单选题When the economy is operating at potential GDP, an unannounced decrease
in the rate of growth of the money supply intended to reduce inflation will most
likely lead to. lower inflation and:
A. a decrease in output in both the short run and the long run.
B. no change in output in both the short run and the long run.
C. a decrease in output in the short run, and lower inflation but no change
in output in the long run.
单选题Which of the following is least likely a reason that investors should be skeptical of reported market anomalies?
单选题The minimum rate of return an investor must receive in order to accept an investment is best described as the:
单选题The Semi-strong form efficient market hypothesis assumes the security prices fully reflect information about: A. industry trends. B. trading volumes. C. private information.
单选题An analyst stated that the mean of the standard normal distribution always has a value of zero but that the standard deviation of the standard normal distribution can take on a value from 0 to 1. 0. Is the analyst correct with respect to the value of the standard normal distribution's: mean? Standard deviation? ①A. No No
②B. No Yes
③C. Yes No
A．① B．② C．③
单选题Which school of economic thought holds that unpredictable changes in central bank policy are the primary cause of business cycles?
单选题There are four main barriers to entry. Which of the following is NOT a barrier to entry?
单选题Consider a stock selling for $ 23 that is expected to increase in price to $ 27 by the end of the year and pay a $ 0.50 dividend. If the risk-free rate is 4 percent, the expected return on the market is 8.5 percent, and the stock"s beta is 1.9, what is the current valuation of the stock?
The stock:
单选题Use the following information to determine the value of River Gardens" common stock:
Expected dividend payout ratio is 45 percent.
Expected dividend growth rate is 6.5 percent.
River Gardens" required return is 12.4 percent.
Expected earnings per share next year are $3.25.
单选题Which of the following statements regarding the different theories of
the term structure of interest rates is FALSE?
A. The preferred habitat theory can be described as investors that prefer to
stay within a particular maturity range of the yield curve regardless of yields
in other maturity ranges.
B. The market segmentation theory, pure expectations theory, preferred
habitat theory, and liquidity preference theory are all consistent with any
shape of the yield curve.
C. An upward sloping yield curve can be consistent with the liquidity
preference theory even with expectations of declining short term interest
rates.
单选题Belen Zapata, CFA, is the owner of Kawah Investments
单选题Party C and D hold German marks and U. S. dollars respectively. The spot exchange rate between German marks and U. S. dollars is 2.5 marks per dollar. Party C holds 25 million marks and wants dollars. Assume the tenor of the swap is 7 years. Party C is a German firm with access to marks at a rate of 7% , while Party D must pay 8% to borrow marks. Party D, however, can borrow dollars at 9%, while Party C must pay 10% for its dollar borrowings. The annual amount received by Party C is:
单选题The lower limit of a normal distribution is:
A. negative infinity.
B. zero.
C. one.
单选题A portfolio manager uses her valuation model to estimate the value of a bond as $125.482. Using the same model, she estimates that the value would increase to $127.723 if interest rates fell 30 bps and would decrease to $122.164 if interest rates rose to 30 bps. Using these estimates, the effective duration of the bond is closest to:
单选题Jamie Morgan needs to accumulate $ 2000 in 18 months. If she can earn 6 percent at the bank, compounded quarterly, how much must she deposit today?
单选题A company purchased equipment for $50
单选题A retail company that leases the majority of its space has:
total assets of $4,500 million,
total long-term debt of $2,125 million, and
average interest rate on debt of 12%
单选题Which of the following statements about duration is FALSE?
A. The numerator of the effective duration formula assumes that market rates
increase and decrease by the same number of basis points.
B. Effective duration is the exact change in price due to a 100 basis point
change in rates.
C. For a specific bond, the effective duration formula results in a value of
8.80%. For a 50 basis point change in yield, the approximate change in price of
the bond would be 4.40%.
单选题For accounting information to be useful for an analyst, it should be reliable. Which of the following is least likely a characteristic of reliability?
单选题An analyst has calculated the following ratios for a company:
Operating Profit Margin
17