ECON 4500                        Name_____________

Quiz #1                        January 12, 2001

1.      Malkiel has been associate with the ___________________ family of funds.

2.      There are _______ stocks in the Dow Jones Industrial Average.

3.      A call option is _______________________________________________.

Answer three (3) of the following five (5) questions:

1.  In a chapter titles "The Firm Foundation Theory of Stock Prices" Malkiel identifies four fundamental determinants of stock prices.  What the four determinants and what does he means by fundamental?

 2.      What is technical analysis?  Critically commitment.  How does Malkiel suggest you may use fundamental and technical analysis together?

 3.  What does Malkiel try to do in his book?  Why does he say "a blindfolded monkey throwing      darts at a newspaper's financial pages could select a portfolio that would do just as well as one carefully selected by the experts."?

 4.     Investors face risk.  What does this mean?  What are the kinds of causes and risks faced?  Explain.

 5.      There are several types of investments that investors can purchase.  What are they and in  general terms,      what can we say about them?