QUESTION 1
Berkshire Hathaway owns over 50% of the common stock of Coca-Cola Inc.
True
False
QUESTION 2
Warren Buffet's skill and the reason he is one of the wealthiest people in the world has been his ability to time the stock market.
True
False
QUESTION 3
On pretax and basis The S&P 500 Index outperformed the BlackRock Capital Appreciation Fund between 9/2003 and 9/2012.
True
False
QUESTION 4
The present value of a future sum will rise with a fall in the:
interest rate.
investment period.
future sum.
none of these.
QUESTION 5
What is the future value of an initial investment and subsequent investments based on the following information?
rate 10%
nper 15
payment $250
present value $500
$750 x (1.1) x $1,000
$10,431.22
$10,000
$10.031.74
QUESTION 6
Three stocks have share prices of $12, $75, and $30 with total market values of $400 million, $350 million and $150 million respectively. If you were to construct a price-weighted index of the three stocks what would be the index value?
300
39
43
30
QUESTION 7
Berkshire Hathaway has a major short position in the stock of USG Corp. This is because USG manufactures materials for building and the US housing market is stagnant.
True
False
QUESTION 8
Microsoft Corp. comprises roughly 4% of the market value of stocks included in the S&P 50 0 Index. On a day that Microsoft stock rises by 2%, it causes a rise in the S&P 500 of:
2%.
0.08%.
4%.
QUESTION 9
Warren Buffet has endorsed the use of "technical analysis" as a superior way of selecting investments.
True
False
QUESTION 10
Using annual compounding, what is the present value of a $39,703 sum to be received in 16 years when a 9% rate of return can be earned on investment?
$9,406.
$10,000.
$5,000.
$157,633.
QUESTION 11
Berkshire Hathaway owns a call option to buy over 500 million shares of Bank of America. This option expires in September of 2021.
True
False
QUESTION 12
If you buy the ETF, DOG and the Dow Jones Industrial Average increases by 2% what will be your approximate return?
-2%
2%
-4%
4%
3.5%
QUESTION 13
The geometric mean return for a stock with a three-year performance history of +100%, -50%, +95% is:
-1%.
25%.
30%.
48.3%.
QUESTION 14
Warren Buffet would disagree with the following statement: "Of course, a business with terrific economics can be a bad investment if it is bought for too high a price."
True
False
QUESTION 15
principal $1,000
rate 1 1%
rate 2 1.250%
rate 3 1.500%
rate 4 1.750%
rate 5 2.000%
rate 6 2.250%
rate 7 2.500%
rate 8 2.750%
rate 9 3.000%
rate 10 3.250%
Based on the above information, what is teh future value of $1,000 invested for ten periods.
$1,000*1,000*(1.3250)
$1,000 x (1.1)(1.2)
$1, 341.62
$1,233.71
QUESTION 16
Berkshire Hathaway Inc. owns over 300 million shares of Coca-Cola Inc.
True
False
QUESTION 17
Consider a price-weighted stock average with three stocks priced at $40, $60, and $80 per share. If the divisor is 2.5, what percentage change in the average occurs when the stocks change price to $43, $61, and $79?
2.0%
1.67%
2.64%
4.17%