单选题On 1 January 2006, an institutional investor's portfolio is valued at $10000000. The investor wants to make a donation to charity on 31 December 2006, but does not want the year-end portfolio value to fall below $10000000. The expected annual return on the investor's existing portfolio is 10 percent with a variance of 144. If the investor wants a safety-first ratio of at least 0.5, the maximum amount the investor should plan to donate is closest to:

单选题Under the IASB Conceptual Framework, one of the qualitative characteristics of useful financial information is that different knowledgeable users would agree that the information is a faithful representation of the economic events that it is intended to represent

单选题John, CFA, act as Liaison between Ressole Financial and DHK Inc. (an investing bank). When DHK underwrites an IPO, John routinely has DHK issue vague statements implying that the firm has cash flows, financial resources, and growth prospects that are better than is the case in reality. This action is a violation of the section of the Standards concerning: A. fair dealing. B. non-public information. C. misconduct.

单选题Which of the following is least accurate regarding the allocative efficiency associated with price discrimination? Price discrimination: A. results in gains to the discriminating firm by selling to consumers with relatively inelastic demand. B. increases production closer to the quantity where price equals marginal cost. C. leads to a decrease in allocative efficiency.

单选题Jamal Winfield is an analyst with Stolzenbach Technologies, a major computer services company based in the U.S. Stolzenbach's management team is considering opening new stores in Mexico, and wants to estimate the cost of equity capital for Stolzenbach's investment in Mexico. Winfield has researched bond yields in Mexico and found that the yield on a Mexican government 10-year bond is 7.7 percent. A similar maturity U.S. Treasury bond has a yield of 4.6 percent. In the most recent year, the standard deviation of Mexico's All Share Index stock index and the S&P 500 index was 38 percent and 20 percent respectively. The annualized standard deviation of the Mexican dollar-denominated 10-year government bond over the last year was 26 percent. Winfield has also determined that the appropriate beta to use for the project is 1.25, and the market risk premium is 6 percent. The risk free interest rate is 4.2 percent. What is the appropriate country risk premium for Mexico and what is the cost of equity that Winfield should use in his analysis? Country Risk Premium for Mexico Cost of Equity for Project ①A. 4.53% 19.06% ②B. 5.89% 17.36% ③C. 4.53% 17.36%

单选题A company has operated at full capacity throughout the year, and a review of its inventory records for that period indicate that the following costs were incurred: Fixed production overhead $500,000 Direct material and direct labor $300,000 Storage costs incurred during production $25,000 Abnormal waste costs $30,000 The total capitalized costs to inventory during the year are closest to:

单选题Bob Thompson, CFA, is an analyst at Government Brokers, Inc., which is a brokerage firm specializing in government bond trading. Which of the following statements complies with the CFA Institute Code of Ethics and Standards of Professional Conduct? A. Thompson must notify Government Brokers, Inc. of his responsibility to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct. B. Thompson must be responsible for the ethical actions of other investment professionals in Government Brokers, Inc.. C. Thompson must practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession.

单选题A long-term bond is sold at a discount. In subsequent years cash flow from operations will be: A. understated. B. properly stated. C. overstated.

单选题In the futures market, the clearinghouse is least likely to:

单选题Fred Heyach and Gord Murdoll are discussing whether or not competitive markets use resources efficiently. Heyach says, "Competition must lead to the efficient allocation of resources. Consumers are willing to pay more for the goods they want most, so producers of those goods can outbid other producers for the resources to make them. Murdoll replies, "At any one point in time the market might allocate resources efficiently given consumers' preferences, but as consumers change their minds about which goods they want, the allocation of resources becomes inefficient. " Are these statements correct or incorrect? Heyach Murdoll ①A. Correct Incorrect ②B. Incorrect Correct ③C. Incorrect Incorrect A. ① B. ② C. ③

单选题Which of the following is the simplest way for a company to increase its reported operating cash flow? A. Record sales on a bill-and-hold basis. B. Slow down the rate of payment to suppliers. C. use a third party financial institution to pay suppliers.

单选题When calculating cash flow from operations (CFO) using the indirect method, which of the following is most accurate?

单选题An analyst has noticed lately that the price of a particular bond has risen less when the yield falls by 0.5% than the price falls when rates increase by 0.5%. He could include that the bond:

单选题For a capital lease, the amount recorded initially by the lessee as a liability will: A. be less than the total of the minimum lease payments. B. equal the present value of the minimum lease payments at the beginning of the lease. C. exceed the present value of the minimum lease payments at the end of the lease.

单选题The current price of XYZ Inc. is $40 per share with 1000 shares of equity outstanding. Sales are $ 4000 and the book value of the firm is $ 10000. What is the price/sales ratio of XYZ Inc. ? A. 0.010. B. 10.000. C. 4.000.

单选题Compared to a competitive market, a monopoly situation will produce: A. less output, and the sum of the consumer surplus and the producer surplus will be reduced. B. more output, and the sum of the consumer surplus and the producer surplus will be reduced. C. less output, and the sum of the consumer surplus and the producer surplus will be increased.

单选题Agora Systems Inc. has the following capital structure and cost of new capital:

单选题The best description of the general ledger is that it: A. groups accounts into the categories that are presented in the financial statements. B. shows if new entries need to be recorded and reflected in an adjusted trial balance. C. sorts the entries in the general journal by account.

单选题Consider a stock put option with the following characteristics: Type of option: put option on stock Underlying asset: 100 shares of Compaq Exercise price : $32.50 per share Premium : $4.00 per share Expiration date : November Expiration-day price of Compaq stock were $28.50 per share, which of the following would describe the expiration-day profit/loss for the investors in the Compaq put option?

单选题Kam Bergeron, CFA, is an equity portfolio manager who often takes time off in the afternoon to play golf with important clients