Unsecured negotiable bearer securities that are issued by companies with a full stock market listing are known as:

• A. Treasury Bills
• B. Commercial Paper
• C. Certificates of Deposit
• D. Bills of Exchange

Why might a custom benchmark be required when measuring portfolio performance?

• A. It is easier than using a pre-defined benchmark
• B. To establish the size of the tracking error
• C. So that the portfolio can be measured in absolute terms
• D. The portfolio spans several different asset classes

Which type of investment is associated with providing finance to growing companies with the objective of exiting via a profitable stock market listing?

• A. Convertible bonds
• B. Private equity
• C. Preference shares
• D. Structured products

In normal market circumstances, the yield curve slopes upward. Why is this?

• A. The longer an investor ties up capital, the higher the rate of interest they will demand to compensate themselves for the greater risk and opportunity cost on the capital they have invested
• B. Longer-dated bonds are generally more sensitive to interest rate changes than short-dated bonds because holders are exposed to risk for a longer period
• C. Although bonds are generally less risky than equities, their prices are intrinsically linked to the general level of interest rates and expectations of future changes
• D. As long as the interest being paid on the government bond is near to the interest rate available on the market, there is little risk that the resale value will be significantly different from the purchase price

Which commodity is categorized based on how sweet or sour it is?

• A. Zinc
• B. Natural gas
• C. Coffee
• D. Oil