SAMPLE QUESTIONS AND ANSWERS
Sample Question 1
Which statements CORRECTLY describe macroeconomics and microeconomics?
I Macroeconomics studies economic aggregates at the overall level of the economy
II Microeconomics studies individual units in determining the trend of production and distribution of goods and services
III Macroeconomics includes studies on the total level of spending in the economy as well as total output of the economy
IV Microeconomics includes studies on how regulations and taxes affect the market
(A) (i) and (ii) only
(B) (iii) and (iv) only
(C) (i), (ii) and (iv) only
(D) All of the above
Sample Question 2
Which of the following statements BEST describe a bond’s duration if all other factors remain constant?
(A) The shorter the duration the higher the interest rate risk of the bond
(B) The longer the duration the lower the volatility of prices of the bond
(C) The higher the duration the higher the default risk of the bond
D) The lower the coupon rate the greater the bond’s duration
Sample Question 3
Which of the following statements is TRUE about a call option on futures contract traded on Bursa Malaysia Derivatives Berhad when the option is exercised?
(A) The holder will receive a short position of the underlying futures contract
(B) The writer will receive a long position of the underlying futures contract
(C) The holder will receive a gain/loss (cash) that equals the difference between the futures settlement price and the exercise price of the option
(D) The writer will receive a loss that equals the difference between the futures settlement price and the exercise price of the option
Sample Question 4
AA Builder Bhd has issued an RM1,000,000 nominal value of ZERO-COUPON bond with a life of 20 years to finance its business project. If the bond is expected to yield 9%, what is the intrinsic value of this bond?
(A) RM178,430.89
(B) RM194,489.67
(C) RM277,058.48
(D) RM555,555.56
Sample Question 5
In fundamental analysis, the top down approach involves performing analysis in which of the following sequences?
(A) Economic analysis, company analysis, industry analysis
(B) Industry analysis company analysis, economic analysis
(C) Economic analysis, industry analysis, company analysis
(D) Industry analysis, economic analysis, company analysis
Answer
Sample Question 1 – D
Sample Question 2 – D
Sample Question 3 – D
Sample Question 4 – A (M1,000,000 / (1.09)20) Sample Question 5 – C