100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
AAMS Practice Exam Combined Sets Questions & Revised Correct Answers BEST UPDATED!! $17.99   Add to cart

Exam (elaborations)

AAMS Practice Exam Combined Sets Questions & Revised Correct Answers BEST UPDATED!!

 9 views  0 purchase
  • Course
  • AAMS
  • Institution
  • AAMS

AAMS Practice Exam Combined Sets Questions & Revised Correct Answers BEST UPDATED!! If a client has a time horizon of one to five years, in general the most appropriate asset is A) money market mutual funds. B) short-term bonds. C) large-cap common stocks. D) foreign s...

[Show more]

Preview 4 out of 80  pages

  • September 4, 2024
  • 80
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • aams
  • AAMS
  • AAMS
avatar-seller
EWLindy
AAMS Practice Exam Combined
Sets
Questions & Revised Correct
Answers
BEST UPDATED!!



If a client has a time horizon of one to five years, in general the
most appropriate asset is
A)
money market mutual funds.
B)
short-term bonds.
C)
large-cap common stocks.
D)
foreign stocks. - ANSWER B)
short-term bonds.

, Tammy invested $20,000 in a mutual fund 11 years ago. If she
earns 10% compounded annually on this investment, what is
the fund's value?
A)
$56,788
B)
$58,760
C)
$57,062
D)
$55,491 - ANSWER C)
$57,062


Ted plans to invest $3,000 in an IRA for 18 years at the
beginning of each year. He expects to earn 9% compounded
annually on this investment. What will be the value of this
investment under these assumptions?
A)
$135,055
B)
$112,351

,C)
$136,798
D)
$123,904 - ANSWER A)
$135,055


Assume you own XYZ Stock Fund, which returned 14% over the
past five years. During this period, the stock market returned
12%. This fund has a beta of 1.1 and the risk-free rate of return
is 4%. What is the Jensen's alpha for this fund?
A)
2.0%
B)
6.0%
C)
1.2%
D)
9.1% - ANSWER C)
1.2%

, Bob has a $90,000 portfolio of four different stocks. The
distribution of this capital and the expected return of these
stocks are shown below.


% of Portfolio ValueExpected ReturnStock A30%7%Stock
B25%8%Stock C30%9%Stock D15%12%


What is the expected return on Bob's stock portfolio?
A)
8.10%
B)
9.00%
C)
8.60%
D)
8.90% - ANSWER C)
8.60%


Two major risks for preferred stock are
A)
business risk and market risk.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller EWLindy. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $17.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

77254 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$17.99
  • (0)
  Add to cart