Reference no: EM132608785

Question 1: The process of due diligence involves

Select one:

a. providing advice to companies on the raising of new equity.

b. placement of securities to institutional investors.

c. detailed analysis of a firm's financial statements.

d. underwriting of new equity issues by a company.

Question 2: In Australia, listed property trusts dominate over the proportion of unlisted property unit trusts because:

Select one:

a. listed shares can be more advantageous in terms of liquidity.

b. the valuations of buildings are larger than share valuations.

c. mortgages on buildings are larger than companies' valuations.

d. it reflects the liquid nature of properties.

Question 3: The majority of securities owned by unlisted public unit trusts are:

Select one:

a. real physical assets.

b. money market securities.

c. capital market securities.

d. fixed interest trusts.

Question 4: Underwriting is when a/an

Select one:

a. broker or a financial institution guarantees prices on a security issue for a company.

b. broker places new share issues with selected financial institutions.

c. investment bank finds funding for a company.

d. investment bank gives advice to a company about a merger.

Question 5: Superannuation funds that aim at delivering a longer term income stream and capital appreciation by acquiring a diversified asset portfolio across a wider risk spectrum are classified as:

Select one:

a. managed growth funds.

b. capital stable funds.

c. balanced growth funds.

d. capital guaranteed funds.