单选题Chris Babcock, CFA, a portfolio manager for a large Texas investment firm, has been offered compensation in addition to what her firm pays her. The offer is from one of her clients and the additional compensation will be based on her yearly performance in excess of the market index. Babcock should : A. turn down the offer because it represents a clear conflict between this client and Babcock's other clients. B. make written disclosure to all parties involved before she accepts this offer. C. make written disclosure to her other clients before she accepts this offer.
单选题An analyst does research about characteristic of Exchange Trade Fund. Which of the following statements is least accurate? Exchange Trade Fund (ETF): A. may have large bid-ask spreads. B. can be sold or brought on margin. C. have lower exposure to capital gains tax distribution than traditional mutual fund.
单选题Assume that a firm had total revenue of $36 million and used $24 million in labor and materials to generate that revenue. Other costs included $300000 in foregone interest, economic depreciation of $5000, and normal profit is $43000. Using this information, calculate the economic profit to the firm.
单选题For an analyst evaluation the common stock of a financial institution that reported a small loss for the year ended 31, December 2008, the price multiple that is least likely to be meaningful is:
单选题Robert Necco and Nelson Packard are economists at Economic Research Associates. ERA asks Necco and Packard for their opinions about the effects of fiscal policy on real GDP for an economy currently experiencing a recession. Necco states that real GDP is likely to increase if both government spending and taxes are increased by the same amount. Packard states that if both government spending and taxes are increased by the same amount, there is no expected net effect on real GDP. Regarding the statements made by Necco and Packard: Necco Packard ①A. Correct Correct ②B. Correct Incorrect ③C. Incorrect Incorrect
单选题Which of the following concerning about the different types of bonds is FALSE?（ ）
单选题The price of a 90-day forward contract on a 90-day Treasury bill
will be:
A. above the current price of a 90-day T-bill.
B. above the current price of a 180-day T-bill.
C. either above or below the current price of a 180-day
T-bill.
单选题Which of the following is the most likely result of a technological improvement in a perfectly competitive industry?
单选题An analyst believes that EFG will pay a $1 dividend a year from now, and will be priced at $23 per share immediately following the dividend. The risk-free rate is 4%, and the analyst forecasts an expected market return of 12%. EFG has a beta of 0.75 and a current price of $ 22.
Based on this information:
单选题A market has the following limit orders standing on its book for a particular stock:
Buyer
Bid Size(# of shares)
Limit Price($)
Seller
Offer Size(# of shares)
Limit Price($)
1
500
18
单选题Selectedinformationaboutsharesoftwocompaniesisprovidedbelow:StockStandardDeviationCorrelationofReturns1PortfolioWeightsCableIncorporated30%0.6568%GPTACompany20%32%1CorrelationofreturnsbetweenCableIncorporatedandGPTACompany.Thestandarddeviationofreturnsoftheportfolioformedwiththesetwostocksisclosestto:
单选题Stephen, a trainee and CFA candidate, is in his first week with SKL Limited, a local brokerage house
单选题Consider the following two statements about putable bonds: Statement 1: As yields rise, the price of putable bonds will fall less quickly than similar option-free bonds (beyond a critical point) due to the increase in value of the embedded put option. Statement 2: As yields fall, the price of putable bonds will rise more quickly than similar option-free bonds (beyond a critical point) due to the increase in value of the embedded put option. Are these statements correct or incorrect? A. Statement 1 is correct and Statement 2 is incorrect. B. Both statements are incorrect. C. Statement 1 is incorrect and Statement 2 is correct.
单选题An accounts receivable aging schedule is best used to: A. compare a company's receivables management to those of a similar company. B. compare a company's receivables management to those of the average for its industry or for a group of peer companies. C. identify trends in how well the firm is doing at collecting receivables and converting them to cash.
单选题An in-kind redemption process is generally related to: Traditional open-end mutual funds? Exchange e traded funds? A. No No B. No Yes C. Yes No
单选题Which of the following are the two most important tools available to the Federal Reserve? A. Changing the discount rate and changing bank reserve requirements. B. Open market operations and changing bank reserve requirements. C. Changing the discount rate and open market operations.
单选题Which of the following statements regarding capitalizing versus expensing costs is least accurate? A. Total cash flow is higher with capitalization than expensing. B. Capitalization results in higher profitability initially. C. Expensing results in higher income variability than capitalization.
单选题Lynne Hampton purchased 100 shares of $75 stock on margin. The margin
requirement set by the Federal Reserve Board was 40 percent, but Hampton's
brokerage firm requires a total margin of 50 percent. Currently the stock is
selling at $62 per share. What is Hampton's return on investment before
commission and interest if she sells the stock now?
A. -17%.
B. -35%.
C. -40%.
单选题In a CFA study seminar, the following comments were made: Comment 1: "In the short run, an increase in demand in a perfectly competitive industry will result in negative economic profit for some firms in the industry. " Comment 2: "In the long run, a permanent increase in demand in a perfectly competitive industry will result in zero economic profit for the firms in the industry. " Which of the following best describes the accuracy of these comments? Comment 1 Comment 2 ①A. Correct Correct ②B. Correct Incorrect ③C. Incorrect Correct
单选题Aninvestorgathersthefollowingdataaboutacompany:ThecompanysjustifiedforwardP/Eisclosestto: