题目内容

Alex Wu, CFA, a portfolio manager at FAST Funds, calls a friend to join him for dinner. The friend, a financial analyst at Calvin Klein (CK) declines the invitation and explains that she is performing

A. No.
B. Yes,because he traded on material non-public information.
C. Yes,because he allowed his friend to pass on insider information.

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For a decline in interest rate, the price of a callable bond, when compared to an otherwise identical option-free bond, will most likely rise by:

A. Less because the price of the embedded option rises
B. Less because the price of the embedded option falls
C. More because the price of the embedded option rises

The primary difference between the McCallum rule and the Taylor rule is that the McCallum rule follows the:

A. Monetarist feedback rule and adjusts the federal funds rate to target the inflation rate.
B. Keynesian feedback rule and adjusts the growth rate of the monetary base to target the inflation rate.
C. Monetarist feedback rule and adjusts the growth rate of the monetary base to target the inflation rate.

A company is long an interest rate swap with a current market value of $250,000. The company wants to terminate this swap before the expiration date. From a credit risk perspective, which is the least

A. Short an offsetting swap with a third party.
B. Sell the swap to a third party.
C. Agree to terminate the swap and receive its market value from the counterparty.

An analyst compared the performance of a hedge fund index with the performance of a major stock index over the past eight years. She noted that the hedge fund index (created from a database) had a hig

A. Understated Understated
B. Overstated Overstated
C. Overstated Understated

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