single choice (each 2points. total 60 points) 1. If a Treasury note has a bid price of $985, the quoted bid price in the Wall Street Journal would be E. 98:05. D. 98:24 C. 97:80 B. 98:16 A. 98:50 2. A 5.5% 20-year municipal bond is currently priced to yield 7.2 %. For a taxpayer in the 33 % marginal tax bracket, this bond would offer an equivalent taxable yield of B. 10.75% E. none of the above. D. 4.82 %. C. 11.40. A. 8.20%. 3. The stocks on the Dow Jones Industrial Average A. have remained unchanged since the creation of the index. B. include most of the stocks traded on the NYSE. C. are changed occasionally as circumstances dictate. D. consist of stocks on which the investor cannot lose money E.B and C 4. Which of the following securities is a money market instrument? C. municipal bond. B. Treasury bond. A. Treasury note E. mortgage security D. commercial paper. 5. A put option allows the holder to A. buy the underlying asset at the strike price on or before the expiration date. B. sell the underlying asset at the strike price on or before the expiration date. C. sell the option in the open market prior to expiration. D.B and C. E. A and C. 6. Of the following types of mutual funds portfolio of stocks woridwide (including the U.S.) should choose an investor that wishes to invest in a diversified A. international funds. B. global funds. C. regional funds. E. none of the above. D. emerging market funds. 7. An example of a derivative security is A. a common share of General Motors B. a call option on Mobil stock D.B and C C. a commodity futures contract E.A and B