TrendUp Investment Knowledge Quiz

Quiz Questions

• 1.
  Which of the following allows you to buy shares, in the stock market, of a fund that tracks a stock index, such as the S&P 500? 

  • A.
    REIT
  • B.
    ETF
  • C.
    MLP
  • D.
    ADR
• 2.
  If I buy 100 shares of a stock at $20 each and I then sell them at $40 a month later, how much will I have made? (assuming no commissions)

  • A.
    $100, a 50% return
  • B.
    $100, a 100% return
  • C.
    $50, a 50% return
  • D.
    A loss of $50 (-50% return)
• 3.
  When tracking insider trading in a stock, which of the following is generally more significant?

  • A.
    Share purchase by director
  • B.
    Share purchase by executive
  • C.
    Share sale by director
  • D.
    Option exercise by executive
• 4.
  If the markets were to crash tomorrow, which of the following would experience less of a fall?

  • A.
    Micro-cap stocks
  • B.
    Mega-cap stocks
  • C.
    Mid-cap stocks
  • D.
    Gold
• 5.
  Which RSI reading suggest overbought conditions?

  • A.
    RSI of 50
  • B.
    RSI of 90
  • C.
    RSI of 20
  • D.
    RSI between 40 and 70
• 6.
  Which of the following scenarios suggest that analysts are bullish on a stock’s future earning prospects?

  • A.
    P/E ttm > Forward P/E
  • B.
    P/E ttm < Forward P/E
  • C.
    P/E < P/B
  • D.
    P/E > P/B
• 7.
  Which of the following is most attractive for an income investor?

  • A.
    A stock with a 3% dividend yield and a dividend payout of 170%
  • B.
    A stock with an 18% dividend yield and a dividend payout of 170%
  • C.
    A stock with a 3% dividend yield and a dividend payout of 60%
  • D.
    A stock with an 18% dividend yield and a dividend payout of 60%
• 8.
  Which of the following is true of the VIX?

  • A.
    It tracks the volume of the S&P 500
  • B.
    Its average reading historically has been around 40
  • C.
    It tends to spike during bull markets and fall during bear markets
  • D.
    Tends to be mean-reverting
• 9.
  If, to collect some premium, you’re taking on the obligation to buy 100 shares from someone at a certain price by a certain date, you have probably:

  • A.
    Bought a call option
  • B.
    Bought a put option
  • C.
    Sold a call option
  • D.
    Sold a put option
• 10.
  A long call option has:

  • A.
    Positive theta, positive delta
  • B.
    Positive theta, negative delta
  • C.
    Negative theta, positive delta
  • D.
    Negative theta, negative delta
• 11.
  Let’s say you buy a stock’s $20 put and its $40 call, and, at the same time, you sell its $15 put and the $45 call. Which strategy is this?

  • A.
    Bullish Debit Vertical
  • B.
    Bearish Credit Vertical
  • C.
    Neutral Risk Reversal
  • D.
    Iron Condor
• 12.
  In a hedge fund, the manager has stated that, before the managers make any performance money, their returns will need to be at least as high as the S&P 500’s return. If that happens, the managers will then be entitled to receive performance pay on any percentage return. In hedge fund parlance this is known as:

  • A.
    High watermark
  • B.
    Low watermark
  • C.
    Hard hurdle
  • D.
    Soft hurdle
• 13.
  In Crude Oil futures, the spot price is $40 while the futures contract 2 months out is $31. This situation is known as:

  • A.
    Spot-reversal
  • B.
    Backwardation
  • C.
    Contango
  • D.
    Spot-inverted

Quiz Outcomes

• 1.
  L1 Recommendation

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  You are on the right track, and we are here to help! The L1 course is designed to help you master strategic investment decisions, whether you are looking to develop your own investing skills or to land a job in Finance. In L1, you will get 1-on-1 time with the hedge fund manager, live group activities, actionable content, a certificate, and more.Successful completion of all L-courses can lead to potential letters of recommendation, career opportunities at our own hedge funds, or referrals to other companies.
• 2.
  L1 Recommendation

  Image Source

  You are on the right track, and we are here to help! The L1 course is designed to help you master strategic investment decisions, whether you are looking to develop your own investing skills or to land a job in Finance. In L1, you will get 1-on-1 time with the hedge fund manager, live group activities, actionable content, a certificate, and more.Successful completion of all L-courses can lead to potential letters of recommendation, career opportunities at our own hedge funds, or referrals to other companies.
• 3.
  L2 Recommendation

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  Great job! Your skills align with the TrendUp Now L2 course.L2 teaches you how to set up and design complex trades so that you can maximize your profit while limiting your risk. In L2, you will get 1-on-1 time with the hedge fund manager, a live group session, trading challenges, the opportunity to have your investment research article published (on Seeking Alpha, XSPA, etc), a certificate, and more. That said, we do recommend completing the entire L-course program starting from L1. This ensures that you not only have a solid foundation in investments but also get more opportunities to build a stronger relationship with our hedge fund professionals. If you choose to enroll in L2, you will be taking an L1 assessment included in the L2 price.Successful completion of all L-courses can lead to potential letters of recommendation, career opportunities at our own hedge funds, or referrals to other companies.