Free Sample Question
Equilibrium

When the price of an item is “in equilibrium”:

A
Quantity demanded exceeds supply
B
Quantity supplied exceeds demand
C
Quantity demanded equals quantity supplied
D
There is uncertainty as to which direction it will move in
China & HK

Trade and investment cooperation between Mainland China and Hong Kong received a major boost in 2003 with the signing of the:

A
World Trade Agreement
B
Closer Economic Partnership Agreement
C
Tax Information Exchange Agreement
D
Common Reporting Agreement
Rights Issue

Rencoe Ltd has 200,000 shares in issue.  The share price before the rights issue is HKD10.  A 1 for 5 rights issue is announced at a subscription price of HKD8.  What will the theoretical share price move to after the rights issue?

A
HKD8.66
B
HKD9.33
C
HKD9.66
D
HKD10.33
Interest Calculation

What is the annual interest rate of a deposit if total interest of $10,000 is earned from a deposit of $100,000 over a period of 10 years, with no reinvestment of interest earned?

A
1% p.a.
B
5% p.a.
C
10% p.a.
D
11% p.a.
Futures Clearing

Who is able to clear a futures trade through the Derivatives Clearing and Settlement System?

A
All futures exchange participants
B
Futures exchange participants with clearing rights
C
Options trading exchange participants
D
Securities exchange participants
Expected Return

An analyst considers EKJ Ltd’s return profile to be as follows:

 

Return                   Probability

   8%                           20%

   ?                               50%

  18%                          30%

 

If the expected return of EKJ Ltd is 13%, what is the return with a 50% probability?

A
6%
B
8%
C
12%
D
13.5%
CF Advisers

Which ONE of the following is NOT a personal skill required by corporate finance advisers?

A
Strategic problem solving
B
Negotiation skills
C
Ability to work under high pressure
D
Portfolio theory experience