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) Active trading in markets and competition among securities analysts helps ensure that I. Security prices approach informational efficiency II. Riskier securities are priced to offer higher potential returns IIL Investors are unlikely to be able to consistently find under- or overvalued securities A. I only B, l and 11 only C. II and III only D. I, II, and III 2) Security selection refers to and asset allocation refers to Athe choice of specific assets within each asset class; deciding how much to invest in the market portfolio versus the riskless asset B. the analysis of the value of securities; choosing specific securities within each asset class C. the allocation of the investment portfolio across broad asset classes each asset class; choosing specific securities within each asset class D. choosing specific securities within each asset class; the allocation of the investment portfolio across broad asset classes each asset class; ) In which markets) can a fimm raise funds from? A. primary market C. both primary and second markets D. neither primary market nor second market 4) Here is some price information on Sohu.com. Ask Bid Sohu 84.80 84.67 You have placed a stop-loss order to at $84.75. Will you order be executed? A. Yes C. The order will be executed because it is obligation. D. Not enough information B. No portfolio construction starts with asset allocation. (CFA Question) B. Top-down A. Bottom-up C. Upside-down D. Side-to-side 6) Money rnarket securities are characterized by: I. Maturity less than 1 year II. Safety of the principal investment III. Low rates of return A. I only B. I and II only C, l and Ill only D.LII, and 7) After much investigation, an investor finds that Intel stock is currently underpriced. This is an (CFA Question) example of A. asset allocation C. top-down portfolio management B. security analysis D. passive management 8) After considering current market conditions, an investor decides to place 60% of her funds in equities and the rest in bonds. This is an example of A. asset allocation B. security analysis D. passive management C. top-down portfolio management

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