单选题An investor sells a bond at the quoted price of $98
单选题Two economists, Pearl Millidge and Byron Forrest, are discussing theories that explain why increased inflation causes nominal interest rates to rise. They offer the following explanations:
Millidge: Because businesses expect higher prices for their output in the future, they will expect a greater return on their investments and will increase their demand for financial capital, which will drive interest rates higher.
Forrest: Savers expect to pay higher prices for goods and services in the future, so they will be less willing to trade current consumption for future consumption and will therefore supply less financial capital, so interest rates increase.
Are these explanations correct?
Millidge Forrest
①A. Correct Correct
②B. Correct Incorrect
③C. Incorrect Correct
A. ①B. ②C. ③
单选题Which of the following statements about the risks associated with investing in bonds is least accurate ? A. Credit risk is the likelihood that an investor will be unable to sell the security quickly and at a fair price. B. Reinvestment risk is the uncertainty about the rate at which cash flows from the security can be reinvested. C. Volatility risk is the risk that the price of a bond with an embedded option will decline when expected yield volatility changes.
单选题An analyst has compiled the following information on a company:
￡
thousands
Beginning of the year values
Share capital
2,000
Retained earnings
8,850
During the year
Revenues
12,000
Total expenses
10,150
Proceeds from shares issued
500
End of year values
Total current assets
9,200
Total non-current assets
12,750
Investments
350
Total Iiabilities
9,400
The amount of dividends declared (￡thousands) during the year is closest to:
单选题The capital budgeting director of Green Manufacturing is evaluating a
laser imaging project with the following characteristics: Cost:
$150000 Expected life: 3 years After-tax cash flows: $ 60317
per year Salvage value : $ 0 If Green Manufacturing's cost
of capital is 11.5 percent, what is the project's internal rate of return (IRR)
?
A. $ 3875.
B. 2.49 years.
C. 10.0%.
单选题James Simone, CFA, the chief financial officer of a publicly listed company, seeks to improve the quality of his companys communication with institutional fund managers
单选题Which of the following could be a growth stock? A. Expected return = required return. B. Expected return ＜ required return. C. Expected return ＞ required return.
单选题Which of the following statements least accurately describes why firms
can coordinate economic activity more efficiently than markets? Firms can
achieve:
A. economies of scope.
B. diversification benefits.
C. economies of scale.
单选题Susan, CFA, is a portfolio manager. One of her firm's clients has told
Susan that he will compensate her beyond that provided by her firm on the basis
of the capital appreciation of his portfolio each year. Susan should:
A. turn down the additional compensation because it will result in conflicts
with the interests of other clients' accounts.
B. obtain permission from her employer prior to accepting the compensation
arrangement.
C. turn down the additional compensation because it will create undue
pressure on her to achieve strong short-term performance.
单选题Byron Campbell purchased 300 shares of Crescent, Inc. , stock at a
price of $80 per share. The purchase was made on margin with an initial margin
requirement of 50 percent. Assuming the maintenance margin is 25 percent, the
stock price of Crescent, Inc. has to fall below what level for Campbell to
receive a margin call?
A. $40.00.
B. $30.00.
C. $53.33.
单选题Selected information from a companys comparative income statement and balance sheet is presented below:
The cash collected from customers in 2013 is closest to:
单选题Concerning an ordinary annuity and an annuity due with the same payments and positive interest rate, which of the following statements is TRUE? A. There is no relationship. B. The present value of the ordinary annuity is equal to annuity due. C. The present value of the ordinary annuity is less than an annuity due.
单选题An analyst does research about Elliott Wave Theory. According to Elliott Wave Theory, markets follow wave pattems consisting of five impulse waves followed by: A. two corrective waves. B. three corrective waves. C. five corrective waves.
单选题After work each day, Shinichi Takada, CFA, runs a popular internet blog where he comments on micro-cap stocks. The blog includes a biography of Takada with his education and employment history. He receives no compensation for the blog. On the blog, Takada recommends purchases and sales of stocks based upon astrology. When blogging, Takada least likely violates CFA Institute Standards relating to.
单选题Which of the following statements about compounding and interest rates
is FALSE?
A. All else equal, the longer the term of a loan, the lower will be the
total interest you pay.
B. Compounding essentially means earning interest on interest.
C. Present values and discount rates move in opposite directions.
单选题A banker's acceptance that is priced at $99145 and matures in 72 days
at $100000 has a (n):
A. money market yield greater than its discount yield.
B. discount yield greater than its bond equivalent yield.
C. money market yield greater than its bond equivalent yield.
单选题Which of the following statements regarding zero-coupon bonds and spot interest rates is TRUE? A. Price appreciation creates all of the zero-coupon bond's return. B. Spot interest rates will never vary across the term structure. C. If the yield to maturity on a 2-year zero coupon bond is 6%, then the 2-year spot rate is 3%.
单选题Which of the following statements is most accurate in describing total surplus with respect to a product or service? A. Price minus marginal cost, summed over the quantity bought. B. Marginal benefit minus price, summed over the quantity bought. C. Marginal benefit minus marginal cost, summed over the quantity bought.
单选题Assuming that a company's ROE is 12% and the required rate of return is 10%, which of the following would most likely cause the company's P/E ratio to rise? A. The inflation rate falls. B. The firm's dividend payout rises. C. The firm's ROE falls.
单选题Which of the following statements about the basic functions of money
is TRUE?
A. When money is defined as a medium of exchange, it means that money
enables value to be stored and transported.
B. Money's value is directly related to the level of prices.
C. Money's function as a unit of account allows individuals to account for
debts.