Question:

Tax sheltered variable annuity is

A.

A device for availing tax exemption in an Investment

B.

A device for avoiding tax payment

C.

A device deferring the payment of federal income taxes

D.

A device for earning tax deduction.

Answer» d. A device for earning tax deduction.

Question:

If interest rates rise, the price of preferred stock

A.

is not affected

B.

rises

C.

falls

D.

may rise or fall

Answer» c. falls

Question:

As diversification increases, the total variance of a portfolio approaches ____________.

A.

0

B.

1

C.

The variance of the market portfolio

D.

Infinity

Answer» c. The variance of the market portfolio

Question:

A liquid asset may

A.

be converted into cash

B.

be converted into cash with little chance of loss

C.

not be converted into cash

D.

not be converted without loss

Answer» b. be converted into cash with little chance of loss

Question:

Program trading decreases market efficiency by exaggerating price discrepancies between the cash and futures markets

A.

True

B.

False

C.

all

D.

none

Answer» d. none

Question:

A ________ provides an account of the total revenue generated by a firm during a period (usually a financial year, or a quarter)

A.

Accounting analysis statement

B.

financial re-engineering statement

C.

promotional expenses statement

D.

profit& loss statement

Answer» d. profit& loss statement