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1. Components of the required rate of return include all the following EXCEPT A. The premium for expected inflation B. The premium for the market risk of the investment C. The real rate of return D. The federal funds rate 2. To implement an investment strategy, several styles might be employed. If preservation of capital is Mr Heng’s strategy, which investment style would he most likely be comfortable with? A. Growth investing B. Momentum investing C. Sector rotation D. Value investing 3. Important dates relative to dividends include A. Record date B. Payment date C. Trade date of transaction D. All of the above 4. The CAPM model requires the following inputs EXCEPT A. A stock’s beta B. Market return C. Required rate of return D. Risk-free rate of return 5. There are several types of cashflow statements. Which one does not belong on the list? A. Cash flow from operation B. Cash flow from sales C. Cash flow from investment activities D. Cash flow from financing activities 6. All of these are market anomalies EXCEPT A. PE effect B. Dividend ellect Small company eflect D Calendar oflect 7. Which one of the following statements is true, all else being equal in terms of issuer and credit rating? A. Lower coupons and shorter maturities exhibit the most price volatility. B. Higher coupons and shorter maturities exhibit the most price volatility. C. Lower coupons and longer maturities exhibit the most price volatility. D. Higher coupons and longer maturities exhibit the most price volatility. 8. Two issues with the same credit rating, same maturity, and same coupon rate have different call features. A. The bond with the nearest call date trades at a higher yield to maturity. B. The bond with the nearest call date trades at a lower yield to maturity. C. The two issues will trade at approximately the same yield to maturity. D. Cannot tell how they trade from the information given.regular premium endowment policy is more suitable for pre-retirement than retirement.