Posted: September 18th, 2017

Investment Test

Questions about the Blackrock funds are based on information located at the following websites:

http://www.blackrock.com/investing/products/227502/blackrock-small-cap-growth-equityclass-a-fund

http://www.blackrock.com/investing/products/227554/blackrock-high-yield-bondclass-a-fund

 

QUESTION 1

1. Managers of the Blackrock Small Cap Growth Equity Fund are prohibited from buying shares and then selling the same shares within a year. In other words high portfolio turnover is prohibited.

 

True

False

 

QUESTION 2

1. Managers of the BlackRock High Yield Bond Portfolio are able to invest in non-dollar denominated bonds.

 

True

False

 

QUESTION 3

1. Since U.S. Treasury securities are guaranteed by the government of the United States; a rise in interest rates will not affect the value of the US Treasury component of the BlackRock High Yield Bond Portfolio.

 

True

False

 

QUESTION 4

1. If interest rates rise, the value of the BlackRock High Yield Bond Portfolio will most likely decline.

 

True

False

 

QUESTION 5

1. The benchmark index for the Blackrock Small Cap Growth Equity Fund is the Standard and Poor’s 500 Index.

 

True

False

 

QUESTION 6

1. The yield spread between Baa rated bonds and Aaa bonds increased from 89 basis points to 309 basis points between June 2006 and November 2008.

True

False

 

QUESTION 7

1. According to the 2015 Q1 fact sheet for the Blackrock Small Cap Growth Equity Fund, the fund was more diversified than its benchmark.

 

True

False

 

QUESTION 8

1. As of May 29^th, 2015, 1.48% of the Blackrock Small Cap Growth Equity Fund’s assets were invested in the common stock of JetBlue Airways Corp.

 

True

False

 

QUESTION 9

1. The objective of the managers of the Blackrock Small Cap Growth Equity Fund is to invest in common stock that pays a dividend yield that is higher than the 30 year yield on BB rated corporate bonds.

 

True

False

 

QUESTION 10

1. Taking into account sales charges the average annual total return on the Blackrock Small Cap Growth Equity Fund for the last ten years has been smaller than the fund’s benchmark.

 

True

False

 

 

QUESTION 11

1. If the securities held by the BlackRock High Yield Bond Portfolio become less liquid this will have a negative effect on the return of the fund.

 

True

False

 

QUESTION 12

1. Thirty percent of the assets of the Blackrock Small Cap Growth Equity Fund are in the technology sector.

 

True

False

 

QUESTION 13

1. The BlackRock High Yield Bond Portfolio invests only in bonds that are rated above BBB by Standard and Poor’s.

 

True

False

 

 

QUESTION 14

1. Since the financial crisis of 2008 managers of the BlackRock High Yield Bond Portfolio are not able to invest in mortgage-backed securities.

 

True

False

QUESTION 15

1. When a market is efficient the prices in the market will eventually reflect all available information. Some markets are more efficient than others and information I more readily reflected in asset prices.

True

False

 

 

QUESTION 16

1. The objective of the managers of the Blackrock Small Cap Growth Equity Fund is to invest in common stock that offer the chance of short term capital appreciation.

 

True

False

 

 

 

 

 

 

QUESTION 17

1. The BlackRock High Yield Bond Portfolio invests primarily in non-investment grade bonds with maturities of two years or less.

 

True

False

 

QUESTION 18

1. The percent calendar year return (ignoring sales charges) for the Investor A class shares of the Blackrock Small Cap Growth Equity Fund was 44.95% in 2013 and 2.11% in 2014.

 

True

False

 

QUESTION 19

1. Managers of the Black Rock Small Cap Growth Equity Fund believe that the stock market is perfectly efficient. This explains their investment strategy.

True

False

 

QUESTION 20

1. As of May 29th, 2015, .78% of the Blackrock Small Cap Growth Equity Fund’s assets were invested in the common stock of SKECHERS U.S.A., INC.

 

True

False

 

QUESTION 21

1. The objective of the BlackRock High Yield Bond Portfolio is to minimize risk and earn a 2% spread above 10 year treasury securities.

 

True

False

 

QUESTION 22

1. What would you expect to have happened to the spread between yields on commercial paper and Treasury bills immediately after September 11, 2001?

		No change, as both yields will remain the same.
		Increase, the spread usually increases in response to a crisis.
		Decrease, the spread usually decreases in response to a crisis.
		No change, as both yields will move in the same direction.