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Question 1
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30. are pools of money invested in a portfolio that is fixed for the life of the fund.
Select one:
a. Hedge funds
b. Mutual funds
c. Unit Investment Trusts
d. Exchange Traded Funds (ETFs)
Question 2
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16. Suppose you purchased 1000 shares of AXY common stock at $25 per share with the initial margin and maintenance
margins of 40%, and 30% respectively. How far can the stock price fall before you get a margin call? (Assume the stock pays
no dividend; ignore interest on margin)
Select one:
a. $20.00
b. $22.45
c. $21.43
d. $13.57
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, Question 3
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17. Suppose you purchased 1000 shares of ABC common stock at $19 with an initial margin of 50%. At a maintenance
margin of you received a margin call when the stock price falls to $13.57. What? (Assume the stock pays no
dividend; ignore interest on margin)
Select one:
a. 35%
b. 40%
c. 33%
d. 30%
Question 4
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8. Short sellers find most useful to limit their potential losses
Select one:
a. Limit-sell order
b. Limit-buy order
c. Market order
d. Stop-buy order
Question 5
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25. Which of the following statement is FALSE?
Select one:
a. Since ETFs are offshoots of mutual funds, ETFs can only be bought or sold at the end of the day.
b. Investors can trade ETFs throughout the day
c. ETFs allow investors to trade index portfolios
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