Finance 261 Mock Test
Version 1
FINANCE 261
FINANCE 261 Test Answer Sheet
Name: __________________________________________ Student ID Number:_______________________________
Please use CAPITAL LETTERS when writing your answers.
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Version 1
FINANCE 261
THE UNIVERSITY OF AUCKLAND Department of Accounting and Finance
FINANCE 261 Introduction to Investments
MID-SEMESTER TEST Semester 1 - 2013
INSTRUCTIONS Time allowed: 60 minutes (includes reading time) Total Marks: 20
a. b. c. d. e. f.
Answer ALL questions. There are 20 questions each worth 1 mark. All questions carry equal marks. Formulae are included in Appendix 1. Calculators are permitted. Detach the answer sheet and fill in YOUR NAME and ID number Ensure that you hand in the answer sheet before you leave the room
2
Version 1 Question 1
FINANCE 261
Compared to other types of marketable securities, money market securities are characterized by ________. I. maturity less than one year II. low risk III. low rates of return A. I only B. I and II only C. I and III only D. I, II and III D Question 2 A T-bill quote sheet has 90-day US T-bill quotes with a 4.92 bid and a 4.86 ask. If the bill has a $10,000 face value an investor could buy this bill for A. $10,000.00 B. $9,878.50 C. $9,877.00 D. $9,880.16
B Investor can buy at the ask price. 10,000 × (1 – 0.0486 × 90 / 360) = 9,878.50
Question 3 The Hydro Index is a price weighted stock index based on the 5 largest boat manufacturers in the nation. The stock prices for the five stocks are $10, $20, $80, $50 and $40. The price of the last stock was just split 2 for 1 and the stock price was halved from $40 to $20 as a result. Initially the divisor was set at 5 before the stock split. What is the new divisor for a price weighted index? A. 5.00 B. 4.85 C. 4.50 D. 4.75
FINANCE 261
FINANCE 261 Test Answer Sheet
Name: __________________________________________ Student ID Number:_______________________________
Please use CAPITAL LETTERS when writing your answers.
Question Answer Question Answer Question Answer
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Question Answer
16
17
18
19
20
1
Version 1
FINANCE 261
THE UNIVERSITY OF AUCKLAND Department of Accounting and Finance
FINANCE 261 Introduction to Investments
MID-SEMESTER TEST Semester 1 - 2013
INSTRUCTIONS Time allowed: 60 minutes (includes reading time) Total Marks: 20
a. b. c. d. e. f.
Answer ALL questions. There are 20 questions each worth 1 mark. All questions carry equal marks. Formulae are included in Appendix 1. Calculators are permitted. Detach the answer sheet and fill in YOUR NAME and ID number Ensure that you hand in the answer sheet before you leave the room
2
Version 1 Question 1
FINANCE 261
Compared to other types of marketable securities, money market securities are characterized by ________. I. maturity less than one year II. low risk III. low rates of return A. I only B. I and II only C. I and III only D. I, II and III D Question 2 A T-bill quote sheet has 90-day US T-bill quotes with a 4.92 bid and a 4.86 ask. If the bill has a $10,000 face value an investor could buy this bill for A. $10,000.00 B. $9,878.50 C. $9,877.00 D. $9,880.16
B Investor can buy at the ask price. 10,000 × (1 – 0.0486 × 90 / 360) = 9,878.50
Question 3 The Hydro Index is a price weighted stock index based on the 5 largest boat manufacturers in the nation. The stock prices for the five stocks are $10, $20, $80, $50 and $40. The price of the last stock was just split 2 for 1 and the stock price was halved from $40 to $20 as a result. Initially the divisor was set at 5 before the stock split. What is the new divisor for a price weighted index? A. 5.00 B. 4.85 C. 4.50 D. 4.75