CWM_LEVEL_2 Practice Online

Section A (1 Mark)

We prefer a sure gain from a much larger gain that is very likely but not certain. This makes us close winning positions even if we think that they are likely to get even better.

Section A (1 Mark)

What are the common methods an investors may use to value real estate investments?

Section A (1 Mark)

From the following data calculate the expected rate of return of a portfolio in which A and B has weights equally:

Section A (1 Mark)

A(n)____________________________________________ is where the customer can use the difference between some percentage of the appraised value of their home and the mortgage remaining to secure a loan. This loan can be used to fund a college education, pay for a vacation or pay for home improvements.

Section A (1 Mark)

Convertible bond arbitrage is to event driven as _________ is to corporate restructuring.