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AAMS Practice Exam Combined Sets Questions & Revised Correct Answers BEST UPDATED!! $17.99   Add to cart

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AAMS Practice Exam Combined Sets Questions & Revised Correct Answers BEST UPDATED!!

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AAMS Practice Exam Combined Sets Questions & Revised Correct Answers BEST UPDATED!! If a client has a time horizon of one to five years, in general the most appropriate asset is A) money market mutual funds. B) short-term bonds. C) large-cap common stocks. D) foreign s...

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  • September 4, 2024
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  • 2024/2025
  • Exam (elaborations)
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  • aams
  • AAMS
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EWLindy
AAMS Practice Exam Combined
Sets
Questions & Revised Correct
Answers
BEST UPDATED!!



If a client has a time horizon of one to five years, in general the
most appropriate asset is
A)
money market mutual funds.
B)
short-term bonds.
C)
large-cap common stocks.
D)
foreign stocks. - ANSWER B)
short-term bonds.

, Tammy invested $20,000 in a mutual fund 11 years ago. If she
earns 10% compounded annually on this investment, what is
the fund's value?
A)
$56,788
B)
$58,760
C)
$57,062
D)
$55,491 - ANSWER C)
$57,062


Ted plans to invest $3,000 in an IRA for 18 years at the
beginning of each year. He expects to earn 9% compounded
annually on this investment. What will be the value of this
investment under these assumptions?
A)
$135,055
B)
$112,351

,C)
$136,798
D)
$123,904 - ANSWER A)
$135,055


Assume you own XYZ Stock Fund, which returned 14% over the
past five years. During this period, the stock market returned
12%. This fund has a beta of 1.1 and the risk-free rate of return
is 4%. What is the Jensen's alpha for this fund?
A)
2.0%
B)
6.0%
C)
1.2%
D)
9.1% - ANSWER C)
1.2%

, Bob has a $90,000 portfolio of four different stocks. The
distribution of this capital and the expected return of these
stocks are shown below.


% of Portfolio ValueExpected ReturnStock A30%7%Stock
B25%8%Stock C30%9%Stock D15%12%


What is the expected return on Bob's stock portfolio?
A)
8.10%
B)
9.00%
C)
8.60%
D)
8.90% - ANSWER C)
8.60%


Two major risks for preferred stock are
A)
business risk and market risk.

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