单选题The 3-year annual spot rate is 7%, the 4-year annual spot rate is 7.5%, and the 5-year annual spot rate is 8%. Based on the pure expectations theory of interest rates, the 1-year implied forward rate in four years is closest to:
单选题An analyst does research about required rate of return. With respect to an investor's required rate of return, those components included in the nominal riskfree rate of return will most likely: A. affect all of the investments. B. be relatively constant over time. C. affect the yield spread between government securities and corporate securities.
单选题Theperunitcontributionmarginforaproductis$12.Assumingfixedcostsof$12,000,interestcostsof$3,000,andtaxesof$2,000,theoperatingbreakevenpoint(inunits)isclosestto:
单选题A company paid a $1.5 dividend last year. The company is expecting
dividends to grow at a 5% rate in the future. What is the value of the value of
this stock if an investor requires a 12% rate of return on this stocks of this
risk class?
A. $22.5
B. $24.3
C. $32.8
单选题An investment with a cost of $ 5000 is expected to have cash inflows of $ 3000 in year 1, and $4000 in year 2. The internal rate of return (IRR) for this investment is closest to.
单选题Regardless of the shape of a distribution, according to Chebyshev's Inequality, what is the minimum percentage of observations that will lie within + or - two standard deviations of the mean?
单选题Which of the following statements about demand and consumer choice is least likely correct? A. The elasticity of demand for a good increases over time. B. In the short run, if the price of gasoline increases, consumption of gasoline will decrease by a smaller percentage. C. In the short run, if the price of a brand of flour increases, consumption of that brand of flour will decrease by a smaller percentage.
单选题Over the past two years, a firm reported higher operating cash flow as a result of securitizing its accounts receivable and from increasing income tax benefits from employee stock options. The tax benefits are solely the result of higher tax rates. Should an analyst conclude that these two sources of operating cash flow are sustainable? A. Neither source is sustainable. B. Both sources are sustainable. C. Only one of these sources is sustainable.
单选题Assume U.S. GAAP applies unless otherwise noted. A company has equipment with an original cost of $850000, accumulated amortization of $300000 and 5 years of estimated remaining useful life. Due to a change in market conditions the company now estimates that the equipment will only generate cash flows of $80000 per year over its remaining useful life. The company"s incremental borrowing rate is 8 percent. Which of the following statements concerning impairment and future return on assets (ROA) is most accurate?
单选题The risk-free rate is 5 percent, the market rate is 12 percent, and the beta of a stock is 0.5, what would happen to the required rate of return if the inflation premium increased by 2 percent? It would:
单选题Which following is least correct? A. Accelerating operating cash flow by securitizing receivables is sustainable. B. Securitizing accounts receivable may affect earning. C. GAAP is silent on where the gains from securitizations should be reported in the income statement.
单选题An increase in the expected rate of inflation is most likely to cause aggregate demand and short-run aggregate supply to:
Aggregate demand Short-run aggregate supply
①A. Increase Increase
②B. Increase Decrease
③C. Decrease Increase
A. ① B. ②C. ③
单选题The table below provides a history of a fixed income securitys coupon rate and the risk free rate over a five-year period
单选题On 1 January
单选题An analyst does research about debt covenants. Which of the following least likely lowers the risk to creditors? A debt covenant specifying a minimum level of the borrower's: A. current ratio. B. dividend payout ratio. C. interest coverage ratio.
单选题An expansionary fiscal policy is most likely to include a(n):
A. Increase in government expenditures and a decrease n tax rates.
B. decrease in both government expenditures and tax rates.
C. increase in both government expenditures and tax rates.
单选题At a regional conference for institutional portfolio managers, Chris makes three comments in a presentation centered on explaining for the creation of GIPS. Which of Chris"s comments is least likely correct?
单选题With respect to the Standards of Professional Conduct relating to conflicts of interests, CFA members are required to fully disclose to clients, prospective clients, and employers: A. only all actual conflicts of interests. B. only all potential conflicts of interests. C. both all actual and potential conflicts of interests.
单选题There's a Hatcher, CFA, is making arrangements to establish her own investment advisory business before terminating her relationship with her current employer, Elite Brokers, Inc. Elite is a small company consisting of only six investment professionals and a small support staff. According to CFA Institute Standards of Professional Conduct, which of the following activities is least likely a violation of Hatcher's duty to Elite? A. Hatcher solicits Elite's clients before her termination of employment at Elite. B. Hatcher takes home copies of Elite's client lists and marketing presentations. C. Hatcher leases office space, furniture, and other equipment for her new business.
单选题Thompson Industries has the following short-run cost structure per level of production output: Output Units (Q) Total Costs (TC) Fixed Costs (FC) 30000 $ 240000 $12000 50000 $ 360000 $12000 70000 $ 480000 $12000 90000 $ 570000 $12000 Based on the above and assuming a sales price of $10 per unit, what is the marginal cost per unit if the Company's output is increased from 50000 units to 70000 units?