单选题With respect to the Standards relating to preservation of confidentiality, which of the following statements is least accurate? Members and candidates must keep information about all former current, and prospective clients confidential unless : A. the information concerns illegal activities on the part of the clients. B. disclosure is required by firms' policies. C. the clients permit disclosure of the information.
单选题Assume that you are analyzing a plain vanilla interest rate swap with the following characteristics : Counterparty X Counterparty Y pay fixed rate 6% pay floating rate LIBOR + 0.5% receive floating rate LIBOR +0.5% receive fixed rate 6% Swap tenor: 10 years National principal: $1000000 LIBOR : 4.75% Which of the following is the first floating rate payment made by Counterparty Y?
单选题How is the relative frequency of an interval computed? A. Subtracting the lower limit of the interval by the upper limit. B. Dividing the frequency of that interval by the sum of all frequencies. C. Multiplying the frequency of the interval by 100.
单选题An investor will receive an annuity of $ 5000 a year for seven years. The first payment is to be received 5 years from today. If the annual interest rate is 11.5 percent, what is the present value of the annuity?
单选题A BBB rated corporation wishes to issue debt to finance its operations at the lowest cost possible
单选题The short-run supply curve for a firm in a perfectly competitive
market is equal to the firm's:
A. ATC curve.
B. AVC curve.
C. MC curve.
单选题There are several types of external credit enhancements. All of the following are examples of external credit enhancements EXCEPT:
单选题Bailey Watson, CFA, manages 25 emerging market pension funds
单选题If quantity demanded declines 20 percent when incomes fall 3 percent,
this good is:
A. a luxury good.
B. a necessity.
C. an inferior good.
单选题If the effects are fully anticipated, what impact is expansionary
monetary policy most likely to have on real economic activity?
A. Little or no impact.
B. Large expansionary impact.
C. Moderate expansionary impact.
单选题Would projecting future financial performance based on past trends provide a reliable basis for valuation of the following firms? Firm 1: A rapidly growing company that has made numerous acquisitions and divestitures. Firm 2: A large, well-diversified, company operating in a number of mature industries.
Firm 1 Firm 2
①A. No No
②B. No Yes
③C. Yes Yes
单选题Is the true risk of losses of hedge funds using arbitrage strategies most likely to be understated if that risk is measured by: Standard deviation? Traditional value at risk(VaR) measures? ①A. No No ②B. Yes Yes ③C. Yes No
单选题For a certain class of junk bonds, the probability of default in a given year is 0.2. Whether one bond defaults is independent of whether another bond defaults. For a portfolio of five of these junk bonds, what is the probability that zero or one bond of the five defaults in the year ahead?
单选题What is the net income of a firm that has a return on equity of 12 percent, an equity muhiplier of 1.5, an asset turnover of 2, and revenue of $1 million?
单选题Which of the following government interventions in market forces is most likely to cause overproduction?
单选题An analyst does research about well-function financial systems. In a well-functional securities market, if the prices of the assets and contracts reflect all available information related to fundamental values, the financial systems are best described as: A. complete markets. B. operationally efficiency. C. informationally efficiency.
单选题Which of the following statements is most correct concerning a member's obligation to his or her employer under the Code and Standards? A. Consent from the employer is necessary to permit independent practice that could result in compensation or other benefits in competition with the member's employer. B. Members are prohibited from making arrangements or preparations to go into competitive business before terminating their relationship with their employer. C. Members are prohibited from undertaking independent practice in competition with their employer.
单选题Assume the following information for a stock: Beta coefficient = 1.50 Risk - free rate = 6% Expected rate of return on market = 14% Dividend payout ratio = 30% Expected dividend growth rate = 11% The estimated earnings multiplier (P/E ratio) is closest to: A. 10.00. B. 3.33. C. 4.29.
单选题Which of the following statements about the indirect method of calculating the statement of cash flows is FALSE? A. No adjustment is needed to account for changes in accounts receivable since no cash was involved. B. No adjustment is needed to account for extraordinary items because they are found above net income and are thus already accounted for. C. Depreciation is added back to net income since it is an expense not requiring cash.
单选题The following information is available for a firm