Financial Pop Quiz

1) Daniel Smith has a total portfolio value of $2 million. He invests an additional $50,000 just before an uptick in the market and $100,000 just after a market decline. Which of the following methods of performance measurement will NOT reflect Daniel's market timing decisions?

a) Time-weighted performance measurement
b) Money-weighted performance measurement

2) A Reg T call occurs when the Reg T requirement on a particular transaction exceeds the:

a) Debit balance
b) Equity
c) SMA
d) Reg T excess

3) What time horizon and confidence level is required to estimate the regulatory capital charge according to the Basel II Accord?

a) One-year 99.9 percent VaR
b) Ten-day 99.9 percent VaR
c) One-year 99 percent VaR
d) Ten-day 99 percent VaR

4) The PPI is used first and foremost to measure:

a) Production
b) Food and energy
c) Inflation
d) A basket of goods

5) Meredith Gross purchased 100 shares of ABC mutual fund. After six months, Ms. Gross decides to redeem her shares. The redemption is subject to the deferred sales charge on redemption. Which of the following fees or loads will Ms. Gross pay upon redemption of her shares?

a) Maintenance fee
b) Back-end load
c) Exchange fee
d) Front-end load

How did you do? The 760 courses in SS&C's Zoologic Learning Solutions can help you brush up on your financial skills, and learn new ones to take you to the next level in your career. The questions above are taken from the following Zoologic courses:
  • Introduction to Performance Measurement
  • Basic Margin
  • Operational Risk: Quantification and Mitigation
  • Fundamentals of Economic Indicators
  • Fundamentals of Mutual Funds

Each course comes packaged with a large database of test questions so you can assess your level of knowledge before and after taking the course. The courses are also fully accredited with many important industry bodies, such as NASBA (CPE) and CFP. For more information on Zoologic Learning Solutions please download our brochure or request a live demonstration.

Answers: 1-a, 2-c, 3-a, 4-c, 5-b