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1. When the demand for credit rises, interest rates
also rise
stay at the same level
fall
2. What is a commodity?
Company assets
Things used on a daily basis
3. Relationship between the rate of inflation and the prices of commodities is
There is no relation
Strong
Weak
4. Central banks can also directly increase the money supply by:
lower the interests
open new banks
printing money
5. Unsystematic risk
This is the type of risk that is not related to any external (exogenous) factors.
The risk that is related to the decline in the movement of the whole market
The base interest rate of central banks, which serves as a benchmark for all interest rates in the economy
6. Bonds are:
Cash and equivalents investments
Alternative investments
Fixed income investments
7. Before making an investment, the most important and at the same time the most difficult thing is:
To obtain detailed information about the asset that you are about to invest in
To trade small volumes to validate the liquidity of the asset
To secure your investment by insurance policy
8. Alternative investments are:
Hedge Funds, Real Estate, Commodities, Private Equity, Managed Futures
Stocks, Bonds, Mutual Funds, Money Markets
Real Estate, Commodities, Private Equity, Managed Futures
Hedge Funds, Real Estate, Mutual Funds, Money Markets
9. When the number of buyers of the stock decrease the price will
Go up
Stay the same
Go down
10. What is stock market?
Place where you can exchange currencies
Place where you can buy and sell commodities
Place where you can buy and sell shares in a company
11. Public companies are required to report their earnings
three times a year
four times a year
every month
once a year
12. Working Capital is equal to
Accounts receivable / Average revenue
Short-term assets – Short-term liabilities
Net profit/Total revenue
13. Inventory Turnover is equal to
Total Revenue/Inventory
Total Revenue/Assets
Net income/Total assets
14. Quick Ratio is equal to
Current assets/Current Liabilities
(Current assets – Inventory)/Current Liabilities
Cash Flow from operations/Current Liabilities
15. ROE - return on equity is equal to
Net Income/Owner’s Equity
Net income/Total assets
Total Revenue/Inventory
16. Individual asset analysis is part of
Technical analysis
Fundamental analysis
Asset analysis
17. If you buy on $57 and sell on $81 your result is
$24 Gain
$24 Loss
$138 Gain
$138 Loss
18. If the market happens not to have many participants at that exact moment this condition is named
illiquidity
deflation
stagnation
19. Stocks that are reaching a lower price today than yesterday are called
rubbish issues
declining issues
bad issues
20. Key reversals come when XX percent or more of advisors are bullish or bearish. How much is XX?
XX = 80%
XX = 30%
XX = 60%
XX = 40%
21. Pattern that is considered the switching point between uptrends and downtrends is
Double Top (Reversal)
Rising Wedge (Reversal)
Head and Shoulders Top
Double Bottom Reversal
22. Pattern that signaling upcoming trend is
Cup and Handle
Rounding Bottom (Reversal)
Falling Wedge (Reversal)
23. If loss is 30% how much gain you need to recover?
66.7%
42.9%
25.0%
11.1%
24. If loss is 20% how much gain you need to recover?
66.7%
42.9%
25.0%
11.1%
25. When we are selling something which we have not previously bought, that is called
Short
Long
26. When the body of candlestick is white, it means that the closing price was
lower than the opening price
higher than the opening price
27. Arithmetic average is also called
Median
Mode
Mean
28. Net Income + Amortization - Changes in Working Capital - Capital Expenditures =
EBITDA
Free Cash Flow
P/E
29. When was developed Capital Asset Pricing Model
mid-20th century
beginning of 21st century
early 90s
30. We are measuring increasing working capital by
Asset Turnover
Shares Outstanding
Current Ratio
31. When you construct your linear regression plan, the first step is to
State a hypothesis
Relate your statistical findings to the hypothesis. Accept, reject or modify the null hypothesis
Conduct regular back-testing of your model
Transform the data into logarithmic form and test it for multicollinearity
32. A mathematical equation whereby one variable – the dependent variable (e.g. it can be the movement of the price of an asset) is “explained”, or predicted, by one or more “independent” variables (e.g. inflation, consumption, interest rates etc.) is called
Econometric regression
Correlation Analysis
Standard Deviation Analysis
33. The letter in contracts codes for March is
H
F
J
K
34. The letter in contracts codes for October is
X
U
K
V
35. Contract between two parties which grants the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified price on or before a specified date is called
Right
Privilege
Option
36. Key element in gold futures price is
Storage costs
Weather temperature
Petrol price
37. Strategy in which you buy one call and one put with the same expiration date and the same strike price is
Long straddle
Long put straddle
Long option straddle
38. Strategy whereby a trader secures a limited profit potential and a limited loss potential by combining the positions of 4 option contracts.
Butterfly
Straddle
Strangles
39. The most widely used EMA for short-term predictions are
the 10-day and the 20-day EMA
the 12-day and the 26-day EMA
the 13-day and the 29-day EMA
the 14-day and the 21-day EMA
40. Оscillator that essentially puts the current closing price in context of highs and lows of a period of N days in order to determine whether a security has been overbought or oversold is called
Williams Percentage Range
Relative Momentum Index (RMI)
Deviation behaviour index
41. Unexpected (abnormal) returns are unpredictable, random
FALSE
TRUE
42. "Expected return can be predicted, because it’s a function of the risk. "
TRUE
FALSE
43. To help individual investors avoid their behavioral mistakes, thus help them improve their performance is the role of behavioral finance theory
TRUE
FALSE
44. When you have a winning position, until you realize your profit, you have a strong psychological discomfort, due to fear of losing it. This forces you to act too quickly.
FALSE
TRUE
45. In financial markets especially in the stock market both momentum and reversal occur in the same market, in the same stocks, but at different time horizons.
TRUE
FALSE
46. How should we avoid being negatively affected by the anchoring bias?
When the market is approaching to a previous peak or the 52-week high we should double check our analysis.
When the price rises above the previous peak at the same time you will tell fundamental analysis by signal, you should do this analysis more carefully.
Ensure that you are not underreacting to the new information, because of your anchoring bias.
47. Realized return minus expected return is the abnormal return and is unpredictable according to the Standard Finance Theory.
TRUE
FALSE
48. Which one is not anomaly according to Behavioral Bias
Trading volume is higher when the stock market is rising; that is when most investors are overconfident
Overconfidence of investors is one of the reasons, why disagreement leads to excessive trading volume and volatility.
Trading volume diminishes as the stock market is falling, because investors become less confident.
Disagreement of opinion has been found to decrease the trading volume.
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