Objective type questions on stocks and risk analysis
1. The measure of dispersion of a data set calculated from the square root of the value for variance is known as the:
a) Range
b) Mean deviation
c) Standard deviation
d) Absolute deviation
2. In a civil action brought by one party after a breach of contract, a court will attempt to:
a) Punish the party that breached the contract by awarding punitive damages to the injured party
b) Put the injured party in the same position he/she would have been in if the contract had been performed
c) Award compensatory damages and, and some cases, consequential damages to the injured party, if the breaching party had known about special circumstances that caused the additional loss
d) Both b and c
3. Which of the following statements are TRUE about the Efficient Market Hypothesis?
a) It is difficult for investors to select a portfolio of common stocks that can outperform the stock market in general
b) If investors really study and understand the market, they should be able to select a portfolio of common stocks that can outperform the stock market in general
c) The efficient market hypothesis is states in three forms - weak, semi strong, and strong
d) A and C are true
4. Increasing unemployment compensation is an example of:
a) an expansionary fiscal policy
b) an contractionary fiscal policy
c) an expansionary monetary policy
d) a contractionary monetary policy
5. On the costs of foods manufactured schedule, depreciation on factory equipment:
a) Is not listed because it is included with Depreciation Expense on the income statement
b) Appears in the manufacturing overhead section
c) Is not listed because it is not a product cost
d) Is not an investor able cost
6. ZBA Electronics, a manufacturer of computers, wants to open markets in Japan, China, and the European Union countries. The company wants to continue distributing the same product with the same marketing as if the entire world as a single entity. This is an example of:
a) A national strategy
b) A multinational strategy
c) A global strategy
d) An international strategy
7. A market structure in which there are many firms selling differentiated products is called:
a) Monopolistic competition
b) A monopoly
c) An oligopoly
d) Perfect competition
8. A set of 20 data points is collected from an ozone monitoring station and an average concentration is desired to report to the public. However, a few high outlier readings that also repeat exist, possibly from a false reading or two (although this is not known for certain). Which would be the best measure of central tendency in this case?
a) The mean
b) The median
c) The mode
d) The standard deviation
9. Sally Hornknob was the owner and operator for a \"Hike \'til You Drop\" shoe store. Before leaving on a month-long hiking adventure in the wilds of Kenya, Sally appointed one of her employee, Bob Bunyan, to operate the store during her absence and gave him a T-Shirt with the words, \"Big Boot - Manager\" printed on the front to wear while he worked in the store. Sally told Bob to do whatever was necessary to operate the store, except sell \"Polar Pillow\" hiking boots, because of recent reports of problems with that brand of boots. While Sally was looking for seashells on the Kenya seashore, Bob sold \"Polar Pillow\" boots to a customer, a customer, names Joe Hiker.
The sale of the hiking boots could be a binding contract upon Sally, because Bob:
a) Possessed actual authority to sell the boots
b) Possessed implied authority to sell the boots
c) Possessed apparent authority to sell the boots
d) Possessed both actual and implied authority to sell the boots
10. The 1986 proposed merger between Coca Cola and 7Up would have been considered to be a:
a) Horizontal merger
b) Vertical merger
c) Conglomerate merger
d) Diagonal merger