单选题A market index contains the following two securities:
Stock
Shares inIndex
Start-of-Period
Price($)
End-of-Period
Price($)
Dividend per
Share($)
A
600
40
37
2
单选题An analyst gathers the following information about two mutually exclusive projects of a company: Project 1 Project 2 Net present value $700000 $600000 Interest rate of return 12% 15% If the cost of capital used is 10%, the most appropriate decision for the company is to accept: A. Project 1 only. B. Project 2 only. C. both Project 1 and Project 2.
单选题Which of the following statements about inventory accounting is least accurate?（ ）
单选题Which of the following statements about special purpose vehicles (SPVs) is most accurate? A. SPVs have no role in the asset backed credit rating process. B. SPVs are used exclusively for asset backed transactions. C. If bankruptcy occurs, a judge could rule that the SPVs assets can be considered general assets of the corporation.
单选题Assume that at current production and consumption levels, a product exhibits price elasticity of demand equal to 1
单选题Randy Smith called his broker, Pare Durbin, and asked her to borrow 100 shares of Zylex Corp. stock. Randy then sold the stock at the current market price of $45 while anticipating that Durbin would be able to buy the stock back for him at a lower price in the future. What type of order did Smith place?
单选题An annuity will pay eight annual payments of $ 100, with the first payment to be received one year from now. If the interest rate is 12 percent per year, what is the present value of this annuity?
单选题A firm"s financial statements reflect the following:
EBIT
$ 2000000
Sales
$16000000
Interest expense
$ 900000
Total assets
$12300000
Equity
$ 7000000
Effective tax rate
35%
Dividend payout rate
28%
Based on this information, what is the firm"s sustainable growth rate?
单选题David Korotkin, CFA and a broker at an investment bank, has a client who is very concerned about maintaining purchasing power over the next year. The investor is conservative, and to date has been pleased with a consistent return of 8.00 percent. The bank"s research department has estimated next year"s inflation rate at 2.0 percent. The client specifically wants to invest in a fixed-coupon bond. Which of the following statements is most correct? If Korotkin purchases a bond with a 10.00 percent coupon, the client:
单选题An analyst does research about margin purchase of stocks. An investor purchased 100 shares of a stock selling at $ 60 per share. The investor borrowed the maximum amount allowed by the initial margin requirement of 60 percent. If the stock price increases to $70 per share, the investor's return before commission and interest on the loan is closest to: A. 16.7% B. 27.8% C. 41.7%
单选题Mason Snow, CFA, is an analyst with Polari Investments. Snow's manager has instructed him to put only securities that are undervalued on the buy list. Today, Snow is to make a recommendation on the following two stocks: Bahre (with an expected return of 10 percent and a beta of 1.4) and Cubb (with an expected return of 15 percent and a beta of 2.0). The risk-free rate is at 7 percent and the market premium is 4 percent. Snow places:
单选题Aprojecthasthefollowingannualcashflows:Year0Year1Year2Year3Year4-$75,000$21,600$23,328$37,791$40,815Withadiscountrateof8%,thediscountedpaybackperiod(inyears)isclosestto:
单选题Portfolio A earned an annual return of 15 percent with a standard deviation of 28 percent. If the mean return on Treasury bills ( T - bills) is 4 percent, the Sharpe ratio for the portfolio is :
单选题Reading the footnotes to a company's financial statements and the Management Discussion ＆ Analysis is least likely to help an analyst determine: A. how well the financial statements reflect the company's true performance. B. in what ways he needs to adjust the data for his own analysis. C. the detailed information that underlies the company's accounting system.
单选题A private agreement between two parties to exchange a series of
future cash flows, with at least one of the two series of cash flows determined
by a later outcome, is best characterized as a (n) :
A. swap.
B. futures contract.
C. over-the-counter contingent claim.
单选题Suppose that IBM has a $1000 par value bond outstanding with a 12
percent semiannual coupon that is currently trading at 102.25 with seven years
to maturity. Which of the following is closest to the yield to maturity on the
bond?
A. 11.21%.
B. 11.64%.
C. 11.52%.
单选题Which of the following statements is most accurate regarding the
characteristics of a perfectly competitive market?
A. Firms' products are different.
B. The competitors never earn economic profits.
C. Barriers to entry into the market are nonexistent.
单选题In any given year, the chance of a good year is 40 percent, an average year is 35 percent, and the chance of a bad year is 25 percent. What is the probability of having two good years in a row?
单选题Which of the following is most likely related to the change in polarity principle? A. Volatility. B. Price. C. Volume.
单选题In order to implement a more expansionary monetary policy, would an effective strategy for a government's central bank include: Raising reserve requirements Selling the government securities A. No No B. No Yes C. Yes No