Quiz 1
This is not of critical interest to a finance professional
What is Historical Cost
The success of any given financial intermediation depends on these
Level, timing and risk
What is discounting and compounding
Largest sector of the U.S. economy by market capitalization
What is the technology sector
Where you look at first to determine the risk of a stock you were thinking of investing in
What is beta?
The efficiency with which an asset can be converted into another asset
What is liquidity
The claims that stockholders and bondholders have to the cashflows of the corporation, respectively
The example given in class about saving money for a child after its birth had to do with this type of calculation
The types of bonds the Marshall Plan used to raise funds to rebuild Europe
Gold bonds
These are the two public stock exchanges
What are the NASDAQ and the NYSE
These types of business entities cannot legally issue stock
Partnership, sole proprietorship, and LLC
The market in which a typical investor buys and sells stock
What is the secondary market
High supply of crude oil
These terms are risk-free rates
the real rate and the expected inflation premium
You buy a stock at __ and sell at __
What is ask and bid of a stock
Finance is a sub-discipline
What is economics
What are restricted stocks
Calculating loan payments is an application of this
Present value of an annuity
30-year corporate bond has this kind of premium
High maturity premium
This account measures market volatility
What is the VIX
The cost of the best foregone alternative
What is opportunity cost
Large-scale movement of funds from riskier securities to safer securities
What is flight to quality
An agreed-upon price for future delivery of a good or service
What is a forward
This graph scoops slightly down and then up continuously until time to maturity
What does the yield curve for a U.S. Treasury bond look like?
Capital gain