1. If returns are equal for all time periods under consideration, then one may assume that:
    1. The geometric mean will be less than the arithmetic mean.
    2. The arithmetic mean will be less than the geometric mean.
    3. The geometric and arithmetic means will be equal.
    4. None of the foregoing.
  2. ZZZZ Corp has a beginning value of $473, earned 6.9% for the period and had an ending value of $692. Its holding period return is:
    1. 46.3%
    2. 53.2%
    3. Uses Ending Value of Investment-Beginning Value of Investment +/- Cash flows/Beginning Value of Investment as the calculation formula.
    4. both a & c
    5. both b & c
  3. Risk-adjusted return:
    1. Adjusts the return of an investment for inflation.
    2. Adjusts the return of an investment for market risk.
    3. Adjusts the return of an investment for total risk.
    4. Is commonly referred to as the Sharpe ratio.
    5. b & c
  4. City of Industry's General Obligation bonds pay 5.12%. Calculate the taxable equivalent yield for this bond.
    1. 8%
    2. 7.11%
    3. Cannot be determined without the investor's marginal tax bracket.
    4. None of the above.
  5. A bond is currently priced at 107 with three years to maturity and an annual coupon of 6%. Its yield to maturity would be:
    1. 5.61%
    2. Less than the coupon yield.
    3. The weighted average term to maturity of the cash flows multiplied by the coupon.
    4. Its time weighted return.


Sample Questions 11 - 15

Related Articles
  1. Investing

    The Most Accurate Way To Gauge Returns: The Compound Annual Growth Rate

    The compound annual growth rate, or CAGR for short, represents one of the most accurate ways to calculate and determine returns for individual assets, investment portfolios and anything that ...
  2. Investing

    Comparing Yield To Maturity And The Coupon Rate

    Investors base investing decisions and strategies on yield to maturity more so than coupon rates.
  3. Investing

    How Do I Calculate Yield To Maturity Of A Zero Coupon Bond?

    Yield to maturity is a basic investing concept used by investors to compare bonds of different coupons and times until maturity.
  4. Personal Finance

    ‘Retired’ Too Soon? How to Reenter the Workforce After 50

    Here's what you need to know to survive financially and reenter the workforce when you're over 50 and a layoff has forced you to "retire" too soon.
  5. Investing

    Calculating Annualized Total Return

    The annualized total return is the average return of an investment each year over a given time period.
  6. Investing

    Explaining the Coupon Rate

    Coupon rate is the stated interest rate on a fixed income security.
  7. Investing

    Understanding Bond Prices and Yields

    Understanding this relationship can help an investor in any market.
  8. Investing

    Gauge Portfolio Performance By Measuring Returns

    Calculate returns frequently and accurately to ensure that you're meeting your investing goals.
  9. Investing

    5 Basic Things To Know About Bonds

    Learn these basic terms to breakdown this seemingly complex investment area.
Frequently Asked Questions
  1. Why is social responsibility important to a business?

    Take social responsibility seriously, and your business could benefit from happier, more productive staff members while helping ...
  2. Which socially responsible retailers appeal most to ethical investors?

    Learn why ethical investors have many options in the retail sector, and discover which retail companies are most popular ...
  3. What are Some Examples of Free Market Economies?

    Learn which of the world's economies best resemble free market economies, marked by free trade, low government involvement, ...
  4. Who Decides When to Print money in India?

    Find out the role of the Reserve Bank of India, or RBI, and the amount of authority given to the government. Learn who is ...
Trading Center