Series 7 Exam Practice Test 10: Portfolio and Securities Analysis

1. Which of the following WOULD NOT be examined by a fundamental analyst?

2. For an investor who is concerned about purchasing power risk, which TWO of the following would be the best recommendations?

I. Common stock

II. Long-term corporate bonds

III. Fixed annuties

IV. Variable annuties

3. An inverted head and shoulder pattern indicates which of the following?

4. Which of the following are systematic risks?

I. Currency risk

II. Purchasing power risk

III. Reinvestment risk

5. ABC common stock has a beta of 1.4, which means

6. Which of the following securities has no reinvestment risk?

7. AylDec Corp. paid a cash dividend to its common stockholders. How would it affect AylDec's balance sheet?

I. The assets would decrease

II. The liabilities would decrease

III. The net worth would decrease

IV. The net worth would remain the same

8. TUV Corporation has announced a $0.50 dividend to holders of record of their common stock. At the time of the announcement and prior to the dividend being paid, what happens to TUV's working capital?

9. ABC Corporation has been trading inbetween $23 and $26 for quite a long period of time. $23 would be considered ABC Corporation's

10. Use the following exhibit to answer this question:

All numbers in the chart above are in millions

What is the working capital?