Question 116 Which statement about option valuation is least accurate? A) Prior to maturity, out-of-the-money options have no value. B) The value of an option is its time value plus its intrinsic value. C) The maximum loss for the buyer of a call option is the premium paid. D) If the stock price is lower than the strike price at expiration, a put option is worth the difference between the stock price and the strike price.
Question 117 Because of survivorship bias, hedge fund data is likely to: A) overstate returns and overstate risk. B) understate returns and overstate risk. C) understate returns and understate risk. D) overstate returns and understate risk.
Question 118 Which statement is the least accurate analysis of a mutual fund equity investment strategy? A) Global funds managed by U.S. investment companies often contain U.S. stocks. B) Index funds attempt to match the performance of a stock index and usually charge low fees. C) Sector funds may set performance targets drastically different than the overall market’s expected returns. D) Stable value funds invest in long-term fixed-income securities with regular cash flows and a steady interest rate.
Question 119
Which of the following statements is least likely to be a similarity between venture capital and distressed securities investments?
A) They are both likely to have negative cash flows for a significant period of time. B) They are both subject to mispricing. C) Both require a long time horizon to generate expected returns. D) Both require intensive investor participation in the company’s affairs.〕〕
Question 120 A highly risk-averse investor with a long time horizon who worries about inflation is most likely to invest in: A) long-term corporate bonds. B) commingled real estate funds. C) market-neutral hedge funds. D) venture capital limited partnerships.
[此贴子已经被作者于2008-11-7 17:15:02编辑过] | 
发表于 2008-5-10 13:39
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