Online Access Free CSC2 Exam Questions

For buy-side institutional investors, what is the purpose of algorithmic trading?

• A.To consolidate a large number of individual trades into a single trade to reduce the market impact.
• B.To optimize the order execution of a large block of shares by breaking it up into smaller trades.
• C.To optimize the order execution of small trades.
• D.To reduce overall trading order execution costs.

Soft-dollar arrangements can be used for which type of service?

• A.Underwriting.
• B.Research.
• C.Sales.
• D.Advice.

What is the normal shape of a yield curve?

• A.Downward slope
• B.inverted
• C.Upward slops
• D.Humped

What is the main pitfall of closet indexing for investors?

• A.Investors must take greater risks due to a high portfolio beta.
• B.High portfolio turnover makes it unsuitable for taxable accounts
• C.passively management fund can be marketed as actively managed.
• D.The portfolio does not closely resemble the benchmark index.

What is a characteristic of trend analysis?

• A.The method can be used if a loss was sustained in the base year.
• B.Trend lines can be misleading if the base period is not truly representative.
• C.The method is limited to internal comparison of the same ratios collected from the same company in different years.
• D.Trend ratio calculations are more difficult to interpret than calculating percentage changes from year to year.