Choose the best answer to the following questions. Good luck!
7500, 4500, 3000
4000, 9000, 1000
7500, 7500, 0
3000, 7500, 4500
18
21
25
35
Investor's Experience
Time Horizon of Investment
Income
Age
Both of these factors
Alexa will retire in 2 years
Alexa wants to save enough money to buy a house
Neither of these factors
Eating steak everyday
Purchasing an affordable house to live in
Replacing a broken phone
Purchasing a second hand car
On January 25, Andrea invested in a 90-day T-Bill which generated around 2% return to counter the effects of inflation.
Andrea bought land in BGC 3 years ago, and was very happy to see that the price of the land increased by around P2M from the date of purchase.
Andrea is currently investing in bonds with average yields of around 8% annually.
Andrea bought 100 shares of JFC (stock) at the price of P243 per share. The current stock price of JFC is P265.
10.00
5.00
9.09
4.88
Php1,020.10, Php1,040.60
Php1,020.00, Php1,040.00
Php1,020.00, Php1,040.40
Php1,020.10, Php1,040.00
Php1,020.00, Php1,040.40
Php1,020.10, Php1,040.60
Php1,020.00, Php1,040.00
Php1,020.10, Php1,040.00
Greece, whose credit ratings last updated by S&P to be BB- with positive outlook, BB with positive outlook for Fitch’s and B1 with stable outlook for Moody’s
Denmark, whose credit rating remained at AAA for S&P and Fitch, and at Aaa for Moody’s, all with a stable outlook
USA, whose credit rating was last downgraded by S&P to AA+ from AAA last 2011 due to concerns of budget deficits
Philippines, whose credit rating was last updated by S&P to BBB+ with negative outlook last April 2019, and last updated by Fitch to BBB with positive outlook last February 2020
Philippines, whose credit rating was last updated by S&P to BBB+ with negative outlook last April 2019, and last updated by Fitch to BBB with positive outlook last February 2020
Denmark, whose credit rating remained at AAA for S&P and Fitch, and at Aaa for Moody’s, all with a stable outlook
USA, whose credit rating was last downgraded by S&P to AA+ from AAA last 2011 due to concerns of budget deficits
Greece, whose credit ratings last updated by S&P to be BB- with positive outlook, BB with positive outlook for Fitch’s and B1 with stable outlook for Moody’s
No; The price will decrease
Yes; The price will not change
Yes; The price will increase
No, the price will increase
A set of assets with returns that are consistently uncorrelated or has near zero correlation.
A set of assets that are consistently uncorrelated or has near zero correlation.
A set of assets with returns that are negatively correlated.
A set of assets that are negatively correlated.
Risk aversion of most investors in a market causes riskier securities to have higher expected returns.
An asset held as part of a portfolio is generally riskier than the same asset held in isolation.
A bear market is a sound market to invest in as many equities gain value and share prices are generally stable.
The PSEi is composed of a fixed basket of 328 companies as of 2019 which represents the general movement of the Philippine stock market.
To reduce the impact of volatility on the overall purchase
To maximize returns
To reduce the impact of economic inflation
All of the choices are correct
1.09%
0%
10%
0.25%
April 6
April 2
April 7
April 9
She reassessed her risk-profile and found that stocks aren’t suited for her.
A post online suggests a better stock pick.
Stock B’s price doubled. It’s an opportunity to earn a lot
Stock A’s price fell by 15%. It’s best to cut her losses.
He wants to maintain his asset allocation and risk-reward profile.
There is a new fad in investments.
His portfolio is performing just as he planned.
He sees an opportunity in more aggressive investments.
Has a different asset mix than the benchmark it is tracking
Has an incompetent fund manager
Performs better than its peer group
Is a bad investment
Raising government revenue by increasing tax rates
Php300-billion cash injection to the market through bond purchases
BSP lowering the benchmark interest rate
Infrastructure projects like the “Build, Build, Build” Program
Best-case
Worst-case
Base-case
All cases are correct
Roth Individual Retirement Account
Personal Equity & Retirement Account
Personal Equity and Savings Option Fund
PAG-IBIG MP2 SAVINGS
Php450
Php500
Php1
Php25
Ayala Land, Inc.
AllHome Corp.
Fruitas Holdings Inc.
The Philippine Stock Exchange, Inc.
Broker’s Commission reaches a minimum percentage of 0.25% of the gross trade amount when the transaction is worth ₱8000 or more
Broker’s Commission is waived when the transaction is worth at least ₱8000
Stock Transaction Tax reaches its minimum value when transactions are worth at least ₱8000
A Transaction worth at least ₱8000 waives the PSE Transaction Fee
Because actively managed funds can beat the index which requires more work and expertise
Because actively managed funds are guaranteed to have high returns
Because an investor will never lose money in an actively managed fund
Because actively managed funds take on lower market risk
Increase; increase
Increase; decrease
Decrease; increase
Decrease; decrease
Risk of inflation
Risk of interest rate fluctuations
Time value of money
Credit risk
Less than face value
Greater than face value
Equal to face value
Cannot be determined
It takes at least 1 day before you can withdraw money from a mutual fund
The amount you can invest in a mutual fund has to be divisible by the minimum investment amount
Investing in a mutual fund containing stocks A and B, with stock A being more risky, has a lower expected return than investing only in stock A
Mutual funds benefit greatly from the effects of diversification
A portfolio composed of stocks that moves perfectly with the PSEi
A portfolio composed mostly of bond funds with some equity index funds
A portfolio composed of bond funds
A portfolio composed mostly of equity index funds with some bond funds
Correlations impact portfolio risk more than individual standard deviations
Diversification provides lower portfolio standard deviations without affecting returns
A portfolio with two stocks from the same industry has a lower standard deviation than a portfolio with two stocks from different industries
Theoretically, all investors should have exactly the same portfolio weights for risky assets
Rights of participants
Investment objective
Portfolio holdings
Related party transactions
11.5%
10.5%
12%
10%
Cannot be determined
Higher
Lower
Equal
Risk reduction
Maximizing returns
Avoidance of investment disasters
Passing the JFA app process
Investor Suitability Form
TIN
All of the choices are correct
None of the other choices are correct
Opening a global account with BDO Nomura
Buying mutual funds that focus on international investments
Investing in multinational corporations
All of the choices are correct
Emergency fund
Stocks
New shoes
Balanced funds
The average historical return
An analyst's forecast
Intuition
Cannot be determined
Point B
Point A
Point M
Point Z
Bubble
GCash
COL
Seedbox
Php1,000
Php4,000
Php12,000
Php100,000
A blank paper where you will write your signature thrice
TIN
All of the choices are correct
None of the other choices are correct
ATRAM Peso Money Market Fund
BPI savings account
Retail treasury bonds
Petron Series A Bonds
It will increase
It will decrease
It will stay the same
Cannot be determined
None of the other choices are correct
Balanced Fund, Bond Fund, Equity Fund
Bond Fund, Equity Fund, Balanced Fund
Balanced Fund, Equity Fund, Dividend Fund
≤1 year
2-5 years
6-10 years
11-30 years
Longer
Lower
Shorter
Higher
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