III. a patent?A.?I only; B.?II only; C.?I, II and III only; D.?None3. The _________ price is the price at which a dealer is willing to sell a security.?A.?bid; B.?ask; C.?clearing; D.?settlement4. The Dow Jones Industrial Average is _________.?A.?a price weighted average; B.?a value weight and averageC.?an equally weighted average; D.?an unweighted average5. Which one of the following is not an example of a brokered market??A.?Residential real estate market; B.?Market for large block security transactionsC.?Primary market for securities; D.?NASDAQ6.?On a given day a stock dealer maintains a bid price of $1000.50 for a bond and an ask price of $1001.50. The dealer made 10 trades which totaled 500 bonds traded that day. What was the dealers gross trading profit for this security??A.?$1,375; B.?$500; C.?$275; D.?$1,4507. You short-sell 200 shares of Rock Creek Fly Fishing Co. with IMM 50%, now selling for $43.75 per share. If you wish to limit your loss to $2,500, you should place a stop-buy order at ____.?A.?$37.50; B.?$62.50; C.?$56.25; D.?$59.758. You put up $100 at the beginning of the year for an investment. The value of the investment grows 4% and you earn a dividend of $3.50. Your HPR was ____.?A.?4.00%; B.?3.50%; C.?7.50%; D.?11.00%9. Rank the following from highest average historical return to lowest average historical return from 1926-2008. I. Small stocks; II. Long term bonds; III. Large stocks; IV. T-bills?A.?I, II, III, IV; B.?III, IV, II, I; C.?I, III, II, IV; D.?III, I, II, IV10. You have calculated the historica