单选题An analyst does research about the Z-spread and nominal spread. Assume the Treasury spot-rate yield curve is upward slopping, compared to the nominal yield spread between a Treasury bond and an option-free corporate bond of similar maturity, Z-spread will be: A. less than the nominal spread. B. equal to the nominal spread. C. greater than the nominal spread.

单选题On 1 January 2004, the value of an investor's portfolio is $ 89000. The investor plans to donate $ 4000 to charity organization and pay $ 2000 to his insurance account on 31 December of 2004, but meanwhile he does not want the year-end portfolio value to be below $ 89000. If the expected return on the existing portfolio is 12 percent with a variance of 125, the safety-first ratio that would be used to evaluate the portfolio based on Roy' s criterion is closest to:

单选题An investor invested $ 10000 into an account five years ago. Today, the account value is $18682. What is the investor's annual rate of return on a continuously compounded basis?

单选题When an investor can borrow and invest at the risk-free rate, which of the following statements is least likely valid? A. The capital market line (CML) is straight. B. Investors who borrow the risk-free asset to lever their portfolio will move their portfolios to the right of the market portfolio on the CML. C. The x-axis measurement of risk is the standardized covariance.

单选题As the number of compounding periods increases, what is the effect on the EAR? A. EAR does not increase. B. EAR increases at a decreasing rate. C. EAR increases at a constant rate.

单选题A firm has $100 in equity and $ 300 in debt. The firm recently issued bonds at the market required rate of 9 percent. The firm's beta is 1.125, the risk-free rate is 6 percent, and the expected return in the market is 14 percent. Assume the firm is at their optimal capital structure and the firm's tax rate is 40 percent. What is the firm's weighted average cost of capital (WACC)?

单选题Given the following income statement:

单选题Which of the following statements regarding the terms population and sample is least accurate? A. Observing all members of a population can be expensive or time consuming. B. A sample includes all members of a specified group. C. A sample's characteristics are attributed to the population as a whole.

单选题During 2013

单选题During an onsite company visit, Marsha Ward, CFA, accidentally overheard the Chief Executive Officer (CEO) of Stargazer, Inc. discussing the company's pending offer to purchase Dynamica Enterprises, a retailer of Stargazer products. According to the Standards of Practice Handbook, Ward may not use the information to take investment action because: A. the information relates to an offer. B. she does not have a reasonably and adequate basis for taking investment action. C. acting on the information would breach a duty to both Stargazer and Dynamica.

单选题Consider the following descriptions of approaches used in valuing real estate: Approach 1: In this approach, the present value of after-tax cash flows are calculated based on the investor's required rate of return before the equity portion of the investment is deducted. Approach 2: In this approach, the value of land is estimated and is added to the price that would have to be paid if a property had to be replaced. Approach 3: In this approach, an appraisal price is estimated as the discounted net operating income based on the market required rate of return. Approach 4: This approach relies on examining recent transaction prices from a group of similar properties and depends on a reasonably liquid market. List in order, from Approach 1 to Approach 4, the real estate valuation methods that correspond to each of the four valuation approaches listed above. A. The discounted after-tax cash flow model, the cost method, the income method, and the sales comparison method. B. The income method, the cost method, the sales comparison method, and the discounted after-tax cash flow model. C. The income method, the discounted after-tax cash flow model, the sales comparison method, and the cost method.

单选题The liquidity preference theory holds that:

单选题Which of the following about the description of the security market line (SML) is false? A. The SML will shift downward in a parallel fashion if inflation expectations increase. B. The SML will shift upward in a parallel fashion if capital markets tighten. C. The SML will rotate counterclockwise if risk perception increase.

单选题An analyst gathered the following information about spot rates and a coupon bond (all rates are annual) issued by Farrili Corporation: Spot rate, six-month aero coupon bond 7.0% Spot rate, one-year zero coupon bond 8.0% One year risk-free rate 6% Price for one-year, 9% coupon bond $1010 (semiannual payments, par value $1000) Using the arbitrage-freed approach to valuing bonds, the coupon bond is: A. overvalued. B. properly valued. C. undervalued.

单选题Which of the following most accurately describes society's allocation of resources to the production of goods with external costs or external benefits? External costs External benefits ①A. Over-allocation Over-allocation ②B. Under-allocation Under-allocation ③C. Over-allocation Under-allocation A. ① B. ② C. ③

单选题Which of the following statistical properties is most accurate if an estimator becomes more accurate as the sample size increases? A. unbiased. B. efficient. C. consistent.

单选题According to International Financial Reporting Standards, which of the following conditions should be satisfied in order to report revenue on the income statement?

单选题An analyst does research about spot and forward rate. The 4-year spot rate is 9.45%, and the 3-year spot rate is 9.85%. What is the l-year forward rate 3 years from today? A. 8.3% B. 8.7% C. 9.4%

单选题Jasper Quartermaine is interested in using the options market to create "insurance" against a severe drop in the value of a stock portfolio that he owns. How could he best accomplish this goal and what is this type of strategy called? Type of option Strategy ①A. write call options protective put ②B. write call options covered call ③C. buy put options protective put

单选题An investor writes a covered call on a $40 stock with an exercise price of $50 for a premium of $2. The investor's maximum: