单选题When using the CAPM to estimate the cost of common equity for a company in a developing country, an analyst should most appropriately: A. add a country risk premium to the market risk premium. B. add the sovereign yield spread to the CAPM cost of common equity. C. multiply the equity's beta by the ratio of the volatility of the developing country's equity market and a developed country's equity market.
单选题A composite series of stocks and bonds makes it possible to:
A. examine the benefits of diversifying with a combination of asset classes
such as stocks and bonds in addition to diversifying with the asset classes of
stocks or bonds.
B. examine the correlation among the various asset classes of stocks or
bonds.
C. examine the benefits of diversifying with a combination of asset classes
such as stocks and bonds.
单选题An option"s intrinsic value is equal to the amount the option is:
单选题Which inventory method best matches the actual historical cost of the inventory sold with their physical flow if a company is using a perpetual inventory system?
单选题If a lease is capitalized rather than expensed (an operating lease) the firm's net income will: A. decrease over the life of the lease. B. remain constant over the life of the lease. C. increase over the life of the lease.
单选题An analyst does research about pension plan. A company regularly contributes the agreed-upon amount to its defined contribution pension plan in each reporting period. The contribution most likely affects its balance sheet as a decrease in: A. cash flow only. B. the funded status only. C. both cash flow and the funded status.
单选题Temporary differences in taxable and pretax income: A. will always be reversed. B. may result in lower current taxes payable and higher future taxes payable. C. are not reported on the balance sheet.
单选题Gene Bawerk, an economics professor, is lecturing on the factors that influence the price elasticity of demand. He makes the following assertions:
Statement 1: For most goods, demand is more elastic in the long run than the short run.
Statement 2: Demand for a good becomes more elastic when a close substitute for it becomes available on the market.
Are Bawerk's statements correct?
Statement 1 Statement 2
①A. Correct Incorrect
②B. Incorrect Correct
③C. Correct Correct
A. ①B. ② C. ③
单选题Two techniques for forecasting cash flows are to use projection models and averages, or statistical techniques. Which of these two methods would be most appropriate for: medium-term forecasting? long-term forecasting? A. Statistical techniques Statistical techniques B. Statistical techniques Projection models and averages C. Projection models and averages Statistical techniques
单选题Which of the following statements regarding a plain vanilla swap is FALSE? A. The notional principal amounts are exchanged at contract initiation and at the termination of the swap. B. Only a net payment is made on each settlement date. C. If interest rates decrease, the swap has a negative value to the fixed rate payer.
单选题Call options on the stock of Verdant, Inc. , with a strike price of $45 are priced at $3.75. Put options with a strike price of $45 are priced at $3.00. Which of the following most accurately describes the potential payoffs for owners of these options ( assuming no underlying positions in Verdant)?
Maximum loss Potential Maximum gain Potential
①A. Call writer Call buyer
②B. Put buyer Call writer
③C. Put writer Call buyer
单选题Compared with investment-grade bonds, the spread movements on high-yield bonds are influenced:
单选题Which of the following statements about put and call options is FALSE? A. The price of the option is less volatile than the price of the underlying stock. B. Option prices are generally higher the longer the time till the option expires. C. For put options, the higher the strike price relative to the stock's underlying price, the more the put is worth.
单选题According to the Code of Ethics, which of the following statements is
FALSE? CFA Institute members are required to:
A. comply with the CFA Institute Performance Presentation Standards.
B. use reasonable care and exercise independent professional judgment.
C. practice and encourage others to practice in a professional and ethical
manner.
单选题A firm reported the following:
●Gross DTA at the beginning of the year $23000
●Gross DTA at the end of the year $24500
●Valuation allowance at the beginning of the year $4600
●Valuation allowance at the end of the year $6700
Which of the following statements best describes the expected earnings of the firm? Earnings are expected to:
单选题An investor currently holds a portfolio that is expected to return 15
percent. The investor is planning to sell one of the securities included in the
current portfolio that has an expected return of 13 percent and use the proceeds
to purchase a security that has an expected return of 14 percent. Compared to
the investor's current portfolio, the expected return for the investor's revised
portfolio will be:
A. above 15 percent whether or not any change occurs in the standard
deviation of the portfolio
B. below 15 percent whether or not any change occurs in the standard
deviation of the portfolio
C. above 15 percent only if the covariance of the new security is lower than
the covariance of the security that was sold.
单选题An analyst gathered the following information about Fallow Corporation
单选题If the last unit of input increases total product we know that the
marginal product of that input is:
A. negative.
B. positive.
C. increasing.
单选题An investor purchases one share of stock for $85
单选题If a U.S. investor is forecasting that the yield spread between U.S. Treasury bonds and U.S. corporate bonds is going to widen, then which of the following is most likely to be TRUE?（ ）