1. If a stock had a beta of 1.5 we would say that

a. it is less volatile than the market

b. it is more volatile than the market

c. It has a higher chance of generating returns

d. it has a lower chance of generating returns

2. True/False. Mutual funds represent a basket of diversified securities

3. True/False IPO’s always occur in the primary market and never in the secondary market

4. True/False For investments in stocks, capital gains are generally taxed while income/dividends are not

5. True/False Money Markets are a proxy for cash

6. Liquidity risk will most likely limit your availability to:

a. Increase returns

b. Obtain cash

c. Diversify your portfolio

7. If interest rates are rising, in general we would say the overall bond market would

a. rise in value

b. existing bonds market value will not be impacted

c. lower in value

d. lower in volatility

8. ETF’s are generally:

a. Passive Investments

b. Active Investments

c. Hybrid Investments

9. If Bond is purchased at a discount, Yield to Maturity [YTM] will be ________ than the coupon [or stated] rate

a. Less

b. Greater

c. equal