FINC Week 2 Assignment

FINC 340: INVESTMENTS
UNIT # 2_WEEKLY ASSIGNMENT
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Five years ago John paid $24.50 a share for 100 shares of Sunshine Financial Services, Inc..During that time he received 20 equal quarterly dividends of $0.16 a share. Today, the stock is worth $38.00 a share. What’s the Holding Period Return? A. $6.82 B. 68 percent C. 6.2 percent D. 55.1 percent |
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Which of the following instruments are traded in a capital market? A. U.S. government agency securities B. Negotiable bank CDs C. Repurchase agreements D. Commercial paper
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Which of the following can be described as involving direct finance? A. A corporation takes out a loan from a bank B. People buy shares in a mutual fund C. A corporation buys commercial paper issued by another corporation D. An insurance company buys shares of common stock in the over-the-counter market |
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The international money market is called A. The Forex Market B. The Capital Market C. The Money Market D. The Financial Market |
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Which of the following statements about financial markets and securities are true? A. Most common stocks are traded over-the-counter, although the largest corporations usually have their shares traded at organized stock exchanges, such as the New York stock Exchange B. As a corporation gets a share of the broker’s commission, a corporation acquires new funds whenever the securities are sold C. Because of their short terms to maturity, the prices of money market instruments tend not to fluctuate wildly D. Only (A) and (C) of the above are true
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What is the distinction between the money market and the capital market? A. Money markets are for short-term securities (with maturities up to one year). Capital markets are for long-term assets (with maturities over one year.) B. Money markets are for long-term securities (with maturities over one year.) Capital markets are for short-term assets (with maturities up to one year). C. There isn’t a difference between capital and money markets D. The terms capital and money markets are interchangeable because they are both in the financial market |
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Five years ago John paid $24.50 a share for 100 shares of Sunshine Financial Services, Inc. During that time he received 20 equal quarterly dividends of $0.16 a share. Today, the stock is worth $38.00 a share. What’s the Holding Period Return? A. $6.82 B. 68 percent C. 6.2 percent D. 55.1 percent |
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There is a wholesale and a retail foreign exchange market? A. True B. False |

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Solution: FINC Week 2 Assignment