Primary market refers to the market ____________.
A. that attempts to identify mispriced securities and arbitrage opportunities.
B. in which investors trade already issued securities.
C. where new issues of securities are offered.
D. in which securities with custom-tailored characteristics are designed.
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Asset allocation refers to the _________.
A. allocation of the investment portfolio across broad asset classes
B. analysis of the value of securities
C. choice of specific assets within each asset class
D. none of the answers define asset allocation
An example of a derivative security is _________.
A. a common share of General Motors
B. a call option on Intel stock
C. a Ford bond
D. a U.Treasury bond
In recent years the greatest dollar amount of securitization occurred for which type loan?
A. Home mortgages
B. Credit card debt
C. Automobile loans
D. Equipment leasing
An investment advisor has decided to purchase gold, real estate, stocks, and bonds in equal amounts. This decision reflects which part of the investment process?
Asset allocation
B. Investment analysis
C. Portfolio analysis
D. Security selection