UTA FINA 3315 INVESTMENTS FINAL
EXAM QUESTIONS AND ANSWERS 100%
PASS 2026/2027
Which of the following is not a weighting scheme commonly used in creating equity market
indexes?
Price-weighted
Value-weighted
Industry-weighted - ANS Industry-weighted
A stock's beta value is a measure of
A.
systematic risk.
B.
total risk.
C.
interest rate risk.
D.
diversifiable risk. - ANS systematic risk.
@2026 ALLRIGHTS RESERVED 1
,Cash dividends are taxed at the same rate as ordinary income.
True
False - ANS False
To calculate the interest rate or growth rate using a spreadsheet or financial calculator, the
present value and the future value most have opposite signs.
True
False - ANS True
Systematic risks
A.
can be eliminated by investing in a variety of economic sectors.
B.
result from random firm−specific events.
C.
are unique to certain types of investment.
D.
are forces that affect all investment categories. - ANS are forces that affect all investment
categories.
Both modern portfolio theory and traditional portfolio management result in diversified
portfolios, but they take different approaches to diversification.
@2026 ALLRIGHTS RESERVED 2
,True
False - ANS True
A sell signal is indicated by a security's price
A.
running parallel to the moving average.
B.
rising above the moving average.
C.
falling below the moving average.
D.
equaling the moving average. - ANS falling below the moving average.
The stock valuation process reflects a firm's:
A.
past dividends and capital gains.
B.
historic earnings record.
C.
historic dividend growth rate.
D.
expected future dividends and capital gains. - ANS expected future dividends and capital
gains.
@2026 ALLRIGHTS RESERVED 3
, The primary market tends to be more active when
A.
the economy is slowing and stock prices are falling.
B.
early in the calendar year.
C.
interest rates are rising.
D.
the economy is expanding and stock prices are rising. - ANS the economy is expanding and
stock prices are rising.
The returns on the stock of DEF and GHI companies over a 4 year period are shown below:
DEF: 8%, 12%, -5%, 6%
GHI: 11%, 9%, -9%, 13%
From this limited data you should conclude that returns on
A.
DEF and GHI are uncorrelated.
B.
DEF and GHI are negatively correlated.
C.
DEF and GHI are perfectly positively correlated.
D.
@2026 ALLRIGHTS RESERVED 4
EXAM QUESTIONS AND ANSWERS 100%
PASS 2026/2027
Which of the following is not a weighting scheme commonly used in creating equity market
indexes?
Price-weighted
Value-weighted
Industry-weighted - ANS Industry-weighted
A stock's beta value is a measure of
A.
systematic risk.
B.
total risk.
C.
interest rate risk.
D.
diversifiable risk. - ANS systematic risk.
@2026 ALLRIGHTS RESERVED 1
,Cash dividends are taxed at the same rate as ordinary income.
True
False - ANS False
To calculate the interest rate or growth rate using a spreadsheet or financial calculator, the
present value and the future value most have opposite signs.
True
False - ANS True
Systematic risks
A.
can be eliminated by investing in a variety of economic sectors.
B.
result from random firm−specific events.
C.
are unique to certain types of investment.
D.
are forces that affect all investment categories. - ANS are forces that affect all investment
categories.
Both modern portfolio theory and traditional portfolio management result in diversified
portfolios, but they take different approaches to diversification.
@2026 ALLRIGHTS RESERVED 2
,True
False - ANS True
A sell signal is indicated by a security's price
A.
running parallel to the moving average.
B.
rising above the moving average.
C.
falling below the moving average.
D.
equaling the moving average. - ANS falling below the moving average.
The stock valuation process reflects a firm's:
A.
past dividends and capital gains.
B.
historic earnings record.
C.
historic dividend growth rate.
D.
expected future dividends and capital gains. - ANS expected future dividends and capital
gains.
@2026 ALLRIGHTS RESERVED 3
, The primary market tends to be more active when
A.
the economy is slowing and stock prices are falling.
B.
early in the calendar year.
C.
interest rates are rising.
D.
the economy is expanding and stock prices are rising. - ANS the economy is expanding and
stock prices are rising.
The returns on the stock of DEF and GHI companies over a 4 year period are shown below:
DEF: 8%, 12%, -5%, 6%
GHI: 11%, 9%, -9%, 13%
From this limited data you should conclude that returns on
A.
DEF and GHI are uncorrelated.
B.
DEF and GHI are negatively correlated.
C.
DEF and GHI are perfectly positively correlated.
D.
@2026 ALLRIGHTS RESERVED 4
