DON JOSE ECLEO MEMORIAL FOUNDATION COLLEGE OF SCIENCE AND TECHNOLOGY

Justiniana, Edera, San Jose Dinagat Islands

Prelim Exam –Investment and Portfolio Management

Total Items: 85

I. Identification 2 points each

1) An individual who purchases small amounts of securities for themselves, as opposed to an institutional investor.
2) Considered as a root of happiness.
3) It is the employment of funds with the aim of getting return on it. Means the use of money in the hope of
making more money.
4) Primarily concerned with the sources of money
5) Traditionally concerned with uses or budgeting of money.
6) Investors do not want to worry about the day to day movements of markets and their present and future
financial security.
7) Investors want to protect their financial needs against financial risks at all times.
8) Is an activity, quite contrary to its literal meaning, in which a person assumes high risks, often without regard for
the safety of their invested principal, to achieve large capital gains.
9) The person who speculates
10) National Stock Exchange of the Philippines.
11) A place where stocks are bought and sold.
12) Is an increase in the market price of your stock over time brought about by an increase in its potential value and
the demand to buy its shares.
13) Filipino term of Philippine Stock Exchange.
14-15. PSE is from the merger of these 2 entities.

I. Enumeration 2 points each

1-4. Give the 4 types of investments.
5-6. Give the two concepts of Investment.
7-11 Objectives of investors
12-15 The 4 Golden Rules
16-18. Give at least 3 of the 8 constituent indices of PSE.
19-20. Give at least 2 companies listed in PSE.

I. Essay 5 points each

1) Why people invest and what they want from their investments?
2) What are stocks?
3) Explain this quote, “Do not put all your eggs in one basket.”

Prepared by:
HONEYZEL P. ONTOLAN
Instructor
 DON JOSE ECLEO MEMORIAL FOUNDATION COLLEGE OF SCIENCE AND TECHNOLOGY
Justiniana, Edera, San Jose Dinagat Islands
Prelim Exam –Investment and Portfolio Management

ANSWER KEY

I. Identification 2 points each

1. Retail/small investor
2. Money
3. Investment
4. Financial decisions
5. Investment decisions
6. Peace of mind
7. Financial security
8. Speculation
9. Speculator
10. Philippine Stock Exchange, Inc.
11. Stock Market
12. Capital or price appreciation
13. Pamilihang Sapi ng Pilipinas
14. Manila Stock Exchange
15. Makati Stock Exchange

I. Enumeration 2 points each

1. Stocks/Investment Funds/Insurance/Annuities/Retirement/
2. Bank Products
3. Real Estate
4. Insurance
5. Economic Investment
6. Financial Investment
7. Lifestyle
8. Financial security
9. Return
10. Value for money
11. Peace of mind
12. Invest Early
13. Invest Regularly
14. Invest Long Term
15. Invest Using Diversification
16. PSE All Shares Index (ALL)
17. PSE Composite Index (PSEi)
18. PSE Financials Index (FIN)
19. Aboitiz Power corporation
20. Ayala Land

I. Essay 5 points each

1) They invest to earn a return from savings due to their deferred consumption. They want a rate of return that compensates them for the
time, the expected rate of inflation, and the uncertainty of the return.
2) Stocks are share of ownership in a corporation. Once you buy or invest into a stock you now become part owner or a shareholder of that
particular corporation.
3) This is a piece of advice which means that one should not concentrate all efforts and resources in one area as one could
lose everything. Example: Mr Tan's financial adviser urged him to be careful and not put all his eggs in one basket by
investing all his money on stocks.