单选题While working on her report, Jean Paul, CFA, learns from her friend in the investment banking department that the company she is analyzing can expect a tender offer very soon. Concerning this conclusion, Paul can: A. trade on it, because she figured it out by herself. B. trade on it, because it is public information. C. not trade on it because it is material nonpublic information.
单选题The corporate income tax is an automatic stabilizer because:
单选题If the slope of the yield curve begins to rise sharply, it is usually an indication that: A. the rate of inflation is starting to increase or is expected to do so in the near future. B. stocks are offering abnormally high rates of return. C. the Fed has been aggressively driving up short-term interest rates.
单选题An analyst gathered the following information about a company:
Net profit margin
4%
Shareholders" equity
$1000000
Dividend payout ratio
33%
Total assets
$2500000
Net income
$180000
The company"s potential (sustainable) growth rate is closest to:
单选题A company sold its receivables but retains the risk associated with bad debts. When reviewing this company, a financial analyst would adjust the company" s debt-to-equity ratio and its accounts receivable turnover ratio:
Debt-to-equity Receivables turnover
①A. Upward Upward
②B. Downward Upward
③C. Upward Downward
单选题A company that prepares its financial statements in accordance with IFRS incurred and capitalized2 million of development costs during the year
单选题A silver futures contract requires the seller to deliver 5000 Troy ounces of silver. An investor sells one July silver futures contract at a price of $8 per ounce, posting a $2025 initial margin. If the required maintenance margin is $1500, the price per ounce at which the investor would first receive a maintenance margin call is closest to:
单选题Which of the following is zero when an economy is at full employment?
单选题Use the following information and the dividend discount model to find the value of GoFlower, Inc. "s, common stock?
Last year"s dividend was $ 3.10 per share.
The growth rate in dividends is estimated to be 10 percent forever.
The return on the market is expected to be 12 percent.
The risk-free rate is 4 percent.
Go Flower"s beta is 1.1.
单选题The 95 % confidence interval for the population mean based on a sample of 40 interest rates with a sample mean of 4% and a sample standard deviation of 15% is closest to:
单选题TheAll Faiths church is building a new church for $2 million on land acquired several years ago
单选题An analyst does research about derivative products. Which ofthe following will most likely decrease in value if the price of the underlying asset increases in value? A. A long position in put contract. B. A long position in future contract. C. A long position in call contract.
单选题Which of the following is least likely to be a valid function/characteristic of money? Money:
单选题James Investments is calculating an unweighted
(equally-weighted) index on a four stock portfolio. Use the following
information to calculate the value of the index using the geometric and
arithmetic mean.
Stock
Number of Shares
Initial Cost
Current Cost
A
100
5.00
5.00
B
1000
10.00
12.50
C
500
7.50
10.00
D
1500
5.00
8.00
Price using geometric
Price using arithmetic ①A.
1.426
1.295 ②B.
1.277
1.379 ③C.
1.277
1.295 A. ①B. ②C. ③
单选题The primary difference between the McCallum rule and the Taylor rule is that the McCallum rule follows the（ ）
单选题A company is considering building a distribution center on developed land it acquired more than ten years ago at a cost of $400000. The company estimates that the cost of putting in utilities, sewers, roads, and other such costs of preparing the land for the distribution center at $200000. Alternatively, the undeveloped land could be sold today to another company for $600000. If the company builds the distribution center, the cost of the land for capital budgeting purposes is closest to:
单选题In order to comply with the CFA Institute Standards, an analyst
should:
A. use only his own research in making investment recommendations, because
anything else would violate Standard Ⅰ (B), Independence and Objectivity.
B. use only his company's research when making investment recommendations
and use outside research for reports and analysis on stocks.
C. use outside research only after verifying its accuracy.
单选题An analyst forecasts that spot interest rates will increase more than
the increase implied by the current forward interest rates. Under these
circumstances:
A. the analyst should establish a bearish bond portfolio.
B. all bond positions earn the same return.
C. the analyst should establish a bullish bond portfolio.
单选题Which of the following is determined by the equilibrium between the demand for money and the supply of money?
单选题An analyst does research about aggregate demand. Aggregate demand of a country will least likely increase following with: A. increase in consumer expectations of future income. B. increase in capacity utilization. C. appreciation in the domestic currency.