Orion Series 65 Quick Quiz 10, 11, 12, & 13

A customer purchased 100 shares of SNP at $38. At the time of purchase, the PE ratio was 12. Approximately what are the earnings per share of SNP?

$3.20

An investment of $1,000 made 10 years ago is now worth $4,000. Using the Rule of 72, the approximate compounded annual rate of return is:

14.4%

What is the balance sheet equation?

Assets = Liabilities + Shareholders' Equity

Final approval if the annual operating budget for the United States is given by the:

Congress

The prospectus for a fund states that the minimum initial investment is $500,000. This is most likely what type of fund?

Hedge

When reading the prospectus for a fund, you notice that it states that the fund may make portfolio purchases on margin, take short positions, and use arbitrage techniques. This is most likely what type of fund?

Hedge

Which of the following securities are the most interest-rate sensitive? I. Utility Stocks III. Preferred Stocks

I and III

If the value of the U.S. dollar increases against other currencies, which of the following are TRUE? II. U.S. Exports are less competitive in foreign countries III. Foreign imports into the U.S. are more competitive in U.S. markets.

II and III

Which of the following industries' performance is least likely to track the business cycle?

Pharmaceuticals

All of the following actions will increase the deficit in the U.S. balance of payments EXCEPT:

Purchase by foreigners of U.S. securities

The research department of an investment advisory firm forecasts that the current business cycle should reach it's peak within the next two months. Under such circumstances, which of the following portfolio adjustments would be most suitable for the firm's customers who actively invest in common stocks?

Defensive Stocks

An analyst attempting to determine the extent to which financial leverage is being employed by a company would examine the company's:

Debt-to-equity Ratio

Among the effects of a country devaluating its currency is that there will probably be: I. a credit to that nation's trade account balance III. an increase in that nations's exports

I and III

The common stock of the XYZ Pharmaceutical Corporation, listed on the NYSE, is most likely to be subject to: I. Business Risk IV. Regulatory Risk

I and IV

Over the past five years, an investor's portfolio has shown returns of 6%, 4%, 11%, 10%, and 4%. Which of the following statements is correct? I. The mean return is 7% II. The median return is 6% III. The mode is 4% IV. The range is 7%

I, II, III, and IV

Which of the following statements about diversification are TRUE: II. Diversification is a way to reduce unsystematic risk in a portfolio. III. Diversification is a defensive investment strategy.

II and III

Which of the following is a risk common to all fixed income securities?

Interest Rate Risk

You recently took a trip to Warsaw, Poland and when you received your credit card statement, you noticed that your vodka purchase for 100 Polish Zlotys resulted in a $30 charge on your statement. Based on this exchange rate, each dollar was worth approximately:

3.33 Zlotys

As current interest rates go up, the market price of existing corporate bonds bearing lower interest rates will:

Decrease

The uncertainty resulting from the possibility that the value of an investment will be affected by a change in the law is known as:

Legislative Risk