Today's FIN 630 Paper 1 Dec 2011

My today paper
MCQ 28
Subjective 4
2 question in 3 marks
2 question in 5 marks

past papers MCQ repeated

*There are ____ broad categories of financial assets.*

2

*3*

4

5

*
*
*On Balance Volume technique of technical analysis was developed by:*

Charles Dow

*Joseph Granville*

John Bollinger

Welles Wilder
*ABC Furniture’s worth $51 million. What is another term for this?*

*Book value*

Earning per share

Market value
Cost per share
*
*
*Which of the following is TRUE regarding price per earning ratio?*

P/E=Earnings available to common stockholders/outstanding shares

P/E=Market price per share/dividend per share

*P/E=Market price per share/earning per share*

P/E=Dividend per share/earning per share

*
*

*When inflation and interest rates are high, P/E ratios tend to be.*

High

*Low*

Minimum

Average
**
*Which of the following is defined as the total market value of securities
in an investment company’s portfolio divided by the number of investing
company fund shares currently outstanding?*

Discounted value

Present value

Future cash flow value
*Net asset value*
*
*
*Financial securities with a maturity of less than a year from their
original issue date are*

*sold in which of following market?*

*Money market*

Bond market

Equity market

Derivative market
*Which of the following statement about the types of the orders is LEAST
accurate?*

Market orders are orders to buy or sell at the best price available.

Limit orders are orders to buy or sell at or away from the market price.

*A stop buy order is used to protect a short position in a security and is
placed below *

*the current market price.*

Limit order must specify a price and a time limit.
*Which of the following is NOT a fixed income security?*

Bonds

Preferred stock

Saving deposits

*Options*
*A self-regulatory body that licenses brokers and generally oversees the
trading practices of Over the counter(OTC) securities is known as
__________ .*

Securities and Exchange Commission (SEC)

*National Association of Security Dealers (NASD)*

Initial Public Offering (IPO)
Offered for Sale (OFS)
*Which of the following stock’s price move in opposite direction to that of
interest rates?*

Growth stock

Value stock

*Interest sensitive stock*

Defensive stock

*Which of the following is a characteristic of line chart?*

It is efficient in showing more details

*It is simplest and most familiar chart** *

It show the highest degree of accuracy

It can be used for comparing three values

*Which of the following is calculated by dividing gross profit by net sales?
*

*Gross margin*

Operating margin

Net margin

Profit margin

subjective are all new 2 numerical and 2 theory
1. Difference between interest rate and share price (3 marks)
2. Why the people invest in the reputable company?(3 marks)
3. Numerical to calculate current and quick ratio (5 marks)
4. Numerical to calculate gross margin profit (5 marks)