单选题When calculating earnings per share (EPS) for firms with complex capital structures, convertible bonds are ordinarily considered to be（ ）
单选题Which of the following statements about project risk is FALSE? A. The riskier the project's income stream, the higher the discount rate should be. B. Mutually exclusive projects should be analyzed using the firm's weighted-average cost of capital (WACC). C. If investors are not well diversified, they may want management to concentrate more on project risk than on market (beta) risk.
单选题Which of the following procedures creates a theoretical spot rate curve used to value default-free cash flows by observing Treasury yield curve? A. Striping. B. Bootstrapping. C. Reconstitution.
单选题Which of the following statements about the implications of tests for the efficient market hypothesis (EMH) is least accurate? A. By purchasing a market index fund, an investor can match the market return and minimize costs. B. Other than corporate insiders and market specialists, most traders have monopolistic access to information, which rejects the strong-form EMH. C. Technical trading rules do not consistently provide excess returns after adjusting for trading costs and taxes.
单选题In addition to the usual parameters that describe a normal
distribution, to completely describe 10 random variables, a multivariate normal
distribution requires knowing the:
A. 45 correlations.
B. overall correlation.
C. 10 correlations.
单选题Luis Rodriguez, CFA, is an analyst at XYZ Investments. He covers a company that is located in a region that is not easily accessible. The company invites analysts for their annual analyst meeting and pays for the transportation to the remote location. Rodriguez is: A. not allowed to accept the payment for transportation because this is considered a "perk" and may influence his independent judgment. B. allowed to accept the payment for transportation as long as it does not exceed $100. C. allowed to accept the payment for transportation because the trip was all business and was out of the way.
单选题The demand for oil is more inelastic in the short-run than the supply of oil, but it is not perfectly inelastic. Based only on this factor, if the government imposes a $ 5.00 per barrel tax on oil producers : A. The incidence of the tax will fall most heavily on oil producers, because the tax is imposed directly on them. B. The incidence of the tax will be split between oil producers and oil consumers, with most of the tax being paid by oil producers. C. The incidence of the tax will be split between oil producers and oil consumers, with most of the tax being paid by oil consumers.
单选题In 2011, a software company recorded unearned revenue related to a software license that it will recognize as revenue during 2012
单选题The payoff on an interest-rate option:
单选题Which statement about equity forward contracts is least likely accurate?
单选题Which of the following is NOT an example of the Standards of Professional Conduct relating to market manipulation? A. Disseminate material nonpublic information to public. B. Spread false rumors to induce trading by others. C. Secure a controlling position in afinancial instrument to exploit the price of a related derivative.
单选题What is the present value of a 7% semiannual-pay bond with a $1000
face value and 20 years to maturity if similar bonds are now yielding 8.25%?
A. $1000.00.
B. $879.52.
C. $878.56.
单选题An analyst does research about real estate investment and gathered the following annual information about a real estate investment: Rental income net of vacancy and collection losses $750000 Depreciation $130000 Net operating income $475000 If the property above is valued at $3925000 based on the income approach, the capitalization rate is closest to: A. 8.8% B. 12.1% C. 15.8%
单选题Which of the following is the least accurate rationale to justify the use of price-to-book value (P/BV) ratio as a measure of relative valuation of companies or common stocks? A. P/BV is a useful measure of value for firms that are not expected to continue as a going concern. B. Compared to P/E, the P/BV ratio is not influenced by such accounting effects as expensing a capital investment as opposed to capitalizing it. C. P/BV is particularly appropriate to value companies primarily composed of liquid assets, for example, those in the financial services industry.
单选题Which of the following most accurately describes the computation of nearly all bond market indexes, U.S. and global.
单选题If expected yield volatility increases, the price of a(n)
单选题According to the CFA Institute Standards of Practice handbook, insider trading is the least likely to be prevented by establishing:
单选题Terrison Inc. is considering the purchase of a new material handling system for a cost of $43 million. This System is expected to generate a positive cash flow of $5 million per year in perpetuity. What is the NPV of the proposed investment if the appropriate discount rate is 7%?
单选题The best source of information on the issuance of the stock options is: A. the proxy statement. B. management's discussion and analysis. C. the financial notes and supplementary schedules.
单选题Which of the following is least likely an indication of good corporate governance practices?（ ）