2、Theefficientmarketshypothesissuggeststhat_______. A. activeportfoliomanagementstrategiesarethemostappropriateinvestmentstrategiesB. passiveportfoliomanagementstrategiesarethemostappropriateinvestmentstrategiesC. eitheractiveorpassivestrategiesmaybeappropriate,dependingontheexpecteddirectiono
3、fthemarketD. abottomupapproachisthemostappropriateinvestmentstrategy Difficulty:Easy2.46. IncalculatingtheDowJonesIndustrialAverage,theadjustmentforastocksplitoccurs_________. A. automaticallyB. byadjustingthedivisorC. byadjustingthenumeratorD. byadjustingthemarketvalueweights Difficulty:Med
4、ium3.53. Ownershipofacalloptionentitlestheownertothe__________to__________aspecificstock,onorbeforeaspecificdate,ataspecificprice. A. right,buyB. right,sellC. obligation,buyD. obligation,sell Difficulty:Easy10MBA641MOCKMidtermExaminationKEYSpring20124.73. Youdecidetopurchaseanequalnumberofsh
5、aresofstocksoffirmstocreateaportfolio.Ifyouwishedtoconstructanindextotrackyourportfolioperformanceyourbestmatchforyourportfoliowouldbetoconstructa/an______. A. valueweightedindexB. equalweightedindexC. priceweightedindexD. bondpriceindex Difficulty:Hard 5.74. Ina___________indexchangesinthev
6、alueofthestockwiththegreatestmarketvaluewillmovetheindexvaluethemosteverythingelseequal. A. valueweightedindexB. equalweightedindexC. priceweightedindexD. bondpriceindex Difficulty:Medium6.12. A______dropintheDowJonesIndustrialAveragewouldstoptradingfortheday. A. 10%B. 20%C. 30%D. 40% Diffic
7、ulty:Medium7.23. Ifaninvestorplacesa_________orderthestockwillbesoldifitspricefallstothestipulatedlevel.Ifaninvestorplacesa__________orderthestockwillbeboughtifitspricerisesabovethestipulatedlevel. A. stop-buy;stop-lossB. market;limitC. stop-loss;s
