CHAPTER 1: FUNDAMENTAL OF FINANCIAL MARKET

1. Which assets below are financial assets?

A. Physical assets.
B. Tangible assets
C. Real assets.
D. Securities.
2. Which of the following role is NOT belonged to financial market?
A. Distribute at a large scale to the growth of national GDP
B. Tool for macroeconomic stabilization and risk reduction
C. Improve the efficiency of using financial resources
D. Risk sharing and dispersion
3. Type of financial securities that mature in less than a year are classified as
A. Money market securities
B. Capital market securities
C. Medium-term securities
D. Discounted securities
4. Aftermarket is another name of:
A. The secondary market
B. The debt market
C. The securities market
D. The primary market
5. The major difference between debt market instruments and equity market instruments
is
A. The price of issuance
B. The issuers
C. The maturities
D. The market price
6. A primary financial market is one that:
A. Offers financial assets with the highest historical return
B. Offers financial assets with the highest expected return
C. Involves the sale of financial assets for the first time
D. Offers the greatest number of financial assets
7. In the financial market, funds are mobilized from
A. None of the above
B. Both of the above
C. Saver to lender
D. Lender to spender
8. Which of the following is a NOT possible advantage of direct financing?
A. The amount of mobilized capital is large
B. Matching amounts of funds to be borrowed with those to be lent.
C. Reduce cost of the financial intermediary involved.
D. The amount of mobilized capital is limited
9. Which channel is considered as the flow of fund without intermediaries?
A. Direct financing
B. Commercial bank
C. Indirect financing
D. Centralized financing
10. The main distinction between securities sold in the primary market and that in the
secondary market is the:
A. Profitability of the issuing corporation
B. Previous issuance of the securities
C. Price of the securities
D. Riskiness of the securities
11. Through financial market, government and central bank can stabilize and regulate
currency circulation, which help them ..
A. All of the above
B. Stabilize the exchange rate
C. Control inflation
D. Offset budget deficit
12. Liquidity in financial terms is
A. The ease with which an asset can be sold at a published market price
B. To lower the rate of return for an asset
C. The best measure of risk of a financial asset
D. A feature of money only
13. Money market is .... market while capital market is … market.
A. Investment; liquidity
B. Liquidity; financial institution
C. Long-term; short-term
D. Short-term; long-term
14. In the indirect financial channel
A. All of the above
B. Owners of surplus capital either directly or indirectly lend to entities that lack capital
(consumers, investors)
C. Owners of surplus capital directly lend to entities that lack capital (consumers, investors) by
buying financial assets directly issued by lacking capital entities through financial markets.
D. Owners of surplus capital do not directly lend to people who lack capital but through financial
intermediaries such as banks, other financial institutions.
15. New York Stock Exchange is an example of
A. Liquid markets
B. Capital markets
C. Money markets
D. Short-term markets
16. In financial markets, financial instruments with maturity less than one vear is classified
as
A. Capital term instruments
B. Intermediate term instruments
C. Short-term instruments
D. Long-term instruments
CHAPTER 2: MONEY MARKET
1. Expansionary monetary policy can be implemented by:
A. Selling corporate bonds
B. Buying corporate bonds
C. Selling Treasurys to member bank.
D. Buying Treasurys from member bank.
2. When central bank buys securities on Open Market, reserves of commercial banks will...
A. Fluctuate
B. Decrease
C. Remain unchanged
D. Increase
3. Interbank market is the financial system among
A. Investors
B. Individual investors and banks
C. Banks and financial institutions
D. Treasury and commercial banks
4. Discount instruments are issued at
A. A price lower than face value
B. A price higher than face value
C. Face value
D. Face value plus interest
5. Which instrument can be traded on O.M.O?
A. Municipal bond
B. Treasury bond (T-bond)
C. Certificate of Deposit (C.D)
D. All of the above
6. The main feature that distinguishes certificate of deposit (C.D) from term deposit is
A. Short-term
B. Liquidity
C. Issuing Bank
D. Risk
7. Which sentence below is true for the common point of money market instruments?
A. Low risk
B. High liquidity
C. All of the above
D. Short – term
8. The holder of T-bill will not suffer from:
A. Interest risk
B. Inflation risk
C. Reinvestment risk
D. Default risk
9. Which of the financial instruments below is regularly used in international trade?
A. Treasury bill (T-bill)
B. Bankers' Acceptances (B.A)
C. Certificate of Deposit (C.D)
D. Repurchase Agreement (Repo)
10. In the case of high inflation, the Central Bank should:
A. Sell securities on open market
B. Implement outright transaction
C. Buy securities on open market.
D. Implement the expansionary monetary policy
11. The common point of money market instruments is:
A. High liquidity
B. High rate of return
C. Long-term
D. All of the above
12. Risk-free rate (RFR) often is rate of:
A. Commercial Paper (C.P)
B. Treasury bill (T-bill)
C. Repurchase Agreement (Repo)
D. Certificate of Deposit (C.D)
13. Which of the following financial instruments has the lowest risk?
A. Repurchase Agreement (Repo)
B. Certificate of Deposit (C.D)
C. Treasury bill (T-bill)
D. Commercial Paper (C.P)
14. Which of the following works as Yield Instrument?
A. Euro commercial paper
B. Commercial Paper
C. Treasury Bill
D. Repurchase agreement (REPO)
15. Contractionary monetary policy can be implemented below:
A. Buying corporate bonds
B. Selling corporate bonds
C. Selling Treasurys to member bank.
D. Buying Treasurys from member bank.
16. Money market instruments DO NOT include:
A. Stock
B. Treasury Bills
C. Central Bank Bills
D. Certificate of Deposit
17. The main feature that distinguishes certificate of deposit (C.D) from term deposit is
A. Short-term
B. Issuing bank
C. Negotiability
D. Risk
18. The aim of open market operations is to undertake
A. Fiscal policy
B. Both of the above
C. Monetary policy
D. None of the above
19. Interbank market is the financial system among
A. Individual investors and banks
B. Banks and financial institutions
C. Investors
D. Treasury and commercial banks
20. Money market instruments include
A. Treasury Bills, Central Banks Bills, Stocks
B. Treasury Bills, Central Banks Bills, Certificate of Deposit, Stocks
C. Treasury Bills, Central Banks Bills, Certificate of Deposit, Stocks, Repurchase Agreement
D. Treasury Bills, Central Banks Bills, Certificate of Deposit, Repurchase Agreement
21. On which of the following instruments is the rate of return calculated on a ‘discount
basis’?
1. Certificate of deposit
2. Interbank deposits
3. Commercial paper
4. Repurchase agreements
5. Commercial bills
A. 3 and 5
B. 1 and 3
C. 1, 3 and 4
D. 2 and 4
22. What is the main reason of high inflation ?
A. The neglect government who lets their money demand grow too fast
B. The neglect government who lets their money supply grow too fast
C. The neglect government who lets their money demand drop too fast
D. The neglect government who lets their money supply drop too fast
 CHAPTER 3: EQUITY MARKET
1. … is an investor who is willing to take on additional risk for an investment that has a
relatively low additional expended return in exchange for that risk.
A. Risk lover
B. Institutional investor
C. Risk-averse investor
D. Risk neutral
E. Risk seeker ???
2. … may be turned into ordinary shares in the issuer company at a future date
A. Convertible preference share
B. Cumulative preference share
C. Participating preference share
D. Redeemable preference share
3. In case of stock dividend, which items will rise?
A. Cash
B. Number of outstanding shares
C. Proportion of share holder
D. Shareholders’ equity
4. What is the face value of an ordinary share in an initial public offering in Vietnam?
A. 1,000 VND
B. Can be any value
C. 10,000 VND
D. 100,000 VND
5. The number of outstanding shares plus treasury shares is equal to
A. Issued shares
B. Ordinary shares
C. Preference shares
D. Authorized shares
6. What is not advantage of preference shares?
A. Priority over ordinary shares in term of payment upon liquidation
B. Priority over ordinary shares in term of dividend payment
C. Priority over ordinary shares in term of voting right
D. Priority over ordinary shares in term of claim to a company’s assets and earnings
7. … are shares where the right of certain preference shareholders to participate in profits
after specified fixed dividend contracted for is paid is given
A. Non-cumulative preference shares
B. Cumulative preference shares
C. Participating preference shares
D. Non-participating preference shares
9. The issued share is:
A. The number of share hold by the public
B. The number of share sold to the public
C. A type of shares which had been issued but have been repurchased by the corporation
D. The maximum number of shares that a corporation is legally permitted to issue, as specified in
its articles of incorporation
10. Characteristics of Common Stock are EXCEPT:
A. Common stock usually carries with it the right to vote on certain matters, such as electing the
board of directors, establishing corporate objectives and policy, stock splits, etc.
B. Common stocks have preemptive rights, which enable them to retain their proportional
ownership in a company should it issue another stock offering.
C. Common stockholders receive fixed dividends
D. Perpetual Security
11. This type of shares has no benefit from excess profit generated by the company.
A. Non-participating preference shares
B. Participating and non -cumulative preference share
C. Participating preference share
D. b&c
12. Which of the following is highest among the rest?
A. Number of outstanding shares
B. Number of issued shares
C. Number of treasury shares
D. Number of authorized shares
13. Equity market is characterized as
A. Both of the above
B. Direct financing
C. None of the above
D. Indirect financing
14. Which characteristic does not belong to stock?
A. No limit on the amount of dividends that can be paid
B. Entitle the holder to ownership of the company
C. Residual claim and limited liability
D. Have certain maturity ??
15. Characteristics of equity market are
A. Equity market is characterized by direct financing
B. All of the above
C. Equity market is basically a continuous market
D. Equity market is near to perfectly competitive market
16. … is a type of preferred stock with a provision that stipulates that if an dividend
pavments have been missed in the past, the dividends owed must be paid out to cumulative
preferred shareholders first
A. Cumulative preference shares
B. Non-cumulative preference shares
C. Non-redeemable preference shares
D. Redeemable preference shares
17. What are the effects of stock split?
A. Increase the stock price
B. Decrease the stock brice
C. Decrease the number of stock outstanding
D. Increase total assets
18. Which sentence below is true about preference share?
A. All of the above
B. Preferred stocks carry fixed dividends and may have priority over common stock in the
payment of dividends and upon liquidation.
C. Preferred stocks are senior to common stocks, but are subordinate to bonds
D. Preferred stock usually carries no voting rights
19. Which type of shares is referred below? "If the company is unable to make the fixed
dividend payment, the obligation is not carried forward."
A. Participatina preference share
B. Non-cumulative preference share
C. Convertible preference share
D. Cumulative preference share
20. This sentence is true for which toe of shares? "If a company is unable to pay dividend
in one period, the amount due is carried forward to the next period".
A. Participatina preference share
B. Cumulative preference share
C. Convertible preference share
D. Non-cumulative preference share
21. Which type of company that can issue share?
A. Private Company
B. Join Stock Company
C. Limited Liability Combany
D. Partnership
22. Based on the claim of the shareholder, equity can be categorized into
A. Ordinary share and preference share
B. Registered share and bearer share
C. Authorized share and issued share
D. Outstanding share and treasury share
23. Risk neutral investor is:
A. An investor who is insensitive to risk
B. An investor who stays away from high-risk investments and prefers investments which
provide a sure shot return
C. An investor who prefers lower returns with known risks rather than higher returns with
unknown risks.
D. An investor who seeks out extremely risky investments that are prone to a return distribution
with excess kurtosis.
24. What is not the reason for the fact that book value almost never equal to market value?
A. Assets are listed on the balance sheet at market price.
B. Companies have discretion over how quickly or how slowly they record depreciation
C. A company that holds a lot of real estate on its balance sheet will likelv have a net book value
far below its market value
D. Assets are listed on the balance sheet at cost, meaning their balance sheet value is not updated
as prices change.
25. Treasury share is
A. The maximum number of shares that a corporation is legally permitted to issue, as specified in
its articles of incorporation.
B. The number of shares are sold to the
public
C. A type of shares which had been issued but have been repurchased by the corporation
D. A type of shares which is issued by the Government other than the corporation.
26. When do company issue share for non-cash through stock consolidation?
A. The company wants to capitalize a portion of retained earnings
B. The company wants to increase the share price to strengthen company's reputation
C. The company's availability of liquid cash is in short supply
D. The company wants to decrease the share price to increase the liquidity of stock
27. Number of outstanding shares plus treasury shares equal to
A. Authorized shares
B. Issued shares
C. Ordinary shares
D. Preference shares
28. What is preemptive right?
A. The right to be informed by the company regarding any information or development that
might influence its share price and dividend payout
B. The right to receive dividend
C. Allow current shareholder to purchase proportionate number of share in any new offering in
order to maintain their ownership in the company
D. The right to remaining assets
29. ….. are the shares which are bought back by the issuing company.
A. Issued shares
B. Authorized shares
C. Treasury shares
D. Outstanding shares
30. Which type of shares is given the opportunity to share in excess profit generated by the
company?
A. Participating preference share
B. Non-cumulative preference share
C. Convertible preference share
D. Cumulative preference share
31. When issue this type of shares, the company is required to pay any unpaid preference
share dividends from past vears before it can make any distribution to ordinary
shareholders.
A. Participating preference share
B. Cumulative preference share
C. Non-cumulative preference share
D. Convertible preference share
32. Which characteristic does not belong to stock?
A. Residual claim and limited liability
B. No limit on the amount of dividends that can be paid
C. Entitle the holder to ownership of the companv
D. Have certain maturity
33. ... is the value at which an asset is carried on a balance sheet or the total value of the
company's assets that shareholders would theoretically receive if a company were
liquidated
A. Market value
B. Book value
C. Face value
D. Intrinsic value
34. What is the effect of transferring from development investment fund, capital surplus
and other reserve fund to contributed capital?
A. Increase number of share outstanding
B. Increase total capital
C. Increase total assets
D. Increase charter capital
35. Why do we describe preference shares as a hybrid security?
A. Because preference shares are more preferred by investors
B. Because preference shares are issued in a short period of time
C. Because preference shares have priority on the remain assets of company
D. Because preference shares have features of two different financial instruments: bond and
stock
36. .. are shares where the right of certain preference shareholders to participate in profits
after a specified fixed dividend contracted for is paid is given.
A. Non-participating preference shares
B. Non-cumulative preference shares
C. Cumulative preference shares
D. Participating preference shares
37. An equity market is defined as a market which issue and trade ....
A. Loans
B. Financial instruments
C. Debt securities
D. Shares
38. Dividend per share is
A. Adiust to inflation
B. Fixed by issuer
C. Determined by the company's board of directors.
D. Remain unchanged even though the company is not profitable
39. Who are the last in line of all those who receive the remaining funds in the case of
bankruptcy?
A. Bondholders
B. Preferred stock holders
C. Common stockholders
D. Creditors
40. In case of stock dividend (Issuance of new shares in order to pay dividends) which items
can be changed?
A. Contributed capital
B. Cash
C. Retained earnings
D. Owners' equity
E. Total assets
F. Number of shares outstanding
G. Proportion of shareholders in the company
H. Market share price
41. ... entitles the company to buy back the preference shares on a predetermined date and
the holder to receive the specified value of the preference share in a cash payment.
A. Cumulative preference share
B. Redeemable preference share
C. Convertible preference share
D. Participating preference share
42. The maximum number of shares that a corporation is legally permitted to issue is:
A. Issued shares
B. Authorized shares
C. Treasury shares
D. Registered shares
43. Outstanding share is:
A. The maximum number of shares that a corporation is legally permitted to issued as specified
in its articles of incorporation.
B. The number of shares are sold to public
C. A type of shares which had been issued but have been repurchased by the corporation
D. The number of shares being hold by the public
44. Registered share is
A. The maximum number of shares that a corporation is legally permitted to issue
B. A type of shares that the name and address of an owner is engraved on a certificate and
dividend can only be made out to the named shares owner.
C. An equity security wholly owned by whoever holds the physical stock
certificate.
D. The number of shares sold to and held by the shareholders of a company.
45. Which of the following statements is true in case of stock dividend?
A. Contributed capital increases
B. Cash increases
C. Retain earning is unchanged
D.
46. Risk taker is:
A. An investor who is insensitive to risk
B. An investor who seeks out extremely risky investments that are prone to al return distribution
with excess kurtosis.
C. An investor who prefers lower retums with known risks rather than higher retums with
unknown risks.
D. An investor who stays away from high-risk investments and prefers investments which
provide a sure shot retum
47. Based on the claim of the shareholder, equity can be categorized into
A. Registered share and bearer share
B. …. And preference share
C. …. And treasury share
D. …. And issued share
48. Risk-averse investor is:
A. An investor who is insensitive to risk
B. An investor who seeks out extremely risky investments that are prone to a return distribution
with excess kurtosis.
C. An investor who prefers lower returns with known risks rather than higher returns with
unknown risks. ???
D. An investor who stays away from high-risk investments and prefers investments which
provide a sure shot return
49. In case a company issues stock for cash, which items will rise?
A. Shareholders' equity
B. Cash
C. Outstanding share
D. b&c
50. In the case of recession, the Central Bank should:
A. Implement the expansionary monetary policy
B. Sell securities on O.M.O
C. Buy securities on O.M.O
D. Implement outright transaction
51. In the case of high inflation, the Central Bank should:
A. Implement the expansionary monetary policy
B. Sell securities on O.M.O
C. Buy securities on O.M.O
D. Implement outright transaction
52. Which type of transactions can affect the level of money supply temporarily?
A. Outright sale
B. Repo transaction
C. Outright purchase
D. Both A and C
53. Which type of transactions can affect the level of money supply permanently?
A. Outright sale
B. Repo transaction
C. Outright purchase
D. Both A and C
54. Which type of transactions create permanent effect on money supply?
A. Outright transaction
B. Repo
C. Reverse Repo
D. Both b&c
55. In …. the Central Bank sell Treasury securities with commitment to buy it back at a
specified future date at a predetermined rate.
A. Outright purchase
B. Outright sale
C. Repo Reverse Repo
56. In …, the Central Bank sell Treasury securities without commitment of reverse
transaction in the future.
A. Outright purchase
B. Outright sale
C. Repo
D. Reverse Repo
57. Contractionary monetary policy can be implemented by:
A. Selling Treasurys to member bank.
B. Buying Treasurys from memberbank.
58. Expansionary monetary policy can be implemented by:
A. Selling Treasurys to member bank.
B. Buying Treasurys from memberbank.
59. In Vietnam, which instrument can be traded in O.M.O?
A. Municipal bond
B. T-bond
C. C.D
D. All the above
60. Who are the last in line of all those who receive the remaining funds in the case of
bankruptcy?
a. Common stockholders
b. Bondholders
c. Creditors
d. Preferred stock holders
61. The maximum number of shares that a corporation is legally permitted to issue is:
a. Issued shares
b. Authorized shares
c. Treasury shares
d. Registered shares
62. This type of shares has no benefit from excess generated by the company.
a. Non-participating preference shares
b. Participating preference share
c. Participating and non-cumulative preference share
d. b&c
63. In case a company issues stock for cash, which items will rise?
a. Shareholders' equity
b. Cash
c. Outstanding shares
d. A, b &c
64. This sentence is true for which type of shares? "If a company is unable to pay dividend
in one period, the amount due is carried forward to the next period".
a. Cumulative preference share
b. Non-cumulative preference share
c. Convertible preference share
d. Participating preference share
65. When issue this type of shares, the company is required to pay any unpaid preference
share dividends from past years before it can make any distribution to ordinary
shareholders.
a. Cumulative preference share
b. Non-cumulative preference share
c. Convertible preference share
d. Participating preference share
66. Which type of shares is referred below? "If the company is unable to make the fixed dividend
payment, the obligation is not carried forward."
a. Cumulative preference share
b. Non-cumulative preference share
c. Convertible preference share
d. Participating preference share
67. Which type of shares is given the opportunity to share in excess profil generated by the
company?
a. Cumulative preference share
b. Non-cumulative preference share
c. Convertible preference share
d. Participating preference share
67. .... entitles the company to buy back the preference shares on a predetermined date and
the holder to receive the specified value of the preference share in a cash payment.
a. Cumulative preference share
b. Redeemable preference share
c. Convertible preference share
d. Participating preference share
68. .... may be tumed into ordinary shares in the issuer company at a future date.
a. Cumulative preference share
b. Redeemable preference share
c. Convertible preference share
d. Participating preference share
69. When do company issue share for non-cash through stock split ?
A. The company wants to increase the share price to strengthen company's reputation
B. The company wants to capitalize a portion of retained earnings
C. The company wants to decrease the share price to increase the liquidity of stock
D. The company's availability of liquid cash is in short supply
70. …
1. When do company issue shares for non-cash through stock dividend?
1. The company's availability of liquid cash is in short supply
2. The company wants to capitalize a portion of retained earnings
3. The company wants to increase the number of outstanding shares in the market
4. The company wants to increase the share price for better reputation
A. I and 2
B. 2 and 3
C. 1, 2 and 3
D. 1,2,3 and 4
71. When do company issue share for non-cash through tock consolidation?
A. The company's availability of liquid cash is in short supply
B. The company wants to capitalize a portion of retained carings
C. The company wants to increase the share price to strengthen company's reputation
D. The company wants to decrease the share price to increase the liquidity of slock
72. What is NOT the effect of stock dividend?
A. Increase the number of share outstanding
B. Decrease share price
C. Increase the percentage ownership of shareholder
D. Keep the total assets remain unchanged
73. What are the effects of stock split?
A. Increase total assets
B. Decrease the stock price
C. Increase the stock price
D. Decrease the number of stock outstanding
 CHAPTER 4: DEBT MARKET
1. Debt instruments represent a contractual claim against an issuer to make specific
payments, including …., over a defined period
a. Periodic interest payments
b. Principal repayments
c. Both of the above
d. None of the above
2. What is NOT the characteristic of the debt market?
a. The issuer in debt market takes out the loan in the manner of repayment of both principal and
interest
b. The investor assumes no responsibility for the issuer's results and in any case, the issuer shall
be responsible to repay under the specified commitments agreed when issuing debt instruments.
c. Operations of the debt market depend remarkably on the fluctuations of market interest rate
d. Instruments in debt markel have no maturities
3. … is the market through which the Government can plan and implement different
monetary policies.
a. Interbank market
b. Open Market
c. Credil Market
d. Money Market
4. In domestic debt market, … are trading
a. Instruments sell domestically
b. Instruments sell abroad
c. Instruments issued in foreign currencies
d. Instruments issued in domestic currencies
5. Which of the following statements is NOT correct?
a. A debt instrument issued for a period of more than one year with the purpose of raising capital
by borrowing
b. Bond is a promise to repay the principal along with interest (coupons) on a specified date
(maturity)
c. Bond is a type of securities that certify the legitimate rights and interests of the owners for a
part of the issuer’s equity
d. Bond usually has fixed interest (coupon) rate over its term to maturity
6. Which sentence is not true for the unsecured bonds?
A. Unsecured bonds are secured by the common assets of the issuers in the event of
bankruptcy.
B. Unsecured bonds are secured by the prestige of the issuing organizations.
C. Unsecured bonds are issued without any pledged assets.
D. Unsecured bonds will receive nothing from issuers in the case of bankruptcy.
7. Term to maturity of bond is …
A. 1 year
B. The period calculated from buying date to selling date.
 C. The period calculated from issue day to maturity date
D. The period calculated from selling day to the maturity date
8. … are issued bonds secured by the prestige of the issuing organizations.
A. Guaranteed bonds
B. Unsecured bonds
C. Bonds with pledged assets
D. Bonds secured by deposit securities
9. Which type of bonds has a coupon that remains constant throughout the life of the bond?
A. Floating rate note
B. Coupon bond
C. Zero-coupon bond
D. Deep discount bond
10. Which type of bond is issued by local authorities?
A. Corporate bond
B. Short-term bond
C. Government bond
D. Municipal bond
11. … is a kind of bond that its principal amount and the interest payments are indexed to
the price index such as inflation
A. Linker
B. Perpetuity
C. Municipal bond
D. Junk bond
12. Par value of bond is …
A. The buying price of the bonds at the time of issuance
B. The amount on which the issuer has to be repaid at the end of the term
C. The amount on which the issuer sell bond to investor
D. The amount paid to bond holder between two interest payment times
13. … is often exempt from the federal income tax and from income tax of the state in
which they are issued
A. International bond
B. Treasury bonds
C. Corporate bond
D. Municipal Bond
14. … is a type of bond that upon its issuance the bond certificate shows a provision that
allows the issuing organization to buy part or the entire of the bond before its maturity
A. Registered bond
B. Callable bond
C. Warrant bond
D. Convertible bond
15. Treasury bills are issued on
A. Premium basis
 B. Treasury basis
C. Discount basis
D. Corporate basis
16. Treasury notes that provide returns tied to inflation rate or classified as
A. Clean price bonds
B. Discount index bonds
C. Premium index bonds
D. Inflation index bonds
17. Which kind of bonds allows for exchange to shares of a corporations other than the
issuer?
A. Callable bond
B. Convertible bond
C. Government bond
D. Exchangeable bond
18. Why are bonds considered to be more stable and less risky than stocks?
A. Bonds do not gain any kind of ownership rights to the issuer, unlike in the case of
equities.
B. Bonds have a greater claim on remaining assets than a shareholder in the case of
liquidation.
C. B and C
D. Bonds have priority on payment over the dividends paid to shareholders
19. Which sentence is not true for high-yield bond?
A. The firm issuing the bond is of high quality.
B. The bond is rated below investment grade by the credit rating agencies
C. This type of bonds is riskier than low yield bond
D. B and C
20. As compared to non convertible bonds yield on convertible bond is
A. Relatively higher
B. Relatively zero
C. Relatively discounted
D. Relatively lower
21. According to Fitch's rating system, debt instruments with lowest default risk and
highest credit quality are assigned rating of
A. BBB
B. BB
C. AAA
D. AA
22. Which of the following sentences is true for treasury inflation protection securities
(TIPS)?
A. Coupon rate is set at a fixed rate and the principle is fixed
B. Coupon rate is adjusted for inflation and the principle is adjusted for inflation
C. Coupon rate is set at a fixed rate and the principal is adjusted semi-annually for inflation
 D. Coupon rate is adjusted for inflation and the principle is fixed
23. Which type of instruments is not defined as debt instruments?
A. Term loans
B. Unsecured notes
C. Bond
D. Stock
24. Junk bonds which are rated lower than Triple B are also classified as
A. High floating rate bonds
B. High yield bonds
C. Zero floating bonds
D. Low yield bonds
25. Which kind of bonds pay no regular interest?
A. Coupon Bond
B. Floating rate note
C. Perpetual bond
D. Zero-coupon bond
26. Which sentence is not true for high yield bond?
A. The firm issuing the bond is of high quality.
B. The bond is rated below investment grade by the credit rating agencies.
C. This type of bonds is riskier than low yield bond.
D. b&c
27. Which sentence is true for high yield bond?
A. The fir issuing the bond is of high quality.
B. The bond is rated below investment grade by the credit rating agencies.
C. This type of bonds is riskier than low yield bond.
28. Treasury notes that provide returns tied to inflation rate are classified as
A. Clean price bonds
B. Discount index bonds
C. Premium index bonds
D. Inflation index bonds
 CHAPTER 5: ACTIVITIES IN SECURITIES MARKET
1. Which is true for the reasons of private placement?
A. All of the above
B. Encouraging the working spirit of staffs
C. The company does not want to share the ownership with outside investors
D. Facilitate tightening business relationships with business partners.
2. Which sentence is not true when refers to private placement in Vietnam?
A. A private placement of securities is an arrangement for offering securities without using the
mass media or the Internet.
B. A private placement of securities is an arrangement for offering securities to at least 100
investors excluding institutional investors.
C. A private placement of securities is an arrangement for offering securities to less than 100
investors excluding institutional investors.
D. Issuers can organize small conferences with potential investors
3. In Vietnam, Private placement of securities is an arrangement for offering securities to ...
investors not including institutional investors
A. More than 100 investors
B. 100 investors
C. 1000 investors
D. Less than 100 investors
4. Which method below is a type of public offering?
A. Issue underwriting
B. None of the above
C. Both of the above
D. Direct Public Offering
5. Which sentence is not true for issue underwriting?
A. Ensure a higher degree of success of the issue
B. Underwriter help issuers review financial management
C. Lower cost
D. Save time
6. Which sentence is true for direct public offering?
A. Save time of the offering
B. It can’t eliminate the middlemen.
C. Save issuing cost
D. The success of the offering is always guaranteed
7. A major purpose of the prospectus is to:
A. Inform investors of the security's rate of return.
B. Advise investors of the security’s potential risk.
C. Distribute stock warrants to prospective investors.
D. List the security's dividend payment dates.
8. …. is a type of offering in which the issuers themselves conduct all the steps of public
offering.
A. Direct public offering
B. Auction or bidding method
C. Issue underwriting
D. Indirect public offering
9. In Vietnam, public offering of securities is the sale of securities to ... investors
A. 10 investors excluding institutional investors
B. Less than 100 investors excluding institutional investors
C. At least 100 investors excluding institutional investors
D. Exactly 100 investors excluding institutional investors
10. Which type of underwriting requires the highest fee?
A. All or none
B. Best efforts
C. Stand-by underwriting
D. Firm Commitments
11. Which of the following is disadvantage of private placement?
A. Issuing costs are relatively low
B. The offering procedure is quite complicated.
C. Encouraging the working spirit of staffs
D. The amount of capital mobilized is quite small.
12. Which of the following is not a method a firm can use to publicly issue common stock?
A. Shelf registration ??
B. Firm commitment underwriting
C. Best efforts offering
D. Private placement
13. Which is true for the reasons of public offering?
A. All of the above
B. The company wants to enhance its prestige.
C. The company does not want to share the ownership with outside investors
D. The amount of capital needed is small
14. A company intends to mobilize 10 billion VND to invest in a new project. If it cannot
mobilize this amount of money, the proiect cannot be implemented. Which is the best type
of underwriting the company should use?
A. Stand-by underwriting
B. Best efforts
C. All or none
D. Firm Commitments
15. Which sentence is true for direct public offering?
A. It can take a shorter period of time.
B. Increase issuing cost
C. The success of the offering is always guaranteed
D. This method is often used in case of reputable issuers, for example Treasury bond issuing.
16. A firm's first offering of stock to the general public known as
A. A general cash offer
B. First-stage financing
C. A seasoned offering
D. An initial public offering (IPO)
17. … is a type of offering in which a company of market securities without the middlemen
- investment banks, broker-dealers, and underwriters.
A. Direct Public Offering
B. Firm Commitments
C. All of the above
D. Best efforts underwriting
19. Which of the following statements is incorrect concerning private placements?
A. The securities are often less marketable.
B. Only a small amount of corporate debt is financed in this manner
C. The securities are not made available to the public.
D. Terms of the financing can be custom-tailored.
20. Which sentence is true for direct public offering
A. Increase issuing cost
B. Save time of offering
C. The success of the offering is always guaranteed
D. Eliminate the middleman
21. A company intends to issue rights. Which is the type of underwriting the company
should use?
A. All or none
B. Best efforts
C. Stand-by underwriting
D. Firm Commitments
22. Which sentence is not true when refers to characteristics of primary securities market?
A. The market operates infrequently.
B. Primary market performs the crucial function of facilitating long-term capital formation in the
economy.
C. The issuers receive the monev in return of selling new securities to the investors.
D. The volume and transaction speed of the primary market are higher than those of secondary
market.
23. A market where new securities are bought an for the first time is known as a … market
A. Primary
B. Secondary
C. Capital
D. Tertiary
24. A market for existing securities rather than new issues is known as the _ market.
A. Primary
B. Capital
C. Secondary
D. Tertiary
25. In Vietnam, requirement conditions of public offering are
A. Charter capital is at least 80 billion VND
B. All of the above
C. Charter capital is at least 25 billion VND
D. Charter capital is at least 30 billion VND
26. Right of stockholders of firm that new shares must be offered to existing stockholders
first, rather than new stockholders is classified as
A. Preemptive rights
B. Securitize rights
C. Non-offered rights
D. Existing rights
27. The New York Stock Exchange (NYSE) can be considered as being a part of the ... and
the ....
A. Secondary market for long-term securities; capital market
B. Capital market; money market
C. Capital market; primary market for long-term securities
D. OTC market: secondary market for long-term securities
28. What is the role of the underwriter in an issue of securities?
A. The difference between the price at which the underwriter buys the securities and the price at
which they are resold is the underwriter's spread. Underwriting firms have expertise in such sales
because they are in the business all the time, whereas the company raises capital only
occasionally.
B. Underwriters manage the sale of the securities and advise on the price at which the issue is
sold. They then buy the securities from the issuing company, and resell them to the public.
C. Neither A nor B
D. Both A and B
29. A major purpose of the prospectus is to:
A. Distribute stock warrants to prospective investors.
B. Advise investors of the security's potential risk.
C. Inform investors of the security's rate of return.
D. List the security's dividend payment dates.
30. Which sentence is not true when refers to private placement in Vietnam?
a. A private placement of securities is an arrangement for offering securities without using the
mass media.
b. Issuers can organize small conferences with potential investors.
c. A private placement of securities is an arrangement for offering securities to less than 100
investors excluding professional investors.
d. A private placement of securities is an arrangement for offering securities to at least 100
investors excluding professional investors.
31. Which is true for the reasons of private placement?
a. Facilitate tightening business relationships with business partners.
b. The company does not want to share the ownership with outside investors.
c. Encouraging the working spirit of staff.
d. All of the above
32. The cases in which a company chooses the private offering rather than public offering
are:
I. The company couldn't meet requirements of public offering
2. The number of securities issued is too large
3. It allows company to choose investors, that help company strengthen their business
relationship
4. Investor with similar objective can provide business advice and assistance, as well as funding
A. I
B. 1,2,3
C. 1,3,4
D. 1,2,3,4
33. A company intends to issue shares to 100 employees. Is this case P.P or P.O ?
34. Why the requirement conditions in P.O are more stringent than P.P?
35. Which type of underwriting is the riskiest one (from the underwriter's view)?
A. Firm Commitments
B. Best efforts
C. Stand-by underwriting
D. All or поле
36. Which type of underwriting requires the highest fee?
A. Firm Commitments
B. Best efforts
C. Stand-by underwriting
D. All or none
37. Which type of underwriting in which underwriter agrees to purchase the portion
of the new securities issue that remains after a public offering?
a. Firm Commitments
b. Best efforts
c. Standby underwriting
d. All or none
38. In Vietnam, which case below is not public offering?
a. A company offers stocks to 100 individual investors
b. A company offers stocks through mass media, including the Internet.
c. A company offers stocks to an unspecified number of investors.
d. A company offers stocks to 105 investors in which 10 investors are institutional
investors.
39. Which sentence is true for limit order?
A. It can be placed to avoid the danger of unexpected price can be changed.
B. The investor may miss out on the trading opportunity.
C. It is not guaranteed to execute.
D. All of the above.
40. A major purpose of the prospectus is to:
A. Advise investors of the securitv's potential risk.
B. List the security's dividend payment dates.
C. Inform investors of the security's rate of return.
D. Distribute stock warrants to prospective investors.
41. Which is true for the reasons of private placement?
A. All of the above
B. The company does not want to share the ownership with outside investors
C. Encouraging the working spirit of staffs
D. Facilitate tightening business relationships with business partners.
42. Assumption that in a continuous auction a stock exchange receives buying orders of
stock A as the following table

An investor places a selling market order with the guantitv of 100 shares. What is the
execution price of stock A at that moment?
A. 50 000 VND
B. 50,200 VND
C. 50,100 VND
D. 50.300 VND
43. …is an order to buy or sell a security at the opening/closing price
A. ATO; ATC
B. Market order
C. Stop order
D. Limit order
44. Most bonds:
A. Are floating-rate securities.
B. Give bondholders a voice in the affairs of the corporation.
C. Are ranked after stocks in term of remaining assets upon liquidation.
D. Are interest-bearing obligations of governments or corporations
45. A Stock Exchange holds a periodic auction to fix an opening price. During the opening
session on 2/1/N, it received limit orders of stock A as the following table:
Which table below is true?
46. A Stock Exchange holds a periodic auction to fix an opening price. After 15 minutes
opening on 2/1/N, it received limit orders of stock A as the following table:
Buy order Price Sell order
Number of shares Order sign Number of shares Order sign
600 1 ATO 900 1
3500 2 30000 1200 2
2300 3 30100 2900 3
3200 4 30200 500 4
1500 5 30300 2100 5

Determine the listed price of stock A

A. 30.000 dong
B. 30,200 dong
C. 30,300 dong
D. 30,100 dong
47. A Stock Exchange holds a periodic auction to fix an opening price. After 15 minutes
opening on 2/1/N, it received limit orders of stock A as the following table:
Buy order Price Sell order
Number of shares Order sign Number of shares Order sign
600 1 ATO 900 1
3300 2 30000 1000 2
2100 3 30100 2500 3
1200 4 30200 700 4
1700 5 30300 2500 5
Determine the listed price of stock A
A. 30.000 dong
B. 30.200 dong
C. 30,300 dong
D. 30,100 dong
48. In Vietnam, public offering of securities is the sale of securities to ... investors
A. Less than 100 investors excluding institutional investors
B. Exactly 100 investors excluding institutional investors
C. At least 100 investors excluding institutional investors
D. 10 investors excluding institutional investors
49. The cases in which a company chooses the private offering rather than public offering
are:
1. The company couldn't meet requirements of public offering
2. The number of securities issued is too large
3. It allows company to choose investors, that help company strengthen their business
relationship
4. Investor with similar objective can provide business advice and assistance, as well as
funding.
A. 1
B. 1,2,3
C. 1.3.4
D. 1,2,3,4
50. Which type of orders will expire after the end of the trading day?
A. All or none
B. Day order
C. Immediate or cancel
D. Open order
51. Price spread of Ho Chi Minh city stock exchange (HOSE) is
A. +/- 15%
B. +/- 10%
C. +/-7%
D. +/- 20%
52. Which statement is INCORRECT about a limit order?
A. A sell limit order can only be executed at the limit price or lower
B. A buy limit order can onlv be executed at the limit price or lower
C. Limit orders do not guarantee execution
D. Limit orders help ensure that an investor does not pay more than a pre-determined price for a
stock
53. A Stock Exchange holds a periodic auction to fix an opening price. During the opening
session on 2/1/N, it received limit orders of stock A as the following table:
Buy order Sell order
Accumulated Number of shares Order sign Price (1000 Order sign Number of Order sign
dong) shares
- 500 M ATO N 1300 -
3700 3200 H 18.9 B 2000 9300
6500 2800 A 18.8 - - 7300
6800 300 C 18.7 I 500 7300
6800 - - 18.6 E 2000 6800
7400 600 D 18.5 F 3500 4800
Determine the listed price of stock A?
Assuming that the prior closing price is 18.7
A. 18.8
B. 18.7
C. 18.5
D. 18.6
54. A Stock Exchange holds a periodic auction to fix an opening price. During the opening
session on 2/1/N, it received limit orders of stock A as the following table:
Buy order Sell order
Accumulated Number of shares Order sign Price (1000 Order sign Number of Accumulated
dong) shares
- 500 M ATO N 1300 -
3700 3200 H 18.9 B 2000 9300
6500 2800 A 18.8 - - 7300
6800 300 C 18.7 I 500 7300
6800 - - 18.6 E 2000 6800
7400 600 D 18.5 F 3500 4800
Assuming that the prior closing price is 18.7.
Determine the transaction value of this session.
A. 126,480 (1,000 dong)
B. 127.160 (1.000 dong)
C. 125.800 (1.000 dong)
55. Trading unit is
A. Both a and b
B. The standardized number of units in which a financial instrument trades
C. None a nor b
D. Smallest price unit
56. Why OTC market (decentralized market) is riskier than Stock Exchange (centralized
market)?
A. All of the above
B. Commodities on OTC market are mainly non-listed securities, standard for securities to be
traded on this market is lower and more flexible than the listing standard on the stock exchange
C. Trading method on this market is agreement method
D. Commodities on OTC market are mainlv securities of small and medium-sized companies,
high-tech companies, newly established
57. A Stock Exchange holds a periodic auction to fix an opening price. During the opening
session limit orders of stock A as the following table:
Buy order Sell order
Accumulated Number of shares Order sign Price (1000 Order sign Number of Accumulated
dong) shares
- 500 M ATO N 1300 -
3700 3200 H 18.9 B 2000 9300
6500 2800 A 18.8 - - 7300
6800 300 C 18.7 I 500 7300
6800 - - 18.6 E 2000 6800
7400 600 D 18.5 F 3500 4800
Assuming that the prior closing price is 18.7.
Mr. Nam places an order to buy 100 shares of stock at a price of 18,900 VND. Can he buy
the s the stock, determine the amount of money that Mr. Nam has to pay. Suppose that the
brokerag transaction value.
A. Yes, he can sell entirely. The amount of money that he can receive: 1,893.780 dong
B. Yes. he can sell entirely. The amount of money that he can receive: 1,873.74 dong
C. Yes, he can sell entirely. The amount of money that he can receive: 1,870,000 dong
58. Stock Exchange represents …
A. A decentralized market
B. A centralized market
C. A perfectly competitive market
D. All of the above
59. A Stock Exchange holds a periodic auction to fix an opening price. The listed price is
18,700 dong. Mr. Nam places an order to buy 100 shares of stock at a price of 18,900 VND.
Can he buy the stock? If he can buy the stock, when will the stock be on his account?
Suppose that today is Monday, 2nd, Jan, N
A. No, he cannot
B. Yes, he can. The stock will be on his account on Tuesday, 3rd Jan, N
C. Yes, he can. The stock will be on his account on Thursday. 5th 1, Jan, N
D. Yes, he can. The stock will be on his account on Wednesday, 4th Jan, N
60. …is a method that the middleman commits with issuing company to complete issuing
preparation procedures, to buy a certain amount of issuing security or to buy all
unsubscribed issuing shares
A. Direct Public Offering (DPO)
B. Initial Public Offering
C. Second Public Offering
D. Issue Underwriting
61. Which types of orders are being used on Hanoi Stock Exchange (HNX)?
A. LO, MTL, MOK, MAK, ATC, PLO.
B. ATO, LO, MTL, MOK, MAK, ATC, PLO.
C. ATO, MP, LO, ATC.
D. ATO, MTL, MOK, MAK, LO.
62. Principle of price auction in descending order of priority:
A. Price priority, Time priority, Quantity priority, Customer priority
B. Time priority, Price priority, Customer priority, Quantity priority
C. Price priority, Customer priority, Time priority, Quantity priority
D. Price priority, Time priority, Customer priority, Quantity priority
63. ... is an arrangement of all orders from clients within a certain period to determine a
price at which the largest number of stocks is
A. Continuous Auction
B. Negotiation
C. Single Auction
D. Periodic Auction
64. A Stock Exchange holds a periodic auction to fix an opening price. During the opening
session on 2/1/N, it received limit orders of stock A as the following table:
Buy order Sell order
Accumulated Number of shares Order sign Price (1000 Order sign Number of Accumulated
dong) shares
- 600 1 ATO 1 900 -
8900 3300 2 15 2 1000 1900
5500 2100 3 15.1 3 2500 4400
3500 1200 4 15.2 4 700 5100
2300 1700 5 15.3 5 2500 7600
Determine the sell order executed?
A. 1,2,3
B. 1.5,4,3
C. 1,2,3,4,5
D. 1.2.3.4
65. A Stock Exchange holds a periodic auction to fix an opening price. After 15 minutes
opening on 2/1/N, it received limit orders of stock A as the following table
Buy order Price(dong) Sell order
Number of shares Order sign Number of shares Order sign
600 1 ATO 900 1
3300 2 30000 1000 2
2100 3 30100 2500 3
1200 4 30200 700 4
1700 5 30300 2500 5
Determine the listed price of stock A?
A. 30.000 dong
B. 30.200 dong
C. 30,300 dong
67. A Stock Exchange holds a periodic auction to fix an opening price. During the opening
session on 2/1/N, it received limit orders of stock A as the following table:
Buy order Price(dong) Sell order
Number of shares Order sign Number of shares Order sign
600 1 ATO 900 1
3300 2 15000 1000 2
2100 3 15100 2500 3
1200 4 15200 700 4
1700 5 15300 2500 5
Which table below is true?
A.
B.

C.

D.
 CHAPTER 6: SECURITIES ANALYSIS AND INVESTMENT
1. The probability of the economy happening at 5 levels is the same next year. Here are the
expected rates of returns for stock P in each situation:
Economic situation Stock P
1 4%
2 6%
3 9%
4 4%
5 -5%
Determine the risk level of stock P
A. 4.67%
B. 7.13%
C. 3.67%
D. 3.6%
2. The probability and rate of return in 4 situations for stock A are in the table below.

Determine the risk level of stock A?

A. 7.55%
B. 4.55%
C. 5.55%
D. 7.72%
3. A Joint Stock Company has the following information:
⁃ The Compan onlv issues common stock: Number of issued shares is 700,000 shares.
⁃ According to the data on the balance sheet as of June
30th , year N
+ Total assets: 13,000 million dong
+ Total liabilities: 4.000 million dong
- In August of year N, the company bought back 75,000 shares with the amount of VND
1.875 million and completed the payment.
Determining the book value per share after buying back shares?
A. 11.400 dong
B. 14,000 dong
C. 14,100 dong
D. 14.400 dong
4. A stock has dividend in year N-1 is 2,000 VND per share. The dividend distribution
strategy in the following years is as follows: In the next 2 ears the growth rate is 5% per
annum and the following years increase steadily every year to 6% per annum. Investor A
intends to invest in this stock on 1/1/N and he will sell it after 2 years. Estimate the sale
price of this stock after 2 years from the date of 1/1/ N? Assumption that: The required
rate of return is 10% per year.
A. 58,432.51 dong
B. 61,938.45 dong
C. 62,938.45 dong
D, 58.435.41 dong
5. Which of the following statements is true?
A. A bondholder repays principal when the bond matures
B. Low inflation is expected to have a negative effect on bond prices.
C. Bonds are usually less liquid than stocks.
D. Generally speaking, bonds are riskier than common stocks.
6. A zero-Coupon bond has the following features: Face value of 100,000 dong; maturity of
5 years; issuing price of 80,000 dong. This bond has been circulating for 3 vears. An
investor bought the bond at the issuing time. Currently, the investor sells this bond at price
of 88,000 dong. Determine the internal rate of return in this case?
A. 3.33%
B. 3.23%
C. 3.43%
D. Unspecified and no answer.
7. A corporate bond has a face value of VND 100,000, paying interest once a vear at the end
of each vear. This bond has coupon vield of 9% per annum and a maturity of 6 vears.
Issued price was 102,000 dong. Investor A bought this bond at the time of the issuance last
year and received interest once. Currently, investor A sells this bond at a price of 104,000
dong. Determine the term interest of the investment?
A. 10.78%
B. 9%
C. 8 82%
D. 1.96%
8. Your company is considering to invest in a stock has an expected interest rate of 18%.
Treasury bill interest rate is 8%; market risk premium is 15%; the stock has a beta of 0.8.
What should your company do?
A. Do not invest because real interest rate is lower than required rate
B. Unspecified and no advice.
C. Invest because required rate is lower than real interest rate.
D. Invest because real interest rate is higher than required rate
9. Which type of risk below is classified as non-systematic risk?
A. Interest rate risk
B. Liquidity risk
C. Inflation risk
D. Exchange rate risk
10. Investor A has an expected rate of return of 12% per annum and the estimated price of
bond X is 98,675 dong. The market price of bond X is 99,000 dong. What should investor A
do?
A. Do not buy this bond because he cannot reach the expected rate of return.
B. Buy this bond because A can get a profit.
C. Do not buy this bond because A can get a loss
D. Wait until the bond price drops to buy.
11. Your bank is considering to invest in a stock has an expected yield of 10%. The T-bill
interest rate is 8%, the average interest rate of the stock market is 12%, the stock under
consideration has risk equal to 70% of the average market risk. What should investor do?
A. Unspecified and no advice.
B. Do not invest because real interest rate is lower than required rate
C. Invest because required rate is lower than real interest rate.
12. In Capital Asset Pricing Model (CAPM): Ri = Rf + Bi (RM - Rf), what can we call
Bi(Rm - Rf)?
A. Risk-free rate
B. Market risk premium
C. Risk premium of the investment i
D. Expected return of investment i
13. In case market interest rate increases:
A. Current yield increased
B. Bond investments are beneficial because investors receive higher interest rates
C. The price of bonds has dropped, so the term interest rate has increased
14. A Coupon bond has a face value of VND 100,000; a maturity of 5 years; Coupon yield
of 11% per annum, paying interest once a year at the end of each year. Issued price was
96,000 dong. Investor A bought this bond at the time of the issuance 3 years ago and
received interest three times. He has just sold this bond at the price of 108,000 dong.
Did his investment decision 3 years ago met his requirements?
Assumption that Market interest rates are stable at 14% per year, the expected rate of
return of investor is 15% per annum.
A. Yes. he did because PV=96,127.23 dong > Issued price
B. No. he did not because PV = 98,434.88 dong > Issued price
C. Yes. he hid because PV = 98,434.88 dong > Issued price
D. No. he did not because PV=96,127.23 dong > Issued price
15. A joint stock company has the following information:
- The Company issues two types of stocks:
+ Cumulative and non-participating preference shares: Number of issued shares is 10,000
shares (issued 5 years ago) with par value of 10.000 dong per share and a dividend of 12%
per year.
+ Ordinary shares: Number of shares issued is 80,000 shares with par value of 10,000 dong
per share
⁃ Because of the difficult business situation, in 2 years before year N, the Company did
not pay dividends to preference shareholders.
⁃ According to the balance sheet data as of December 315, year N:
+ Total assets: 2,000,000,000 dong.
+ Total liabilities: 800,000,000 dong.
Determine the book value of an ordinary share of the Company in year N?
(In year N, the company has not paid dividend to preference shareholders).
A. 13,800 dong.
B. 13,450 dong
C. 13,300 dong
D. 13,500 dong
16. A stock has dividend in year N-1 is 2,000 VND per share. The dividend distribution
strategy in the following years is as follows: In the next 2 years the growth rate is 8% per
annum and the following years the growth rate is 5% per annum indefinitely. Investor A
intends to invest in this stock on 1/1/N and he will sell it after 3 years. Estimate the sale
price of this stock after 3 years from the date of 1/1/N?
Assumption that: The required rate of return is 10% per year.
A. 54,010.15 dong
B. 42,000 dong
C. 48,988.8 dong
D. 51,438.24 dong
17. The probability of the economy happening at 4 levels is the same next year. Here are
the expected rates of returns for stock P in each situation:
Economic situation Stock P
1 4%
2 6%
3 9%
4 -4%
Determine the expected rate of return of stock P?
A. 4.82%
B. 4.75%
C. 3.82%
D. 3.75%
18. The probability of the economy happening at 5 levels is the same next year. Here are
the expected rates of returns for stock P and Q in each situation:
Economic situation Stock P Stock Q
1 4% 5%
2 6% -7%
3 9% 10%
4 4% 14%
 5 -5% 8%
Determine the expected rate of return of each stock?
A. 3.6% and 6%
B. 5.6% and 6.1%
C. 3.6% and 6.1%
D. 5.6% and 6%
Determine the risk level of each stock?
A. 6% and 7.13%
B. 3.6% and 4.67%
C. 4.67% and 7.13%
D. 3.6% and 6%
19. A bond has a face value of 100,000 dong, nominal interest rate is y% per annum, and
the remaining term to maturity is 5 years. This bond is being sold on the market at price of
100,000 dong. Determine the YTM of that bond?
A. None of the above
B. 9.2%
C. 9.1%
D. 9%
20. Which of the following statements is not true for the one-stage growth model?
A. The required rate of return is higher than the dividend growth rate
B. Dividends grow at a constant rate
C. The dividend growth rate continues indefinitely
D. The required rate of return is lower than the dividend growth rate
21. The probability of the economy happening at 5 levels is the same next year. Here are
the expected rates of returns for stock Q in each situation
Economic situation Stock Q
1 5%
2 -7%
3 10%
4 14%
5 8%
Determine the risk level of this stock
A. 3.6%
B. 6%
C. 4.67%
D. 7.13%
22. The probability of the economy happening at 4 levels is the same next year. Here are
the expected rates of returns for stock P in each situation:
Economic situation Stock P
1 4%
2 6%
3 9%
 4 -4%
Determine the risk level of stock P?
A. 4.75%
B. 3.75%
C. 4.82%
D. 3.82%
23. A stock has dividend in year N-1 is 2,000 VND per share. The dividend distribution
strategy in the following years is as follows: In the next 2 years the growth rate is 5% per
annum and the following years increase steadily every year to 6% per annum. Investor A
intends to invest in this stock on 1/1/N and he will sell it after 3 years. Estimate the sale
price of this stock after 3 years from the date of 1/1 / N? Assumption that: The required
rate of return is 10% per year.
A. 58,435.41 dong
B. 58,432.51 dong
C. 61,938.45 dong
D. 62,938.45 dong
24. A zero-Coupon bond has the following teatures: race value ot 100,000 dong; maturity ot
5 years; Issuing price of 80,000 dong. This bond has been circulating for 3 years. An
investor bought the bond at the issuing time. Currently, the Investor intends to sell this
bond to recover his investment capital. Determine the price of bonds that investors can
sell?
Assumption that: Market interest rates are stable at 7% per year, the expected rate of
return of investor is 8% per annum.
A. 85,733.88 dong
B. Unspecified and no answer.
C. 87,343.87 dong
D. 81,629.79 dong
25. Your bank is considering to invest in a stock has an expected yield of 9%. The T-bill
interest rate is 6%, the average interest rate of the stock market Is 10%, the stock under
consideration has a beta ot 0.6. What should investor do?
A. Do not invest because real interest rate is higher than required rate
B. Unspecified and no advice.
C. Do not invest because real interest rate is lower than required rate
D. Invest because required rate is lower than real interest rate.
26. Your bank is considering to invest in a stock has an expected yield of 10%. The T-bill
interest rate is 8%, the average interest rate of the stock market Is 12%, the stock under
consideration has risk equal to 70% of the average market risK.
What should investor do?
A. Do not invest because real interest rate is higher than required rate
B. Invest because required rate is lower than real interest rate.
C. Do not invest because real interest rate is lower than required rate
D. Unsbecitied and no advice.
27. A Coupon bond with a face value of 100,000 dong is being sold at price of 98,750 dong.
Which of the following statements
A. b and care correct
B. Coupon yield < Current yield
C. Coupon yield > Yield to maturity
D. Coupon yield > Internal rate of return
28. Your company is considering to invest in a stock has an expected interest rate of 18%.
Treasury bill interest rate is 8%; market risk premium Is 15%• the stock has a beta ot 0.8.
What should vour company do?
A. invest because regured rate Is lower than real interest rate.
B. Do not invest because real interest rate is lower than required rate
C.Unspecified and no advice.
D. Invest because real interest rate Is nigner than regured rate
29. Which of the following assumptions does the one-stage growth model require?
A. Dividends grow at an inconstant rate
B. The required rate of return is lower than the dividend growth rate
C. All of the above
D. The dividend growth rate continues indefinitely
30. Which type of risk below is classified as non-systematic risk?
A. Default risk
B. Linflation risk
C. Legal risks
D. Reinvestment risk
31. A corporate bond has a face value of VND 100,000, paying interest once a year at the
end of each year. This bond has coupon yield of 9% per annum and a maturity of 6 years.
Issued price was 102,000 dong. Investor A bought this bond at the time of the issuance 3
vears ago and received interest three times. Currentl, investor A sells this bond at a price of
104,000 dong. Determine the internal rate of return on this investment.
A. 9.42%
B. 9%
C. 9.12%
D. 9.31%