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FIN 4670 Midterm QUESTION 1 The three major credit rating agencies are  ,  and 

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FIN 4670 Midterm

QUESTION 1

1. The three major credit rating agencies are  ,  and .

 

QUESTION 2

Which is an independent agency created by Congress to maintain stability and public confidence in the nation's financial system and protects bank depositors against the loss of their insured deposits in the event that the bank or savings association fails.  It's backed by the full faith and credit of the United States government?

 

	I.	SEC
	II.	FDIC
	III.	MLB
	IV.	FINRA

QUESTION 3

Investors should know that there is trade-off between risk and 

	I.	Failures
	II.	Fortune
	III.	Expected Return
	IV.	Outcomes

Question 4 In your own words explain/describe Effecient Frontier?

 

QUESTION 5

What measures the extra return of a portfolio in excess that is predicted by the Capital Asset Pricing Model?

	I.	Alpha
	II.	Beta
	III.	Return
	IV.	Risk

QUESTION 6

Whiich US Bank Regulation was passed in 1927 and amended in 1933 and restricted all banks from opening branches in more than one state and it applied to nationally chartered as well as to State-Chartered banks?

		Douglas Amendment
		McFadden Act
		Bank Holdings Companies Act
		Riegel-Neal Interstate Banking and Branching Efficiency Act

QUESTION 7

 

What are the 4 methods of raising debt or equity?

 

 

QUESTION 8

 

Which type of Life Insurance is also sometimes referred to as temporary life insurance lasts a predetermined number of years.  If the policyholder dies during the life of the policy, the insurance company makes a payment to the specified beneficiaries equal to the face amount of the policy?

	I.	Whole Life
	II.	Variable Life
	III.	Term Life
	IV.	Group Life

QUESTION 9

 

Briefly describe what is an Open-End Mutual Fund and describe the advantages and disadvantages if any?

 

 

QUESTION 10

 

Which fund(s) are traded on an exchange and it's holdings are disclosed twice a day and its share price is close to NAV of underlying investments?

	I.	ETF
	II.	Open-End Fund
	III.	Bonds
	IV.	Annuity