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 unweighted index for Dec 31,2003,after the splits.Assume a base index value of 100.The base year is Dec 31,2003.

A) 110.0 B) 200.0 C) 100.0 D) 120.0 E) 150.0 A) 110.0 B) 200.0 C) 100.0 D) 120.0 E) 150.0

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 geometric mean.

A) 9.7800% B) 0.0978% C) 9.0700% D) 0.0970% E) 3.6400% A) 9.7800% B) 0.0978% C) 9.0700% D) 0.0970% E) 3.6400%

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 value weighted index for Dec 31,2003,after the splits.Assume a base index value of 100.The base year is Dec 31,2003.

A) 72.5 B) 81.69 C) 100.0 D) 120.0 E) 121.25 A) 72.5 B) 81.69 C) 100.0 D) 120.0 E) 121.25

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 value weighted index for Jan.14th if the initial index value is 100.

A) 100 B) 102.31 C) 123.07 D) 111.54 E) None of the above A) 100 B) 102.31 C) 123.07 D) 111.54 E) None of the above

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 31,2004.

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

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 value weighted index for Dec 31,2004.Assume a base index value of 100.The base year is Dec 31,2003.

A) 121.25 B) 100.0 C) 81.69 D) 72.5 E) 120.0 A) 121.25 B) 100.0 C) 81.69 D) 72.5 E) 120.0

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 price weighted average for 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 5.7 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.What would be the total percentage change in an equally weighted portfolio of ABC?

A) 13.33% B) 18.67% C) 23.41% D) 26.67% E) 36.83% A) 13.33% B) 18.67% C) 23.41% D) 26.67% E) 36.83%

Exam 5: Security-Market Indexes

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 unweighted index for Dec 31,2003,after the splits.Assume a base index value of 100.The base year is Dec 31,2003.

(Multiple Choice)

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Question 41

What effect does a stock substitution or stock split have on a price-weighted series?

(Multiple Choice)

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Question 42

To solve comparability problems across countries,global equity indexes with consistent sample selection,weighting and computational procedure have been developed.

(True/False)

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Question 43

A bond market index is easier to create than a stock market index because the universe of bonds is much broader than that of stocks.

(True/False)

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Question 44

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 geometric mean.

(Multiple Choice)

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Question 45

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 value weighted index for Dec 31,2003,after the splits.Assume a base index value of 100.The base year is Dec 31,2003.

(Multiple Choice)

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Question 46

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 value weighted index for Jan.14th if the initial index value is 100.

(Multiple Choice)

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Question 47

The NYSE series should have higher rates of return and risk measures than the AMEX and OTC series.

(True/False)

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Question 48

A price-weighted index such as the DJIA is a geometric mean of current stock prices.

(True/False)

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Question 49

The Ryan Treasury Index is an example of a

(Multiple Choice)

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Question 50

A style index created to track ethical funds is known as:

(Multiple Choice)

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Question 51

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 31,2004.

(Multiple Choice)

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Question 52

The Value Line Composite Average is calculated using the ____ of percentage price changes.

(Multiple Choice)

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Question 53

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 value weighted index for Dec 31,2004.Assume a base index value of 100.The base year is Dec 31,2003.

(Multiple Choice)

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Question 54

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 percentage return in the unweighted index (geometric mean)for the period Dec 31,2003 to Dec 31,2004.Assume a base index value of 100.Base year is Dec 31,2003.

(Multiple Choice)

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Question 55

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 price weighted average for Day T.

(Multiple Choice)

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Question 56

In a price weighted average stock market indicator series,the following type of stock has the greatest influence

(Multiple Choice)

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Question 57

Which of the following is not a global equity indicator series?

(Multiple Choice)

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Question 58

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.What would be the total percentage change in an equally weighted portfolio of ABC?

(Multiple Choice)

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Question 59

The most common way to test a portfolio manager's performance is to compare the portfolio return to a benchmark.

(True/False)

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Question 60

Exam 5: Security-Market Indexes

What effect does a stock substitution or stock split have on a price-weighted series?

To solve comparability problems across countries,global equity indexes with consistent sample selection,weighting and computational procedure have been developed.

A bond market index is easier to create than a stock market index because the universe of bonds is much broader than that 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 geometric mean.

The NYSE series should have higher rates of return and risk measures than the AMEX and OTC series.

A price-weighted index such as the DJIA is a geometric mean of current stock prices.

The Ryan Treasury Index is an example of a

A style index created to track ethical funds is known as:

The Value Line Composite Average is calculated using the ____ of percentage price changes.

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 price weighted average for Day T.

In a price weighted average stock market indicator series,the following type of stock has the greatest influence

Which of the following is not a global equity indicator series?

The most common way to test a portfolio manager's performance is to compare the portfolio return to a benchmark.

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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