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1/9/2021 Mid-Term Exam - Security Analysis (Security Analysis Class 2 (10:30A.M.-1:30P.M.
))
Mid-Term Exam - Security Analysis

(Security Analysis Class 2
(10:30A.M.-1:30P.M.))
Answer all.
This number is for students with last names beginning with A to L ONLY,
Using the local currency table, if you have 10,000.00 pesos and you exchanged
it to Malaysian Ringgit then to Australian Dollar then back to pesos, how much
would your money be? Show all your solutions/calculations. *
(10 Points)
NO ANSWER
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1/9/2021 Mid-Term Exam - Security Analysis (Security Analysis Class 2 (10:30A.M.-1:30P.M.))
There are various indices that investors can use to monitor how the stock
market is doing, such as the Dow Jones Trading Average (DJTA) and the D&C
500. *
(2 Points)
True
False
This number is for students with last names beginning with M to Z ONLY, The
current exchange rate for Swedish Krona (SEK) in the Philippines is 5.83733
pesos for every SEK. If you have 20,000.00 pesos, if you exchange it to SEK, then
exchange it to British Pound Sterling in Sweden, then back to pesos. Would you
earn profit? Please show all your solutions. (Show the Direct Rate and Cross
Rate) *
(10 Points)
SOLUTIONS : Direct rate : Ph to SEK = 5. 83733 Cross rate : PH to British pound= 65.341529 Britis
Stock markets, like money (Forex) markets operates 24 hours a day. *

(2 Points)
True
False
The financial market performs the function of price discovery of the different
financial instruments which are traded between the buyers and the sellers on
the financial market. *
(2 Points)
True
False
Such a market involves contracts whose value is based on the market value of
the asset being traded. The futures in the commodities market is an example of:
*
(2 Points)
a. Stock Market
b. Commodities Market
c. Bond market
d. Derivatives Market
e. Philippine Securities Exchange
The standard security may be thought of as a bond promising to pay annually a

fixed number of dollars. The interest rate is the value of the coupon expressed
as a percentage of the retail price. *
(2 Points)
True
False
Analysis of a competitor’s products is not part of Fundamental Analysis. *

(2 Points)
True
False
Bonds and stocks are used by corporations to raise funds for their initial capital
or for expansion of their business rather than loaning out capital from banks. If
the interest rate for loans charged by banks is 10%, it is logical for corporations
to give interest rates to corporate bonds at: *
(2 Points)
a. 1%
b. 6%
c. 9%
d. 11%
e. 12%
f. 0%
f. None of the options
10
Since Forex trades do not take place on a traditional exchange, the fees or
commissions are not the same that you would on another market. *
(2 Points)
True
False
11
Fundamental analysis is good for: *

(2 Points)
Investments where you need a large capital
Investments that cross international boarders (international trading)
Investments that seek dividends
Investments that trade (ex. stock trading)
12
In triangular arbitrage, there is no arbitrage opportunity if the direct rate is

higher than the cross rate. *
(2 Points)
True
False
13
Bonds are: *
(2 Points)
a. the same as stocks since they are both represent equities
b. tradable debt securities
c. investments made by the public
d. financial instruments signifying the ownership of an individual in a corporation
14
Portfolio management manages various securities and creating an investment

objective for individuals with maximum returns at minimum risks. *
(2 Points)
True
False
15
The anti-money laundering act is present all over the world as a consequence of
the: *
(2 Points)
absolute freedom of countries.
the September 11, 2001 attack in the US.
the proliferation of fake bank accounts across countries.
the quest for order among international securities commissions.
16
The difference of Forex Markets and other markets is that: *

(2 Points)
a. It is immune to the anti-money laundering act in every country.
b. The SEC need not interfere with the transactions of it, no matter how large the amount
involved.
c. There are fewer rules.
d. The Bangko Sentral ng Pilipinas exempts it from taxes.
e. No clearing houses and no central bodies that oversee the forex market.
f. A and C.
g. C and E
17
The main difference of a bond and a stock is: *

(2 Points)
a. The stock earns interest and dividends annually
b. The stock is a more transacted security
c. The bond earns fixed interest on a fixed maturity
d. d. The bond can easily be traded or be converted to cash
18
Those in authority (ex. company president, CEO) are the ones prone to white
collar crimes since: *
(2 Points)
a. they have access to the company’s wealth.
b. they have absolute freedom.
c. they control the people handling the funds.
d. they decide at every critical path the company takes.
e. Nobody is overlooking them
f. B and E
g. B and D
19
Money markets operates 24 hours a day, however, stocks and bonds earns 24
hours a day while forex earns only on per transaction basis (spot). *
(2 Points)
True
False
20
This number is for students with last names beginning with M to Z ONLY,
Using the local currency table, if you have 10,000.00 pesos and you exchanged
it to Singaporean Dollar then to Euro then back to pesos, how much would your
money be? Show all your solutions/calculations. *
(10 Points)
If I have 10,000 pesos and I convert it to SGD the amount will be 10,000/36.331626 I will get 275.242
21
This number is for students with last names beginning with A to L ONLY, If you
have 20,000.00 pesos, if you exchange it to US Dollars, then exchange it to
Indian Rupee in France (Indian Rupee Symbol is INR), then back to pesos.
Would you earn profit? Please show all your solutions (Show the Direct Rate
and Cross Rate). *
(10 Points)
NO ANSWER
22
A total debt:total asset ratio of 1.1 means the company is *

(2 Points)
a. Liquid
b. Solvent
c. Profitable
d. Efficient
e. Has more debts than own money
f. None of the above
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1/9/2021 Mid-Term Exam - Security Analysis (Security Analysis Class 2 (10:30A.M.-1:30P.M.

Mid-Term Exam - Security Analysis

Stock markets, like money (Forex) markets operates 24 hours a day. *

e. Philippine Securities Exchange

The standard security may be thought of as a bond promising to pay annually a

Analysis of a competitor’s products is not part of Fundamental Analysis. *

f. None of the options

Fundamental analysis is good for: *

Investments where you need a large capital

Investments that cross international boarders (international trading)

Investments that seek dividends

Investments that trade (ex. stock trading)

In triangular arbitrage, there is no arbitrage opportunity if the direct rate is

a. the same as stocks since they are both represent equities

b. tradable debt securities

c. investments made by the public

d. financial instruments signifying the ownership of an individual in a corporation

Portfolio management manages various securities and creating an investment

absolute freedom of countries.

the September 11, 2001 attack in the US.

the proliferation of fake bank accounts across countries.

the quest for order among international securities commissions.

The difference of Forex Markets and other markets is that: *

a. It is immune to the anti-money laundering act in every country.

c. There are fewer rules.

d. The Bangko Sentral ng Pilipinas exempts it from taxes.

The main difference of a bond and a stock is: *

a. The stock earns interest and dividends annually

b. The stock is a more transacted security

c. The bond earns fixed interest on a fixed maturity

d. d. The bond can easily be traded or be converted to cash

a. they have access to the company’s wealth.

b. they have absolute freedom.

c. they control the people handling the funds.

d. they decide at every critical path the company takes.

e. Nobody is overlooking them

A total debt:total asset ratio of 1.1 means the company is *

e. Has more debts than own money

f. None of the above

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