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LOS b: Compare and contrast major structural features of domestic and global stock indexes, bond indexes, and composite stock-bond indexes.
Q1. Which of the following indexes is a price weighted index?
A) The New York Stock Exchange Index.
B) The Nikkei Dow Index.
C) The Standard and Poor's Index.
Q2. With regard to stock market indexes, it is least likely that:
A) the use of price weighting versus market value weighting produces a downward bias on the index.
B) buying 100 shares of each stock in a price-weighted index will result in a portfolio that tracks the index quite well.
C) a value-weighted index must be adjusted for stock splits but not for dividends.
Q3. Which of the following statements about bond and stock market indexes is least accurate?
A) When a company splits its stock, it loses weight in a price-weighted index.
B) Bond market indexes have been in existence virtually as long as the major stock indexes such as the Dow Jones Industrial Average (DJIA).
C) A small number of very large firms can dominate a value-weighted index.
Q4. Which of the following sets of indexes are price-weighted?
A) Dow Jones World Stock Index and Russell Index.
B) S& 500 Index and Dow Jones Industrial Average.
C) Dow Jones Industrial Average and Nikkei Dow Jones Stock Market Average.
Q5. Which of the following regarding bond market indexes is least accurate?
A) Unlike stocks, bonds lack continuous price trading data.
B) The bond universe is more stable than the stock universe.
C) There are more bond issues than stocks.
Q6. Which of the following is NOT a reason bond market indexes are more difficult to create than stock market indexes?
A) Bond deviations tend to be relatively constant.
B) The universe of bonds is much broader than that of stocks.
C) There is a lack of continuous trade data available for bonds.
Q7. What are the three basic categories of bond indexes?
A) Secured; unsecured; subordinated offerings.
B) Investment grade; high yield; global.
C) Corporate; government; municipal.
[此贴子已经被作者于2009-3-2 13:07:35编辑过] | 
发表于 2009-3-2 13:03
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