单选题Which of the following packages of securities is equivalent to a three-year 8 percent coupon bond with semi-annual coupon payments and a par value of 1007 A three-year zero-coupon bond: A. with a par value of 150 and six 8% coupon bonds with a maturity equal to the time to each coupon payment of the above bond. B. with a par of 100 and three zero-coupon bonds with a par value of 4 and maturities equal to the time to each coupon payment of the coupon bond. C. with a par of 100 and six zero-coupon bonds with a par value of 4 and maturities equal to the time to each coupon payment of the coupon bond.
单选题Ifacompanychoosestocapitalizeanexpenditurerelatedtocapitalassetsinsteadofexpensingit,ignoringtaxes,thecompanywillmostlikelyreport:
单选题Holding all other factors constant, an increase in yield volatility will cause the price of a (n) :
单选题Keith, CFA, has been invited to join a group of analysts in touring the riverboats of A ＆ K Limited. Since commercial flight schedules are inconvenient and not practical for the group's time schedule, A ＆ K Limited has arranged chartered flights from casino to its location. A ＆ K Limited has also arranged to pay the hotel bill for the three nights of the tour. The trip is purely business. According to AIMR Standards of Professional Conduct, Keith should: A. as the arrangements are inappropriate, decline to accept the trip. B. offer to pay for his share of the airfare and his own hotel bill. C. accept the flight, but pay his own hotel bill.
单选题A depreciable asset with a 4-year useful life and no residual value was bought on 1 January 2011 for $20000. Depreciation in Year 2 is the highest under the: A. straight-line method. B. 125% declining balance. C. 175% declining balance.
单选题You believe that the likelihood of bankruptcy is 30% for Rusty Roof Supply. You also believe that Home Pedot has a 20% of entering bankruptcy. You believe that the two events are independent. What is the probability that at least one of the companies will enter bankruptcy?
单选题If the U. S. Federal Reserve sells government securities in the open market, the most likely result is an increase in: A. real GDP. B. interest rate. C. aggregate demand.
单选题All of the following are considered a potentially dilutive securities EXCEPT:
单选题A company's optimal capital budget is best described as the amount of new capital required to undertake all projects with an internal rate of return greater than the:
单选题Which of the following is the least appropriate method for an external analyst to use to estimate acompanys target capital structure for determining the weighted average cost of capital (WACC)?
单选题The Fed operationalizes its goals by focusing on:
单选题Thedurationandconvexityofanoption-freebondpricedat$90.25are10.34and151.60,respectively.Ifyieldsincreaseby200bps,thepercentagechangeofthepriceisclosestto:
单选题Which of the following statements is most accurate? A. Forward contracts require that both parties to the transaction have a high degree of creditworthiness. B. Forward contracts are marked to market daily. C. Futures contracts have more default risk than forward contracts.
单选题Usingthecompanysincomestatementpresented,itsdegreeofoperatingleverageisclosestto:IncomeStatement$millionsRevenues9.8VariableOperatingCosts7.2FixedOperatingCosts1.5OperatingIncome1.1Interest0.6TaxableIncome0.5Tax0.2NetIncome0.3
单选题Which of the following would result in a wider confidence interval?
单选题Susan's company is participating in an investment analysis project. Her manager gave her a report from another company's analyst, also working on the project, and told her to put it on company letterhead and distribute the report by the end of the day. Being an AIMR member, which of the following AIMR Standards of Professional Conduct will she probably have broken if Susan complies with her manager instruction? A. Ⅳ (A) Research Reports. B. Ⅳ (B) Portfolio Investment Recommendations and Actions. C. Ⅱ (C) Prohibition against Plagiarism.
单选题A portfolio manager is looking at an investment that has an expected annual return of 10% with a standard deviation of annual returns of 5%. Assuming the returns are approximately normally distributed, the probability that the return will exceed 20% in any given year is closest to:
单选题Which of the following is the best description of the financial statement analysis framework? A. Gather data, analyze and interpret the data, determine the context, report the conclusions, update the analysis. B. Process and analyze the data, interpret the context, determine the objective, report the recommendations. C. State the objective and context, gather data, process the data, analyze and interpret the data, report the conclusions or recommendations, update the analysis.
单选题Magmyre Investments, Ltd. , hold two bonds: a callable bond issued by
Mudd Manufacturing Inc. and a put-able bond issued by Precarious Builders. Both
bonds have option adjusted spreads (OAS) of 135 basis points (bp). Kevin Grisly,
a junior analyst at the firm, makes the following statements (each statement is
independent). Apparently, Grisly could benefit from a CFA review course, because
the only statement that could be accurate is:
A. Given a nominal spread for Precarious Builders of 110 bp, the option cost
is -25 bp.
B. The cost of the call option on the Mudd bond is - 15bp.
C. The spread over the spot rates for a Treasury security similar to Mudd's
bond is 145 bp.
单选题Compared to firms that expense costs, firms that capitalize expenses will have: