If your venture is crowd funded using ____, you can reciprocate with _____ when receiving the money.*

1 point

Kickstarter; the board game that you had promised on the website

FundersClub; amenity or reward

Crowdfunder; a thank you note

CircleUp; an autographed picture of your team members as promised on the website

When an arbitrage-based hedge funds buy a convertible bond, they are likely to*

1 point

Lose money

Cross hedge by shorting another convertible bond in the same industry

Hedge the credit risk with shares of the underlying company

Ensure that the common shares of the company can be bought easily

Why are the leveraged ETFs not an ideal long-term investment?*

1 point

Only leveraged ETFs are subjected to higher long-term capital gain tax

The fees of leveraged ETFs are negotiable compared to traditional ETFs

All leveraged ETFs long-term return depends solely on the performance of the S&P500 index

When an ETF drops 10% in value, it will require another more than 10% of return to recover to its original value

Which of the following is not true about the duration?*

1 point

Time to maturity and a bonds coupon rate are two factors that can affect a bonds duration.

A fixed income portfolios duration is computed as the weighted average of individual bond durations held in the portfolio.

Duration measures a bonds or fixed income portfolios price sensitivity to interest rate changes.

Macaulay duration estimates how much money it will take to repay the bonds price by its total cash flows.

One reasons why the median leverage ratio is different across industries is due to*

1 point

the quality of the collateral

none of these

management style

the history of the goods sold or services rendered

Corporate bonds that receive a ____ rating from credit rating agencies are normally sold at a ____ yield.*

1 point

lower; the best

lower; lower

higher; lower

higher; higher

A price-to-book ratio of 0.80 can be interpreted as*

1 point

the market is discounting that 20% of the net assets should be written off

the companys share price is in the 80th percentile ranking

None of these

cost of goods is running at 80% of sales

What is likely to show the lowest risk reward structure? *

1 point

Merger and acquisition arbitrage

US equity neutral strategy

Emerging markets

US equity long short strategy

The Triffin Dilemma suggests that a country with the reserve currency status is likely*

1 point

to run a current account deficit

to have foreigners owning parts of its countrys assets

to have an unsustainable position

All of the above

A quarterly earning result of a $0.01 below the expected EPS*

1 point

Would be considered as normal

Will be of great interest for the SEC

Would not have much impact on the stock price because the missing amount is immaterial compared to the total EPS of a large company

Is likely to lead to investors selling the company stock