单选题An equity analyst is forecasting the next years net profit margin of a heavy equipment manufacturing firm, by using the average net profit margin over the past three years
单选题Which of the following steps in hypothesis testing most likely follows collecting the data and calculating the test statistic?
单选题Which of the following statements about a company that capitalizes significant costs this year is least likely correct? Compared with expensing, a company that capitalized these costs would: A. show smoother reported income and lower return on assets in future years. B. have higher cash flow from operations and lower cash flow from investing. C. have lower profitability ratios this year and higher cash flows from operations.
单选题Matthew Reeves is listening to a discussion on how resources move to
the most efficient allocation. Two of the participants make these
statements: Statement 1: When resources are diverted from beer
production to wine production, this represents an inefficient allocation from
the perspective of the beer producers. Statement 2: Market
allocation of resources tends toward efficiency because the value of what a
resource can produce determines its allocation in production.
Should Reeves agree or disagree with these statements?
Statement 1
Statement 2 ①A. Disagree
Agree ②B.
Agree
Agree ③C. Agree
Disagree
A. ①
B. ②
C. ③
单选题Where are dividends paid to shareholders reported in the cash flow statement under U.S. GAAP and 1FRS?
U.S. GAAP IFRS
① operating or financing activities operating or financing activities
② financing activities operating or financing activities
③ operating activities financing activities
单选题For markets with perfectly elastic supply and perfectly inelastic supply, respectively, the introduction of a tax will most likely result in: Markets with perfectly elastic supply Markets with perfectly inelastic supply ①A. A price increase, and the seller bears the tax A price increase, and the buyer bears the tax ②B. A price increase, and supply remains the same No change in price, and the buyer bears the tax ③C. A price increase, and the buyer bears the tax No change in price, and the seller bears the tax
单选题When Abdullah Younis, CFA, was hired as a portfolio manager at an asset management firm two years ago, he was told he could allocate his work hours as he saw fit
单选题A shift in the long-run Phillips curve represents a change in the:
单选题When calculating cash flow from operations (CFO) using the indirect method, which of the following is most accurate? A. The indirect method requires an additional schedule to reconcile net income to cash flow. B. In using the indirect method, each item on the income statement is converted to its cash equivalent. C. When recognizing a gain on the sale of fixed assets, the amount is a deduction to operating cash flows.
单选题Brian Ci believes that the average return on equity in the airline industry, μ, is less than 5 percent. What are the appropriate null (H0) and alternative (Ha) hypotheses to test this belief? A. H0:μ≥0.05 versus Ha:μ＜0.05. B. H0:μ＜0.05 versus Ha:μ＞0.05. C. H0:μ＞0.05 versus Ha:μ＜0.05.
单选题In the long run, if price is below average total cost (ATC), the firm
will:
A. shut down.
B. keep running.
C. produce more.
单选题An analyst gathered the following information about a company:
Taxable income is $ 40000.
Pretax income is $ 50000.
Current tax rate is 50%.
Tax rate when the reversal occurs will be 40%.
What is the company" s deferred tax liability at the end of year 1?
单选题Which of the following is not the result of using an straight line depreciation method instead of accelerated depreciation method in the early years of asset's life?
单选题An analyst does research about securities market indices and gathers the following information is about a value-weighted index comprised of three non-dividend paying stocks: 31 December 2011 31 December 2010 Stock Share price Outstanding shares Share price Outstanding shares 1 $23.00 3400 $25.50 3400 9 $19.50 6600 $16.00 6600 3 $33.00 4600 $20.50 9200 If the index value on 31 December 2010 was 102.5, the index value on 31 December 2011 is closest to: A. 99.7 B. 96.5 C. 108.8
单选题Information for Stock A and the market appear below:
Standard deviation of Stock As return
40%
Standard deviation of the markets return
20%
Correlation of Stock A with the market
85%
The beta of Stock A is closest to:
单选题Given that markets are efficient, which of the following is least likely to cause an actively managed mutual fund to underperform an index fund?
单选题Option investor D sells (writes, takes a SHORT position in) one of the following call options: Type of option: call option Underlying asset: 100 shares of Disney stock Exercise price: $40 per share Premium : $2.25 per share Expiration date : January The current market price of Disney stock is $39.02 per share. Investor D already owns 500 shares of Disney stock. Which of the following describes the amount of initial margin required for this transaction? A. Since the call option is "in the money" investor D is not required to deposit initial margin. B. Since investor D owns at least 100 shares of Disney stock, he must deposit initial margin in the amount of 100% of the option premium. C. Since investor D owns at least 100 shares of Disney stock, no additional margin is required.
单选题Teresa Staal, CFA is an investment officer in a bank trust department
单选题Which of the following statements is least likely an advantage of swaps?
单选题The efficient market hypothesis implies that fundamental analysis:
A. can achieve superior returns by extrapolating historical data.
B. will be successful if transaction costs are minimized by focusing on a
limited number of large-capitalization stocks.
C. requires the analyst to predict movements in relevant variables that
affect rates of return.