A company's Market Value Added equates to the market assessment of the present value of the company's future:
dividend distributions
economic value added
capital costs
gross profits
If the real annual returns of a UK equity investment are normally distributed around the mean return of 8% with a standard deviation of 4.5% approximately two-thirds of the returns recorded will be within what range?
-5.5% and 21.5%
-1% and 17%
3.5% and 12.5%
5.75% and 10.25%
When considering the money supply, money is accurately described as anything that is generally:
convertible to sterling currency
acceptable as a means of settling a debt
sustainable in value over a defined period
tradable and held outside of a bank or building society deposit
Which of the following is a fiscal policy used to stimulate the economy?
Raising interest rates
Cutting interest rates
Raising personal taxes
Cutting personal taxes
Two sets of data are positively correlated. If one set of data rises in value, what will happen to the other set?
Rises
Falls
No change
Rises to begin with then falls
What differentiates Gross Domestic Product (GDP) and Gross National Product (GNP)?
A Indirect taxes, depreciation and net exports
Indirect taxes and depreciation
Depreciation and property income
Net property income
A function of the Monetary Policy Committee is to:
attempt to control inflation by setting the base rate
intervene in the financial markets to control money supply
maintain confidence in the UK financial system
promote public understanding of inflation
The demand curve for a particular product will be horizontal where the supplying firm operates in:
a perfect competitive market
a monopolistic market
a sector generating excessive profits
a sector generating minimal profits
The annual return of a portfolio in each of the last six years has been 8.2%, 3.6%, 5.1%, 2.1%, 9.4% and 4.7%. What is the arithmetic mean return?
4.2%
4.9%
5.5%
5.8%
A company's p/e ratio recently changed from 12 to 15. This normally indicates that:
the share value has fallen
growth expectations have improved
dividend levels have become less stable
the relevant market sector is in decline
Which of the following is MOST LIKELY to be a factor causing market movement?
Sentiment
Supply and demand
Economic and political strategy
Investor psychology
The Liquidity (Acid Test) ratio measures a company's ability to:
increase its current assets
meet its current liabilities
increase its inventory turnover
pay its non-current liabilities
In a two-stock portfolio which of the following correlations would normally offer the greatest level of diversification?
0.8
0.6
-0.4
-0.7
In technical analysis, the term, 'primary movement' refers to which of the following?
Short-term share price trend
Long-term share price trend
Short-term dividend policy
Long-term dividend policy
The difference between a nominal rate of return and a real rate of return relates solely to the effects of
taxation
charges
inflation
compounding
Which of the following is NOT counted as part of the Current Account Balance?
Imported and exported goods
Dividends on UK holdings of overseas assets
Long-term capital flows
Interest on UK holdings of overseas assets
If $2,200 is invested for four years with interest at the rate of 6% p.a., compounded half-yearly, what will be the value at the end of this period?
$2,696.55
$2,777.45
$2,786.89
$2,860.77