单选题Relative to traditional investments
单选题The stock is selling at $ 40, a 3-month put at $ 50 is selling for $11, a 3-month call at $ 50 is selling for $1, and the risk-free rate is 6 percent. How much, if anything, can be made on an arbitrage?
单选题Which of the following statements is most accurate about the responsibilities of an auditor for a publicly traded firm in the United States? The auditor must:
单选题Which of the following is least likely an indicator of impairment? A. Large cost overruns. B. Negative changes in the business climate. C. The market value of an asset appreciates unexpectedly.
单选题The values of nearly all bond market indexes are calculated using which of the following conventions for pricing and weighting, respectively?（ ）
单选题An analyst collects the following spot rates, stated as annual BEYs: 6-month spot rate =6%. 12-month spot rate =6.5%. 18-month spot rate =7%. 24-month spot rate =7.5%. Given only this information, the value of a 2 -year, semiannual-pay, 10% coupon bond with a face value of $1000 is closest to:
单选题Which of the following is the reason why credit spreads between high
quality bonds and low quality bonds widen during poor economic conditions?
A. indenture provisions.
B. interest risk.
C. default risk.
单选题Which principle requires that cost of goods sold be recognized in the same period in which the sale of the related inventory is recorded?
单选题Why are payments NOT usually netted out in a currency swap? A. There are no payments in a currency swap except at initiation and maturity. B. The notional principal is not swapped at initiation. C. The payments are denominated in two different currencies.
单选题A domestic investor is purchasing foreign bonds. Which of the following statements regarding the exchange rate risk and price movement of the asset is most accurate? A. The depreciation of both the asset and the foreign currency benefits the domestic investor. B. The appreciation of both the asset and the foreign currency benefits the domestic investor. C. The appreciation of the asset and the depreciation of the foreign currency benefit the domestic investor.
单选题There is an 80 percent chance of rain on each of the next six days. What is the probability that it will rain on exactly two of those days?
单选题Lisa Hajak, CFA, specialized in research on real estate companies at Cornerstone Country Bank for20 years
单选题Wreathfield, Inc. is choosing between two mutually exclusive projects. The cash flows for the two projects are below. The firm has a cost of capital of 10%, and the risk of the projects is equivalent to the average risk of the firm.
0
1
2
3
4
5
6
A：
-12000
4000
5000
6000
B：
-20000
3000
3000
3000
5000
8000
8000 The internal rate of return (IRR) of projects A and B respectively are closest to: Project A Project B ①A. 11.22% 10.50% ②B. 12.33% 14.26% ③C. 11.22% 14.26% A．① B．② C．③
单选题An analyst gathered the following information about a perpetual preferred stock and a common stock issued by the same company
Par value of preferred stock(per share)
$ 100
Dividend rate for preferred stock
7%
Required rate of return on preferred stock
12%
Last dividend paid or common stock(per share)
$3.00
Constant growth rate for common stock dividend
5%
Required rate of return on common stock
15% The values of a share of the company's preferred stock and common stock, respectively are closest to Value of preferred stock Value of common stock A. $ 58 $ 29 B. $ 58 $ 32 C. $ 85 $ 29
单选题A firm is expected to have four years of growth with a retention ratio of 100 percent. Afterwards the firm"s dividends are expected to grow 4 percent annually, and the dividend payout ratio will be set at 50 percent. If earnings per share (EPS)=$2.4 in year 5 and the required return on equity is 10 percent, what is the stock"s value today?
单选题As the director of capital budgeting for Denver Corporation, an analyst is evaluating two mutually exclusive projects with the following net cash flows:
Year
Project X
Project Y
0
-$100000
-$100000
1
$50000
$10000
2
$40000
$30000
3
$30000
$40000 If Denver's cost of capital is 15 percent, which project should be chosen? A. Project X, since it has the higher IRR. B. Neither project. C. Project Y, since it has the higher IRR.
单选题An asset manager, a CFA charterholder, manages small-cap portfolios for institutional clients. The manager is convinced, given the deteriorating economic conditions, that as a group, small-cap equities will underperform during the next 12 months. To preserve her client's wealth, the manager buys large-cap equities that he believes are better positioned to weather the expected economic downturn. The manager provides complete disclosure of these trades to his clients after the purchase. Has the manager violated any CFA Institute Standards of Professional Conduct?
单选题A capital project with a net present value (NPV) of $23.9 has the following cash flows:
单选题Howard is trying to decide which of the following composite definitions, submitted by his junior analysts, would be considered a viable composite according to GIPS. Which composite will meet the Standards?
单选题During a period of rising prices a company may change from LIFO to FIFO to: A. takes advantage of tax deferrals and reduce overall taxes paid. B. increase COGS and, hence, increase the overall cash flow position of the firm. C. increase reported inventory and, hence, improve various accounting constructs such as working capital.