Download Current Events Quiz #2 in FIN 4504: Understanding Financial Markets and Institutions - Pro and more Quizzes Finance in PDF only on Docsity! Name ________Answer Key_________________ Current Events Quiz #2 FIN 4504 Answer all questions. The first three questions are worth 1 point each, and the last question is worth 2 points. 1. According to Russell Kinnell, director of mutual fund research at Morningstar, the average annual expense ratio for funds offered by Amazon.com in its 401(k) plan in 2005 was 1.14%, while the average annual expense ratio for all U.S. stock funds is _____ . (a) 0.34% (b) 0.75% (c) 0.96% (d) 1.24% (e) 1.34% 2. Write down the names of the three largest banks in the U.S., both by total assets and by total market capitalization. Citigroup, JP Morgan, and Bank of America 5. A jumbo mortgage is a mortgage with a loan amount above a certain dollar value. Any loans that a bank makes above that amount cannot be sold to Fannie Mae or Freddie Mac. The current dollar value cutoff for a jumbo mortgage is ________ . (a) $257,000 (b) $307,000 (c) $367,000 (d) $417,000 (e) $537,000 4. The U.S. currently has the ______ statutory corporate tax rate (including state corporate taxes) of 39% compared with all other democratic OECD nations (a) second-lowest (b) fifth-lowest (c) median (d) fifth-highest (e) second-highest 5. In a recent Fortune article, Bill Gross says that you should buy bonds because __________. (a) they are currently trading at a 50 basis point discount (b) they have high yields compared to U.S. stocks (c) they have a lower beta than stocks (d) they are less volatile than stocks (e) foreign central banks will continue to prop up bond prices 6. According to a recent article that we read, what is Ben Stein’s recommended asset allocation? For each asset class below, write in the percentage that he says you should own. Make sure your weights add up to 100%. _20% U.S. equity large cap index fund that tracks an index like the S&P 500 _20% U.S. equity total market index fund that tracks an index like the Wilshire 5000 _20% international developed market index fund (ETF ticker is EFA) that tracks the EAFE index _12% international emerging market index fund (ETF ticker is EEM) that tracks the Morgan Stanley emerging markets index _4% U.S. real estate investment trust index fund (ETF ticker ICF) that tracks the Cohen and Steers realty major index of U.S. REITs _4% U.S. energy stock index fund (ETF ticker XLE) that tracks the an index of mostly large U.S. oil stocks _0% U.S. bond index fund (ETF ticker AGG) that tracks Lehman Aggregate _0% U.S. corporate bond fund (ETF ticker LQD) that tracks a Goldman index of corporate bonds _20% cash (more specifically a money market account or a CD)
