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FIN501 INVESTMENT ANALYSIS
PRACTICE 2026 LATEST QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
Which one of the following statements appears to be correct
based on current research?
Overconfidence tends to result in lower returns.
Investors with higher incomes tend to be more risk-adverse than
other investors.
Excessive trading tends to increase returns.
Single, female investors tend to earn lower returns than their male
counterparts. - correct answer -Overconfidence tends to result in
lower returns.
Matilda recently purchased 900 shares of Western Timber stock
for $38 a share. Her broker required a cash payment of $25,650,
plus trading costs, for this purchase. What was the initial margin
requirement? - correct answer -75 percent
Which one of the following is the strategy of earning risk-free
profits by taking advantage of any unusual differences between
cash and futures prices?
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basis recognition
margin calling
mark-to-market
cash-futures arbitrage - correct answer -cash-futures arbitrage
Which of the following are ineffective strategies for producing
excess returns if the market is semi-strong form efficient?
I. graphing past prices searching for patterns
II. watching the daily market movements
III. studying the latest analyst's reports
IV. analyzing a firm's financial statements - correct answer -All
Juan's investment portfolio was valued at $125,640 at the
beginning of the year. During the year, Juan received $603 in
interest income and $298 in dividend income. Juan also sold
shares of stock and realized $1,459 in capital gains. Juan's
portfolio is valued at $142,608 at the end of the year. All income
and realized gains were reinvested. No funds were contributed or
withdrawn during the year. What is the amount of income Juan
got for this year? - correct answer -$2,360
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What is the maximum percentage loss you can incur if you buy a
put option? - correct answer -100%
Abi company is currently trading at $16. There are call and put
options with $15 strike price and 3 month maturity. The company
does not pay dividend. The risk free rate is 2.5 percent. Abi has
40 percent standard deviation. What is the call option premium? -
correct answer -$1.8649
Nedim short sold 2 lots of Biskets stock. The stock price is $80
per share and short margin is 60%. What is the amount of assets
in Nedim's account after the short sell? - correct answer -
$25,600
A portfolio has a total return of 14.5%, a beta of 1.54 and a
standard deviation of 17.6%. If the risk free rate is 4.5% and the
market return is 10.2%, then Treynor's measure of this portfolio's
performance is - correct answer -6.5%
Which form of market efficiency exists if the market is efficient
only in regard to historical information?
FIN501 INVESTMENT ANALYSIS
PRACTICE 2026 LATEST QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
Which one of the following statements appears to be correct
based on current research?
Overconfidence tends to result in lower returns.
Investors with higher incomes tend to be more risk-adverse than
other investors.
Excessive trading tends to increase returns.
Single, female investors tend to earn lower returns than their male
counterparts. - correct answer -Overconfidence tends to result in
lower returns.
Matilda recently purchased 900 shares of Western Timber stock
for $38 a share. Her broker required a cash payment of $25,650,
plus trading costs, for this purchase. What was the initial margin
requirement? - correct answer -75 percent
Which one of the following is the strategy of earning risk-free
profits by taking advantage of any unusual differences between
cash and futures prices?
, Page | 2
basis recognition
margin calling
mark-to-market
cash-futures arbitrage - correct answer -cash-futures arbitrage
Which of the following are ineffective strategies for producing
excess returns if the market is semi-strong form efficient?
I. graphing past prices searching for patterns
II. watching the daily market movements
III. studying the latest analyst's reports
IV. analyzing a firm's financial statements - correct answer -All
Juan's investment portfolio was valued at $125,640 at the
beginning of the year. During the year, Juan received $603 in
interest income and $298 in dividend income. Juan also sold
shares of stock and realized $1,459 in capital gains. Juan's
portfolio is valued at $142,608 at the end of the year. All income
and realized gains were reinvested. No funds were contributed or
withdrawn during the year. What is the amount of income Juan
got for this year? - correct answer -$2,360
, Page | 3
What is the maximum percentage loss you can incur if you buy a
put option? - correct answer -100%
Abi company is currently trading at $16. There are call and put
options with $15 strike price and 3 month maturity. The company
does not pay dividend. The risk free rate is 2.5 percent. Abi has
40 percent standard deviation. What is the call option premium? -
correct answer -$1.8649
Nedim short sold 2 lots of Biskets stock. The stock price is $80
per share and short margin is 60%. What is the amount of assets
in Nedim's account after the short sell? - correct answer -
$25,600
A portfolio has a total return of 14.5%, a beta of 1.54 and a
standard deviation of 17.6%. If the risk free rate is 4.5% and the
market return is 10.2%, then Treynor's measure of this portfolio's
performance is - correct answer -6.5%
Which form of market efficiency exists if the market is efficient
only in regard to historical information?
