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Dashboard / My courses / INV2601-22-S1 / INV2601 Welcome Message / Assessment 1
Started on Tuesday, 5 April 2022, 10:09 PM
State Finished
Completed on Tuesday, 5 April 2022, 11:04 PM
Time taken 55 mins 14 secs
Marks 14.00/20.00
Grade 70.00 out of 100.00
Question 1
Incorrect
Mark 0.00 out of 1.00
Which investment do these characteristics belong to?
a. It is illiquid thus may not be able to redeem at any time.
b. There is usually a lock-in period to prevent aborting any strategy.
c. There is a private pool of investment capital that is limited to the partners.
d. It is managed by a general partner who earns fees based only on investors’ profits, not losses.
a. Unit trusts
b.
Hedge funds
c. Investment trusts
d.
Participation bonds schemes
Your answer is incorrect.
The correct answer is:
Hedge funds
,Question 2
Correct
Mark 1.00 out of 1.00
MENU
Which transaction involves the sale of shares the investor does not own with the intention of buying them back at a later stage at a lower
Dashboard / My courses / INV2601-22-S1 / INV2601 Welcome Message / Assessment 1
price?
a.
Market orders
b. Limit orders
c.
Short sales
d. Margin transactions
Your answer is correct.
The correct answer is:
Short sales
Question 3
Incorrect
Mark 0.00 out of 1.00
The .....(i)..... decision is made by an investor to be on the capital market line (CML) efficient frontier as he initially decides to invest in the
market portfolio; while the .....(ii)..... decision is made by the investor when he either borrows or lends to attain his preference on the CML.
a.
investment asset allocation
b. financing investment
c.
investment financing
d. asset allocation
financing
Your answer is incorrect.
The correct answer is:
investment financing
, Question 4
Correct
Mark 1.00 out of 1.00
MENU
Global Limited expects its share price to rise from R100 to R110 over the next year. The beta of Global Limited is 1.5, the return on the
Dashboard
market is 13%/ and
My courses / INV2601-22-S1
the risk-free rate of return is/ 9%.
INV2601 Welcome
Calculate Message
the required rate/ofAssessment
return using1CAPM and determine whether you will
purchase the share.
a.
10% buy
b. 10% sell
c.
15% buy
d. 15%
sell
Your answer is correct.
The correct answer is:
15% sell
Question 5
Correct
Mark 1.00 out of 1.00
An investment costs R13 530 at the beginning of the investment period, after 5 years it is worth R18 345. Calculate the annual HPY of this
investment.
a.
4.58%
b. 6.28%
c.
16.09%
d. 35.59%
Your answer is correct.
The correct answer is:
6.28%
Dashboard / My courses / INV2601-22-S1 / INV2601 Welcome Message / Assessment 1
Started on Tuesday, 5 April 2022, 10:09 PM
State Finished
Completed on Tuesday, 5 April 2022, 11:04 PM
Time taken 55 mins 14 secs
Marks 14.00/20.00
Grade 70.00 out of 100.00
Question 1
Incorrect
Mark 0.00 out of 1.00
Which investment do these characteristics belong to?
a. It is illiquid thus may not be able to redeem at any time.
b. There is usually a lock-in period to prevent aborting any strategy.
c. There is a private pool of investment capital that is limited to the partners.
d. It is managed by a general partner who earns fees based only on investors’ profits, not losses.
a. Unit trusts
b.
Hedge funds
c. Investment trusts
d.
Participation bonds schemes
Your answer is incorrect.
The correct answer is:
Hedge funds
,Question 2
Correct
Mark 1.00 out of 1.00
MENU
Which transaction involves the sale of shares the investor does not own with the intention of buying them back at a later stage at a lower
Dashboard / My courses / INV2601-22-S1 / INV2601 Welcome Message / Assessment 1
price?
a.
Market orders
b. Limit orders
c.
Short sales
d. Margin transactions
Your answer is correct.
The correct answer is:
Short sales
Question 3
Incorrect
Mark 0.00 out of 1.00
The .....(i)..... decision is made by an investor to be on the capital market line (CML) efficient frontier as he initially decides to invest in the
market portfolio; while the .....(ii)..... decision is made by the investor when he either borrows or lends to attain his preference on the CML.
a.
investment asset allocation
b. financing investment
c.
investment financing
d. asset allocation
financing
Your answer is incorrect.
The correct answer is:
investment financing
, Question 4
Correct
Mark 1.00 out of 1.00
MENU
Global Limited expects its share price to rise from R100 to R110 over the next year. The beta of Global Limited is 1.5, the return on the
Dashboard
market is 13%/ and
My courses / INV2601-22-S1
the risk-free rate of return is/ 9%.
INV2601 Welcome
Calculate Message
the required rate/ofAssessment
return using1CAPM and determine whether you will
purchase the share.
a.
10% buy
b. 10% sell
c.
15% buy
d. 15%
sell
Your answer is correct.
The correct answer is:
15% sell
Question 5
Correct
Mark 1.00 out of 1.00
An investment costs R13 530 at the beginning of the investment period, after 5 years it is worth R18 345. Calculate the annual HPY of this
investment.
a.
4.58%
b. 6.28%
c.
16.09%
d. 35.59%
Your answer is correct.
The correct answer is:
6.28%
