Chapter 2

Question 1

Which of the following is not a money market instrument?

A. Treasury bill

B. Commercial paper

C. Preferred stock

D. Bankers’ acceptance

Answer 1

sdf

Question 2

3. When computing the bank discount yield, you would use ____ days in the year.

A. 260

B. 360

C. 365

D. 366

Answer 2

drg

Question 3

To build an indifference curve we can first find the utility of a portfolio with 100% in the risk-free asset, then

Answer 3

dg

Answer 4

E

Question 5

On November 22, 2012, the stock price of WalMart was $69.50 and the retailer stock index was 600.30. On November 25, 2012, the stock price of WalMart was $70.25 and the retailer stock index was 605.20. Consider the ratio of WalMart to the retailer index on November 22 and November 25. WalMart is _______ the retail industry, and technical analysts who follow relative strength would advise _______ the stock.

A. outperforming, buying

B. outperforming, selling

C. underperforming, buying

D. underperforming, selling

E. equally performing, neither buying nor selling

Answer 5

A