Question 1

Emerging markets are typically characterised as:

Accepted Answer

A)  high return 
B)  high risk 
C)  low liquidity 
D)  all of these answers 
A)  high return 
B)  high risk 
C)  low liquidity 
D)  all of these answers

Question 2

Using the information contained in the table,for the AUD/USD exchange rate,what is the ask rate assuming direct rates from a US perspective?

Accepted Answer

A)  $ 1.0060 $ 
B)  $ 1.005 $ 
C)  $ 0.9940 $ 
D)  $ 0.9945 $ 
A)  $ 1.0060 $ 
B)  $ 1.005 $ 
C)  $ 0.9940 $ 
D)  $ 0.9945 $

Question 3

The Emerging Market Database (EMDB)is broadly categorised into four sub groups.Which group consists of organisations that have relied upon the market for finance rather than traditional banking sources?

Accepted Answer

A)  Group 1 
B)  Group 2 
C)  Group 3 
D)  Group 4 
A)  Group 1 
B)  Group 2 
C)  Group 3 
D)  Group 4

Question 4

The sole differentiating factor of emerging markets is that they are markets of developing countries that have experienced rapid change and growth.

Accepted Answer

A) True 
 B)False

Question 5

The international study by Izan,Jalleh and Ong in 1991 suggests that Australian investors can reduce their risk through international investment by what percentage per annum?

Accepted Answer

A)  $ 2 \% $ 
B)  $ 5 \% $ 
C)  $ 8 \% $ 
D)  $ 10 \% $ 
A)  $ 2 \% $ 
B)  $ 5 \% $ 
C)  $ 8 \% $ 
D)  $ 10 \% $

Question 6

Which region of the world has varying levels of market regulation and restrictions on foreign trading throughout its jurisdictions due mainly to local authorities?

Accepted Answer

A)  emerging markets 
B)  markets of New Zealand 
C)  south-east Asian markets 
D)  those that have specific liberalisation 
A)  emerging markets 
B)  markets of New Zealand 
C)  south-east Asian markets 
D)  those that have specific liberalisation

Question 7

Using the information contained in the table,what amount would an investor receive from exchanging 1EUR for AUD?

Accepted Answer

A)  $ 0.5855 $ 
B)  $ 0.5905 $ 
C)  $ 1.6934 $ 
D)  $ 1.7079 $ 
A)  $ 0.5855 $ 
B)  $ 0.5905 $ 
C)  $ 1.6934 $ 
D)  $ 1.7079 $

Question 8

A foreign exchange rate of USD/AUD 0.9925-0.9950 indicates:

Accepted Answer

A)  $\text { that the bank will buy 1USD for AUD0.992s }$ 
B)   $\text { that the bank will sell 1AUD for USDD.9925 }$ 
C)  $\text { that the bank will buy 1USD for AUD } 9950$ 
D)  none of these answers 
A)  $\text { that the bank will buy 1USD for AUD0.992s }$ 
B)   $\text { that the bank will sell 1AUD for USDD.9925 }$ 
C)  $\text { that the bank will buy 1USD for AUD } 9950$ 
D)  none of these answers

Question 9

Australia is different to most other foreign markets in that it uses the direct method of quotation.

Accepted Answer

A) True 
 B)False

Question 10

Primary risks from overseas investment include market risk and .

Accepted Answer

A) information risk 
B) exchange rate risk 
C) political risk 
D) all of these answers 
A) information risk 
B) exchange rate risk 
C) political risk 
D) all of these answers

Question 11

The wholesale rate applies to private investors dealing in A$1 000 000 or more.

Accepted Answer

A) True 
 B)False

Question 12

$\begin{array}{|l|r|} 
\hline& \text { Discrete return (i.e. \% change) } \
\hline \text { Investment value (USD) } & 8 \% \
\hline \text { Exchange rate (AUD/USD) } & 7 \% \
\hline
\end{array}$
-Given the information contained in the table regarding a foreign investment an Australian investor made in the US,what is the discrete Australian dollar (AUD)return over the period?

Accepted Answer

A)  $ 0.00 \% $ 
B)  $ 15.0 \% $ 
C)  $ 20.0 \% $ 
D)  $ 26.7 \% $ 
A)  $ 0.00 \% $ 
B)  $ 15.0 \% $ 
C)  $ 20.0 \% $ 
D)  $ 26.7 \% $

Question 13

It is impossible for a foreign investor to invest in markets with capital restrictions.

Accepted Answer

A) True 
 B)False

Question 14

Which are possible problems of emerging markets?

Accepted Answer

A)  High volatility 
B)  Overheated 
C)  Not enough resources devoted to market 
D)  All of these answers 
A)  High volatility 
B)  Overheated 
C)  Not enough resources devoted to market 
D)  All of these answers

Question 15

$\begin{array}{|l|l|l|}
\hline & \text { Start of period } & \text { End of period } \
\hline \text { Investment value (USD) } & \$ 1000 & \$ 1200 \
\hline \text { Exchange rate (AUD/USD) } & 1.3500 & 1.3500 \
\hline
\end{array}$
-An Australian investor purchases a European-based investment at a price of EUR52.50 when the exchange rate was AUD0.6500/AUD.If the exchange rate when the investment was sold was 0.6400,what must the investor sell the investment for to make a discrete return of 15%?

Accepted Answer

A)  $ \$ 45.57 $ 
B)  $ \$ 51.69 $ 
C)  $ \$ 53.36 $ 
D)  $ \$ 59.43 $ 
A)  $ \$ 45.57 $ 
B)  $ \$ 51.69 $ 
C)  $ \$ 53.36 $ 
D)  $ \$ 59.43 $

Question 16

When investment restrictions apply to a foreign equity market,the most common means of markets entry is through:

Accepted Answer

A)  a closed-end country fund 
B)  an international portfolio 
C)  the foreign exchange market 
D)  a world market fund 
A)  a closed-end country fund 
B)  an international portfolio 
C)  the foreign exchange market 
D)  a world market fund

Question 17

The Euromarket consists of a currency market where:

Accepted Answer

A)  only the Euro is traded 
B)  only Western European currencies are traded 
C)  all European currencies are traded 
D)  the major foreign currencies, including the Australian dollar, are traded 
A)  only the Euro is traded 
B)  only Western European currencies are traded 
C)  all European currencies are traded 
D)  the major foreign currencies, including the Australian dollar, are traded

Question 18

A rate of USD/AUD 0.94 indicates that the 1AUD is worth 0.94USD.

Accepted Answer

A) True 
 B)False

Question 19

A forex rate given in Sydney of USD/AUD 0.9835-0.9965 means that the FX dealer will be willing to buy 1AUD for 0.9835USD.

Accepted Answer

A) True 
 B)False

Question 20

An indirect quotation given in Sydney would involve foreign currencies being expressed in terms of the value of 1 Australian dollar.

Accepted Answer

A) True 
 B)False

Emerging markets are typically characterised as:

Using the information contained in the table,for the AUD/USD exchange rate,what is the ask rate assuming direct rates from a US perspective?

The Emerging Market Database (EMDB)is broadly categorised into four sub groups.Which group consists of organisations that have relied upon the market for finance rather than traditional banking sources?

The sole differentiating factor of emerging markets is that they are markets of developing countries that have experienced rapid change and growth.

The international study by Izan,Jalleh and Ong in 1991 suggests that Australian investors can reduce their risk through international investment by what percentage per annum?

Which region of the world has varying levels of market regulation and restrictions on foreign trading throughout its jurisdictions due mainly to local authorities?

Using the information contained in the table,what amount would an investor receive from exchanging 1EUR for AUD?

A foreign exchange rate of USD/AUD 0.9925-0.9950 indicates:

Australia is different to most other foreign markets in that it uses the direct method of quotation.

Primary risks from overseas investment include market risk and .

The wholesale rate applies to private investors dealing in A$1 000 000 or more.

Discrete return (i.e. \% change) Investment value (USD) 8\% Exchange rate (AUD/USD) 7\% -Given the information contained in the table regarding a foreign investment an Australian investor made in the US,what is the discrete Australian dollar (AUD)return over the period?

It is impossible for a foreign investor to invest in markets with capital restrictions.

Which are possible problems of emerging markets?

When investment restrictions apply to a foreign equity market,the most common means of markets entry is through:

The Euromarket consists of a currency market where:

A rate of USD/AUD 0.94 indicates that the 1AUD is worth 0.94USD.

A forex rate given in Sydney of USD/AUD 0.9835-0.9965 means that the FX dealer will be willing to buy 1AUD for 0.9835USD.

An indirect quotation given in Sydney would involve foreign currencies being expressed in terms of the value of 1 Australian dollar.

The Investment Decision

Australian Financial Markets

Financial Management: Derivative Instruments and Information Sources

Money Market Securities

Bonds

Investor Preferences and Portfolio Concepts

Risky Asset Pricing Models and the Capm

Alternative Risky Asset Pricing Models

Concepts and Applications of Market Efficiency

Equity Valuation Models

Macro- and Industry Analysis of Share Markets

Qualitative Stock Selection

Quantitative Company Analysis

Futures and Forward Contracts

Option Contracts

Advanced Issues in Options

Alternative Investments

Portfolio Management

Performance Evaluation of Managed Funds

Filters

Exam 3: The International Investment Environment

Emerging markets are typically characterised as:

Using the information contained in the table,for the AUD/USD exchange rate,what is the ask rate assuming direct rates from a US perspective?

The Emerging Market Database (EMDB)is broadly categorised into four sub groups.Which group consists of organisations that have relied upon the market for finance rather than traditional banking sources?

The sole differentiating factor of emerging markets is that they are markets of developing countries that have experienced rapid change and growth.

The international study by Izan,Jalleh and Ong in 1991 suggests that Australian investors can reduce their risk through international investment by what percentage per annum?

Which region of the world has varying levels of market regulation and restrictions on foreign trading throughout its jurisdictions due mainly to local authorities?

Using the information contained in the table,what amount would an investor receive from exchanging 1EUR for AUD?

A foreign exchange rate of USD/AUD 0.9925-0.9950 indicates:

Australia is different to most other foreign markets in that it uses the direct method of quotation.

Primary risks from overseas investment include market risk and .

The wholesale rate applies to private investors dealing in A$1 000 000 or more.

Discrete return (i.e. \% change) Investment value (USD) 8\% Exchange rate (AUD/USD) 7\% -Given the information contained in the table regarding a foreign investment an Australian investor made in the US,what is the discrete Australian dollar (AUD)return over the period?

It is impossible for a foreign investor to invest in markets with capital restrictions.

Which are possible problems of emerging markets?

When investment restrictions apply to a foreign equity market,the most common means of markets entry is through:

The Euromarket consists of a currency market where:

A rate of USD/AUD 0.94 indicates that the 1AUD is worth 0.94USD.

A forex rate given in Sydney of USD/AUD 0.9835-0.9965 means that the FX dealer will be willing to buy 1AUD for 0.9835USD.

An indirect quotation given in Sydney would involve foreign currencies being expressed in terms of the value of 1 Australian dollar.

The Investment Decision

Australian Financial Markets

Financial Management: Derivative Instruments and Information Sources

Money Market Securities

Bonds

Investor Preferences and Portfolio Concepts

Risky Asset Pricing Models and the Capm

Alternative Risky Asset Pricing Models

Concepts and Applications of Market Efficiency

Equity Valuation Models

Macro- and Industry Analysis of Share Markets

Qualitative Stock Selection

Quantitative Company Analysis

Futures and Forward Contracts

Option Contracts

Advanced Issues in Options

Alternative Investments

Portfolio Management

Performance Evaluation of Managed Funds

Filters