Exam of Capital Market Investment

2DEAR

SEMESTER 1 EXAMINATIONS /20

SEMESTER 1 EXAMINATION 2014/2015

MSC FINANCE

MSC QUANTITIAVE FINANCE

MSC ENERGY AND ENVIRONMENTAL FINANCE

CAPITAL MARKETS AND INTSTRUMENTS

FIN 41350

Prof. Jerry Coakley

Prof. Ciarán Ó hÓgartaigh

Prof. John Cotter***

SEAT NUMBER

STUDENT NUMBER

Instructions for Invigilators:

MCQ SHEETS ARE REQUIRED FOR THIS EXAM. EXAM PAPERS SHOULD NOT LEAVE

THE EXAM CENTRE.

Instructions for Candidates:

THIS EXAM IS WORTH 30%. YOU SHOULD INDENTIFY THE CORRECT ANSWER AND

COMPLETE THE MCQ SHEET. NEGATIVE MARKING (0.5% PER QUESTION) OCCURS FOR

WRONG ANSWERS. ALL QUESTIONS CARRY EQUAL MARKS. NON-PROGRAMMABLE

CALCULATORS ARE PERMITTED.

Time allowed: 2 hours

1

1. Which of the following is/are not characteristic of a money market instrument?

A. Liquidity

B. Marketability

C. Long maturity

D. Liquidity premium

E. Long maturity and liquidity premium

2. The bid price of a T-bill in the secondary market is

A. the price at which the dealer in T-bills is willing to sell the bill.

B. the price at which the dealer in T-bills is willing to buy the bill.

C. greater than the asked price of the T-bill.

D. the price at which the investor can buy the T-bill.

E. never quoted in the financial press.

3. Based on their relative degrees of risk tolerance

A. investors will hold varying amounts of the risky asset in their portfolios.

B. all investors will have the same portfolio asset allocations.

C. investors will hold varying amounts of the risk-free asset in their portfolios.

D. investors will hold varying amounts of the risky asset and the risk-free asset in

their portfolios.

E. investors would perform vastly different levels of security analysis.

4. Which of the following orders instructs the broker to sell at or above a specified

price?

A. Limit-buy order

B. Discretionary order

C. Limit-sell order

D. Stop-buy order

E. Market order

5. Which of the following orders instructs the broker to sell at or...