Question 1

Stocks of established companies are called:

Options :

A : Growth stocks

B : Blue chip stocks

C : Cyclic stocks

D : Income Stocks

Answer: B

Question 2

Close-end funds are traded on:

Options :

A : A primary market

B : Secondary market

C : Tertiary market

D : Are not traded anywhere

Answer: B

Question 3

Which of the following is NOT the way to make changes in variables that can be considered in the loss reserving process?

Options :

A : selection of loss projection

B : adjustment of historical loss data

C : separate calculation of effect of variables

D : segregation of new data

Answer: D

Question 4

Capital appreciation is an appropriate objective when the investors want the portfolio to grow in real terms over time to meet some future need. Under this strategy, growth mainly occurs through capital gains. This is an

Options :

A : Possessive strategy

B : Risk averse strategy

C : Aggressive strategy

D : Risk acceptance strategy

Answer: C

Question 5

Which of the following is the ratio of share price to stockholder equity as measured on the balance sheet?

Options :

A : Price to book value ratio

B : Price to sales ratio

C : Leverage ratio

D : Debt coverage ratio

Answer: A