单选题Providing information about the performance of a company, its financial position, and changes in financial position that is useful to a wide range of users is most accurately described as the role of:
单选题Among a company's price to earnings (P/E), price to sale (P/S), and
price to cash flow (P/CF) ratios, it is most accurate to state that P/E ratios
are generally more stable from period to period than:
A. P/S ratios but not P/CF ratios.
B. P/CF ratios but not P/S ratios.
C. neither P/S ratios nor P/CF ratios.
单选题An investor purchases 200 shares of Merxx on margin. The shares are trading at $40. Initial and maintenance margins are 50 percent and 25 percent. If the investor sells the stock when the price rises to $50 at year-end, the return on the investment would be closest to:
单选题The least accurate statement about measures of dispersion for a distribution is that the（ ）
单选题An analyst does research about retirement plan. An individual retiring today requires an annual income of $12 million. Inflation is expected to be 3.5% per year for the first ten year, followed by 4.5% per year thereafter. The annual income requirement in 25 years from today for this individual is closest to: A. $31.22 million. B. $32.76 million. C. $36.07 million.
单选题Buying an interest-rate cap and selling an interest-rate floor is equivalent to:
单选题The annual cost of trade credit assuming a 365-day year for terms 3/10 net 40 is closest to:
单选题Which of the following statements best describes a trial balance? A trial balance is a document or computer file that:
单选题An investor does research about margin transaction and gathers the following information about the purchase of 1000 shares on the margin in which maximum amount allowed is borrowed. The purchase price is $18.50 and the initial margin requirement is 45%. The annual margin interest rate is 8.5%. The commission on purchase and sale is $35. One year later, the investor receives a dividend of $0.40 per share sells the shares for $26.50 per share. The rate of return on margin transaction is closest to: A. 80.1% B. 89.7% C. 90.1%
单选题According to the Global Investment Performance Standards (GIPS), which of the following is not a part of the verification process? A. Verification to be undertaken by the firm's compliance department. B. To test whether firm has complied with all the composite construction requirements. C. To test whether the firm's process and procedures are designed to calculate results in compliance with GIPS standards.
单选题Foreign currency translation adjustments are most likely reported in the company's:
单选题Michael Papis, CFA, is a chief investment officer of Assess Capital Management and manages several high-net-worth individual clients. Papis is responsible for presenting annual composite performance report for his managed accounts to his clients and prospective clients. In evaluating which accounts to include, he analyzes each of his managed accounts quarterly and picks those that have outperformed the benchmark to include in the composite performance report. Papis has least likely violated the Standards of Professional Conduct relating to: A. independence and objectivity. B. misrepresentation. C. performance presentation.
单选题An analyst conducted a significance test to determine if the relationship between two variables was real or the result of chance. His null hypothesis is that the population correlation coefficient is equal to zero and his alternative hypothesis is that the population correlation coefficient is different from zero. He developed the following information:
value of the test statistic
2.80
critical value at the 0.05 significance level
1.96
critical value at the 0.01 significance level
2.58 The analyst conducted a: A. one-tailed test and can reject his null hypothesis. B. two-tailed test and can reject his null hypothesis. C. two-tailed test and cannot reject his null hypothesis.
单选题The dollar discount on a U.S
单选题Which of the following statements represents information at a specific point in time?
单选题For the year ended December 31,2007, Milan Company reported the following financial information : Gross profit from sales 600000 Operating expenses 100000 Unrealized loss from foreign currency translation 30000 Dividends received from available-for-sale securities 15000 Increase in minimum pension liability 45000 Interest expense 25000 Acquired treasury stock for $ 25000 more than original book value 75000 Unrealized gain from available-sale-securities 20000 Ignoring taxes, calculate Milan' s net income and comprehensive income for 2007. Net income Comprehensive income ①A. $ 490000 $ 435000 ②B. $ 490000 $ 2000 ③C. $ 40000 $ 44000
单选题Tom Wayne, CFA, is the investment manager of the Franklin City Employee Pension Plan. Wayne is a volunteer of CFA Institute and helps write CFA examination questions. Introduction materials of Franklin state: "Tom Wayne holds the CFA designation and has been appointed to assist in writing CFA examination questions. The honor puts him in the top tier of CFA charter holders. " Has Wayne violated the Professional Conduct Standards? A. No. B. Yes, relating to preservation of confidentiality. C. Yes, relating to conduct as members and candidates in the CFA program.
单选题Mailaka Securities (MS) advertises the use of a bottom up investment style in its marketing material
单选题Which of the following statements about a bond's cash flows is TRUE? The appropriate discount rate is a function of: A. the risk-free rate plus the return on the market. B. the risk-free rate plus the risk premium. C. only the risk premium.
单选题When a party to a forward contract terminates the contract prior to the original expiration date by entering into a perfectly offsetting forward contract with a second counterparty: A. the party terminating the forward contract has no default risk, but both counterparties face default risk. B. there is no future liability, but default risk remains for all parties until the original contract settlement date. C. the party terminating the contract is exposed to default risk, but has no further asset price risk.