1. Question 16

   1 Point

   Asset allocation refers to the _________.

   1. none of the answers define asset allocation

   2. analysis of the value of securities

   3. allocation of the investment portfolio across broad asset classes

   4. choice of specific assets within each asset class

2. Question 17

   1 Point

   _________ are real assets.

   1. Stocks

   2. Bonds

   3. Commercial paper

   4. Production equipment

3. Question 18

   1 Point

   Which of the following instruments are contracts but are not securities

   1. options

   2. stocks

   3. options and swaps

   4. swaps

4. Question 19

   1 Point

   A market in which the price equals the true economic value

   1. is risk-free

   2. is efficient

   3. has high expected returns

   4. is organized

5. Question 20

   1 Point

   John calls his stockbroker and instructs him to purchase 100 shares of Microsoft Corporation common stock. This transaction occurs in the

   1. credit market.

   2. futures market.

   3. secondary market.

   4. primary market.

6. Question 21

   1 Point

   Stone Harbor Products takes out a bank loan. It receives $100,000 and signs a promissory note to pay back the loan over 5 years.

   1. A real asset was created in this transaction.

   2. A financial asset was traded for a real asset in this transaction.

   3. A financial asset was destroyed in this transaction.

   4. A new financial asset was created in this transaction