Exhibit 5.7 Use the Information Below for the Following Problem(S) $\begin{array}{cccccc} & \text { Number } &{\text { December 31, 2011 }} &&{\text { December 31, 2012 }} \\ \text { Stock } & \text { of Shares } & \text { Price } & \text { Value } & \text { Price } & \text { Value } \\ \hline \mathrm{A} & 5,000 & \$ 20 & \$ 100,000 & \$ 25 & \$ 125,000 \\ \mathrm{~B} & 8,000 & \$ 40 & \$ 320,000 & \$ 42 & \$ 304,000 \\ \mathrm{C} & 15,000 & \$ 10 & \$ 150.000 & \$ 15 & \$ 225,000 \end{array}$ -Refer to Exhibit 5.7.If the December 31,2011 equal weighted index for ABC was 100,what is the equal weighted index for ABC on December 31,2012?

A) 108.35 B) 114.74 C) 120.19 D) 126.67 E) 131.54 A) 108.35 B) 114.74 C) 120.19 D) 126.67 E) 131.54 D

Exhibit 5.2 Use the Information Below for the Following Problem(S) $\begin{array}{lcccccc} ~&&\text { Stock Price } &&& \text { \# Shares } \\ & \mathbf{X} & \mathbf{Y} & \mathbf{Z} & \mathbf{X} & \mathbf{Y} & \mathbf{Z} \\ \text { Jan. } 13,2005 & 20 & 40 & 30 & 1000 & 2000 & 1000^{*} \\ \text { Jan. } 14,2005 & 25 & 42 & 18 & 1000 & 2000 & 2000 \\ \text { Jan. } 15,2005 & 27 & 45 & 8 & 1000^{* *} & 2000 & 2000 \\ \text { Jan. } 16,2005 & 20 & 40 & 10 & 3000 & 2000 & 2000 \end{array}$ *2:1 Split on Stock Z after Close on Jan. 13, 2005 **3:1 Split on Stock X after Close on Jan. 15, 2005 The base date for index calculations is January 13, 2005 -Refer to Exhibit 5.2.Calculate a price weighed average for January 15th.

A) 30 B) 36.13 C) 32 D) 34 E) None of the above A) 30 B) 36.13 C) 32 D) 34 E) None of the above C

Exhibit 5.4 Use the Information Below for the Following Problem(S) \[\begin{array} { c c } \text { Year } & \text { \% Price Chinge for stark Index } \\ \hline 2000 & 8.0 \% \\ 2001 & 10.0 \% \\ 2002 & - 14.0 \% \\ 2003 & 20.0 \% \\ 2004 & - 10.0 \% \end{array}\] -Refer to Exhibit 5.4.Calculate the average annual rate of change for this index for the 5 year period using the geometric mean.

A) 0.09% B) 1.99% C) 3.99% D) 4.50% E) 4.67% A) 0.09% B) 1.99% C) 3.99% D) 4.50% E) 4.67%

Exhibit 5.7 Use the Information Below for the Following Problem(S) $\begin{array}{cccccc} & \text { Number } &{\text { December 31, 2011 }} &&{\text { December 31, 2012 }} \\ \text { Stock } & \text { of Shares } & \text { Price } & \text { Value } & \text { Price } & \text { Value } \\ \hline \mathrm{A} & 5,000 & \$ 20 & \$ 100,000 & \$ 25 & \$ 125,000 \\ \mathrm{~B} & 8,000 & \$ 40 & \$ 320,000 & \$ 42 & \$ 304,000 \\ \mathrm{C} & 15,000 & \$ 10 & \$ 150.000 & \$ 15 & \$ 225,000 \end{array}$ -Refer to Exhibit 5.7.If the December 31,2011 value weighted index for ABC was 100,what is the value weighted index for ABC on December 31,2012?

A) 108.35 B) 114.74 C) 120.19 D) 126.67 E) 131.54 A) 108.35 B) 114.74 C) 120.19 D) 126.67 E) 131.54

Exhibit 5.3 Use the Information Below for the Following Problem(S) \[\begin{array} { c c } Y \text { ear } & \% \text { Price Change for CE Industries } \\ \hline 2000 & 10.0 \% \\ 2001 & 12.0 \% \\ 2002 & 10.0 \% \\ 2003 & 11.0 \% \\ 2004 & 6.0 \% \end{array}\] -Refer to Exhibit 5.3.Calculate the average annual rate of change for GB Industries for the 5 year period using the arithmetic mean.

A) 0.098% B) 9.80% C) 8.50% D) 8.00% E) 89.00% A) 0.098% B) 9.80% C) 8.50% D) 8.00% E) 89.00%

Exhibit 5.1 Use the Information Below for the Following Problem(S) $\begin{array}{c} \begin{array}{lll} \text { Number of shares} \end{array} \begin{array}{lll} \text { Glasing Prices} \end{array} \begin{array}{lll} \text { (per share)} \end{array} \end{array}$ $\begin{array}{cccc} \text { Companies } & \text { outstanding } & \text { Day T } & \text { Day T + 1 } \\ \hline 1 & 2,000 & \$ 30.00 & \$ 25.00 \\ 2 & 7,000 & 55.00 & 60.00 \\ 3 & 5,000 & 20.00 & 25.00 \\ 4 & 4.000 & 40.00 & 45.00 \end{array}$ -Refer to Exhibit 5.1.Compute an unweighted price indicator series,using geometric means.What is the percentage change in the index from Day T to Day T+1? Assume a base index value of 100 on Day T.

A) 5.35% B) 7.48% C) 9.93% D) 6.33% E) None of the above A) 5.35% B) 7.48% C) 9.93% D) 6.33% E) None of the above

Exhibit 5.6 Use the Information Below for the Following Problem(S) Price \[\begin{array} { c c c c } \text { Stack } & \text { Number of Shares } & \text { Day T } & \text { D.y T + 1 } \\ \hline Q & 5,000,000 & 80 & 95 \\ R & 8,000,000 & 60 & 55 \\ \text { S } & 15,000,000 & 20 & 24 \end{array}\] -Refer to Exhibit 5.6.If an equal-weighted index is constructed on Day T with $10,000 in each stock,what is the percentage change in wealth for this index on Day T + 1? Assume a base index value of 100 on Day T.

A) 8.65% B) 10.14% C) 15.69% D) 30.42% E) 47.08% A) 8.65% B) 10.14% C) 15.69% D) 30.42% E) 47.08%

Exhibit 5.2 Use the Information Below for the Following Problem(S) $\begin{array}{lcccccc} ~&&\text { Stock Price } &&& \text { \# Shares } \\ & \mathbf{X} & \mathbf{Y} & \mathbf{Z} & \mathbf{X} & \mathbf{Y} & \mathbf{Z} \\ \text { Jan. } 13,2005 & 20 & 40 & 30 & 1000 & 2000 & 1000^{*} \\ \text { Jan. } 14,2005 & 25 & 42 & 18 & 1000 & 2000 & 2000 \\ \text { Jan. } 15,2005 & 27 & 45 & 8 & 1000^{* *} & 2000 & 2000 \\ \text { Jan. } 16,2005 & 20 & 40 & 10 & 3000 & 2000 & 2000 \end{array}$ *2:1 Split on Stock Z after Close on Jan. 13, 2005 **3:1 Split on Stock X after Close on Jan. 15, 2005 The base date for index calculations is January 13, 2005 -Refer to Exhibit 5.2.What is the divisor at the beginning of January 16th?

A) 1.9375 B) 3.0 C) 2.5 D) 2.2734 E) None of the above A) 1.9375 B) 3.0 C) 2.5 D) 2.2734 E) None of the above

Exhibit 5.2 Use the Information Below for the Following Problem(S) $\begin{array}{lcccccc} ~&&\text { Stock Price } &&& \text { \# Shares } \\ & \mathbf{X} & \mathbf{Y} & \mathbf{Z} & \mathbf{X} & \mathbf{Y} & \mathbf{Z} \\ \text { Jan. } 13,2005 & 20 & 40 & 30 & 1000 & 2000 & 1000^{*} \\ \text { Jan. } 14,2005 & 25 & 42 & 18 & 1000 & 2000 & 2000 \\ \text { Jan. } 15,2005 & 27 & 45 & 8 & 1000^{* *} & 2000 & 2000 \\ \text { Jan. } 16,2005 & 20 & 40 & 10 & 3000 & 2000 & 2000 \end{array}$ *2:1 Split on Stock Z after Close on Jan. 13, 2005 **3:1 Split on Stock X after Close on Jan. 15, 2005 The base date for index calculations is January 13, 2005 -Refer to Exhibit 5.2.Calculate a price weighted average for January 16th.

A) 30 B) 32 C) 34 D) 36.13 E) None of the above A) 30 B) 32 C) 34 D) 36.13 E) None of the above

Exhibit 5.6 Use the Information Below for the Following Problem(S) Price \[\begin{array} { c c c c } \text { Stack } & \text { Number of Shares } & \text { Day T } & \text { D.y T + 1 } \\ \hline Q & 5,000,000 & 80 & 95 \\ R & 8,000,000 & 60 & 55 \\ \text { S } & 15,000,000 & 20 & 24 \end{array}\] -Refer to Exhibit 5.6.Calculate a value weighted average for Day T + 1.Assume a base index value of 100 on Day T.

A) 46.20 B) 53.33 C) 54.12 D) 92.39 E) 108.23 A) 46.20 B) 53.33 C) 54.12 D) 92.39 E) 108.23

Exhibit 5.5 Use the Information Below for the Following Problem(S) \[\begin{array} { c c c c c } \text { Stack } & \begin{array} { c } \text { 31-Dec-03 } \\ \text { Price } \end{array} & \begin{array} { c } \text { 31-Dec-03 } \\ \text { Shares } \end{array} & \begin{array} { c } \text { 31-Dec-04 } \\ \text { Price } \end{array} & \begin{array} { c } \text { S1-Dec-04 } \\ \text { Shares } \end{array} \\ \hline W & \$ 75.00 & 10000 & \$ 50.00 & 20000 \\ X & \$ 150.00 & 5000 & \$ 65.00 & 10000 \\ Y & \$ 2500 & 20000 & \$ 35.00 & 20000 \\ Z & \$ 20.00 & 25000 & \$ 50.00 & 25000 \end{array}\] Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003. -Refer to Exhibit 5.5.Calculate the price weighted series for Dec 31,2003,prior to the splits.

A) 81.69 B) 100.0 C) 72.5 D) 121.25 E) 119.25 A) 81.69 B) 100.0 C) 72.5 D) 121.25 E) 119.25

Exam 5: Security-Market Indexes

Exhibit 5.7 Use the Information Below for the Following Problem(S) Number December 31, 2011 December 31, 2012 Stock of Shares Price Value Price Value 5,000 \ 20 \ 100,000 \ 25 \ 125,000 8,000 \ 40 \ 320,000 \ 42 \ 304,000 15,000 \ 10 \ 150.000 \ 15 \ 225,000 -Refer to Exhibit 5.7.If the December 31,2011 equal weighted index for ABC was 100,what is the equal weighted index for ABC on December 31,2012?

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

D

There are no composite series currently available that will measure the performance of all securities (i.e.stocks and bonds)in a given country.

Free

(True/False)

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(78)

Question 2

Correct Answer:

Verified

False

Exhibit 5.2 Use the Information Below for the Following Problem(S) \nobreakspace Stock Price \# Shares Jan. 13,2005 20 40 30 1000 2000 100 Jan. 14,2005 25 42 18 1000 2000 2000 Jan. 15,2005 27 45 8 100 2000 2000 Jan. 16,2005 20 40 10 3000 2000 2000 *2:1 Split on Stock Z after Close on Jan. 13, 2005 **3:1 Split on Stock X after Close on Jan. 15, 2005 The base date for index calculations is January 13, 2005 -Refer to Exhibit 5.2.Calculate a price weighed average for January 15th.

Free

(Multiple Choice)

4.8/5

(74)

Question 3

Correct Answer:

Verified

C

Exhibit 5.4 Use the Information Below for the Following Problem(S) Year \% Price Chinge for stark Index 2000 8.0\% 2001 10.0\% 2002 -14.0\% 2003 20.0\% 2004 -10.0\% -Refer to Exhibit 5.4.Calculate the average annual rate of change for this index for the 5 year period using the geometric mean.

(Multiple Choice)

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Question 4

The Dow Jones Industrial Average has been criticized for being blue-chip biased.

(True/False)

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Question 5

Which of the following is not a U.S.investment-grade bond index?

(Multiple Choice)

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Question 6

A value weighted index automatically adjusts for stock splits.

(True/False)

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Question 7

An equally weighted indicator series is also known as an unweighted indicator series.

(True/False)

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Question 8

Exhibit 5.7 Use the Information Below for the Following Problem(S) Number December 31, 2011 December 31, 2012 Stock of Shares Price Value Price Value 5,000 \ 20 \ 100,000 \ 25 \ 125,000 8,000 \ 40 \ 320,000 \ 42 \ 304,000 15,000 \ 10 \ 150.000 \ 15 \ 225,000 -Refer to Exhibit 5.7.If the December 31,2011 value weighted index for ABC was 100,what is the value weighted index for ABC on December 31,2012?

(Multiple Choice)

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Question 9

Of the following indices,which includes the most comprehensive list of stocks?

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Question 10

Exhibit 5.3 Use the Information Below for the Following Problem(S) Y ear \% Price Change for CE Industries 2000 10.0\% 2001 12.0\% 2002 10.0\% 2003 11.0\% 2004 6.0\% -Refer to Exhibit 5.3.Calculate the average annual rate of change for GB Industries for the 5 year period using the arithmetic mean.

(Multiple Choice)

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Question 11

Exhibit 5.1 Use the Information Below for the Following Problem(S) Number of shares Glasing Prices (per share) Companies outstanding Day T Day T + 1 1 2,000 \ 30.00 \ 25.00 2 7,000 55.00 60.00 3 5,000 20.00 25.00 4 4.000 40.00 45.00 -Refer to Exhibit 5.1.Compute an unweighted price indicator series,using geometric means.What is the percentage change in the index from Day T to Day T+1? Assume a base index value of 100 on Day T.

(Multiple Choice)

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Question 12

Exhibit 5.6 Use the Information Below for the Following Problem(S) Price Stack Number of Shares Day T D.y T + 1 Q 5,000,000 80 95 R 8,000,000 60 55 S 15,000,000 20 24 -Refer to Exhibit 5.6.If an equal-weighted index is constructed on Day T with $10,000 in each stock,what is the percentage change in wealth for this index on Day T + 1? Assume a base index value of 100 on Day T.

(Multiple Choice)

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Question 13

Exhibit 5.2 Use the Information Below for the Following Problem(S) \nobreakspace Stock Price \# Shares Jan. 13,2005 20 40 30 1000 2000 100 Jan. 14,2005 25 42 18 1000 2000 2000 Jan. 15,2005 27 45 8 100 2000 2000 Jan. 16,2005 20 40 10 3000 2000 2000 *2:1 Split on Stock Z after Close on Jan. 13, 2005 **3:1 Split on Stock X after Close on Jan. 15, 2005 The base date for index calculations is January 13, 2005 -Refer to Exhibit 5.2.What is the divisor at the beginning of January 16th?

(Multiple Choice)

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Question 14

There is a high correlation between the Wilshire 5000 index and the alternative NYSE series (S&P 500 and the NYSE),representing the substantial influence of large NYSE stocks on the Wilshire 5000 index.

(True/False)

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Question 15

Exhibit 5.2 Use the Information Below for the Following Problem(S) \nobreakspace Stock Price \# Shares Jan. 13,2005 20 40 30 1000 2000 100 Jan. 14,2005 25 42 18 1000 2000 2000 Jan. 15,2005 27 45 8 100 2000 2000 Jan. 16,2005 20 40 10 3000 2000 2000 *2:1 Split on Stock Z after Close on Jan. 13, 2005 **3:1 Split on Stock X after Close on Jan. 15, 2005 The base date for index calculations is January 13, 2005 -Refer to Exhibit 5.2.Calculate a price weighted average for January 16th.

(Multiple Choice)

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Question 16

An example of a value weighted stock market indicator series is the

(Multiple Choice)

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Question 17

The Dow Jones Industrial Average is a value weighted average.

(True/False)

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Question 18

Exhibit 5.6 Use the Information Below for the Following Problem(S) Price Stack Number of Shares Day T D.y T + 1 Q 5,000,000 80 95 R 8,000,000 60 55 S 15,000,000 20 24 -Refer to Exhibit 5.6.Calculate a value weighted average for Day T + 1.Assume a base index value of 100 on Day T.

(Multiple Choice)

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Question 19

Exhibit 5.5 Use the Information Below for the Following Problem(S) Stack 31-Dec-03 Price 31-Dec-03 Shares 31-Dec-04 Price S1-Dec-04 Shares W \ 75.00 10000 \ 50.00 20000 X \ 150.00 5000 \ 65.00 10000 Y \ 2500 20000 \ 35.00 20000 Z \ 20.00 25000 \ 50.00 25000 Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003. -Refer to Exhibit 5.5.Calculate the price weighted series for Dec 31,2003,prior to the splits.

(Multiple Choice)

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Question 20

Exam 5: Security-Market Indexes

There are no composite series currently available that will measure the performance of all securities (i.e.stocks and bonds)in a given country.

Exhibit 5.4 Use the Information Below for the Following Problem(S) Year \% Price Chinge for stark Index 2000 8.0\% 2001 10.0\% 2002 -14.0\% 2003 20.0\% 2004 -10.0\% -Refer to Exhibit 5.4.Calculate the average annual rate of change for this index for the 5 year period using the geometric mean.

The Dow Jones Industrial Average has been criticized for being blue-chip biased.

Which of the following is not a U.S.investment-grade bond index?

A value weighted index automatically adjusts for stock splits.

An equally weighted indicator series is also known as an unweighted indicator series.

Of the following indices,which includes the most comprehensive list of stocks?

Exhibit 5.3 Use the Information Below for the Following Problem(S) Y ear \% Price Change for CE Industries 2000 10.0\% 2001 12.0\% 2002 10.0\% 2003 11.0\% 2004 6.0\% -Refer to Exhibit 5.3.Calculate the average annual rate of change for GB Industries for the 5 year period using the arithmetic mean.

There is a high correlation between the Wilshire 5000 index and the alternative NYSE series (S&P 500 and the NYSE),representing the substantial influence of large NYSE stocks on the Wilshire 5000 index.

An example of a value weighted stock market indicator series is the

The Dow Jones Industrial Average is a value weighted average.

Exhibit 5.6 Use the Information Below for the Following Problem(S) Price Stack Number of Shares Day T D.y T + 1 Q 5,000,000 80 95 R 8,000,000 60 55 S 15,000,000 20 24 -Refer to Exhibit 5.6.Calculate a value weighted average for Day T + 1.Assume a base index value of 100 on Day T.

An Overview of the Investment Process

The Asset Allocation Decision

The Global Market Investment Decision

Securities Markets: Organization and Operation

Efficient Capital Markets

An Introduction to Portfolio Management

An Introduction to Asset Pricing Models

Multifactor Models of Risk and Return

Analysis of Financial Statements

Security Valuation Principles

Macroanalysis and Microvaluation of the Stock Market

Industry Analysis

Company Analysis and Stock Valuation

Equity Portfolio Management Stragtegies

Technical Analysis

Bond Fundamentals

The Analysis and Valuation of Bonds

Bond Portfolio Management Strategies

An Introduction to Derivative Markets and Securities

Forward and Futures Contracts

Option Contracts

Swap Contracts,convertible Securities,and Other Embedded Derivatives

Professional Money Management, alternative Assets, and Industry Ethics

Evaluation of Portfolio Performance

Investment Return and Risk Analysis Questions

Investment and Retirement Plans

Calculating Covariance and Correlation Coefficient of Assets

Portfolio Variance and Stock Weight Calculations

Portfolio Optimization with Negative Correlation: Finding Minimum Variance and Weight Allocation

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