单选题Consider a commercial bank that is about to make a large variable-rate loan. Which of the following would be an appropriate position for the bank to hedge its risk with this loan? Pay: A. variable to a currency swap counterparty and receive fixed. B. variable to an interest rate swap counterparty and receive fixed. C. fixed to an interest rate swap counterparty and receive variable.
单选题An analyst conducted a significance test to determine if the relationship between two variables was real or the result of chance. His null hypothesis is that the population correlation coefficient is equal to zero and his alternative hypothesis is that the population correlation coefficient is different form zero He developed the following information:
Value of the test statistic
2.8092
Critical value at the 0.05 significance
1.96
Critical value at the 0.01 significanae level
2.58 The analyst conducted a: A. one-tailed test and can reject his null hypothesis. B. two-tailed test and can reject his null hypothesis. C. one-tailed test and cannot reject his null hypothesis.
单选题As all equal, in periods of rising prices and inventory levels, which of the following statements is correct?
单选题A company has two $1000 face value bonds outstanding both selling for $701.22. The first issue has an annual coupon of 8% and 20 years to maturity. The second bond has the same yield as the first bond but has only five years remaining until maturity. The second issue pays interest annually as well. What is the annual interest payment on the second issue?
单选题At a recent conference "The Fed -Where is it Going?", Jason Alexdrovitch was discussing the policy tools that the U.S. central bank uses to control the money supply. During the conference he made the following statements:
Statement 1: If the Fed wanted to use all of its three major monetary policy tools to increase the money supply, the Fed would sell bonds, reduce the discount rate and increase bank reserve requirements.
Statement 2: If commercial banks are increasing their borrowings from the Federal Reserve banks, while the Fed is selling government securities, the borrowing of the commercial banks from the Fed will offset the effects of open market operations.
Are Statement 1 and Statement 2 as made by Alexdrovitch correct?
Statement 1 Statement 2
①A. Incorrect Incorrect
②B. Incorrect Correct
③C. Correct Incorrect
A. ①B. ②C. ③
单选题A consumer is shopping for a home. His budget will support a monthly payment of $1 300 on a 30-year mortgage with an annual interest rate of 7.2 percent. If the consumer puts a 30 percent down on the home, the most he can pay for his new home is closest to:
单选题Which of the following statements regarding the issuance of a discount bond is TRUE? A. The cash from operations (CFO) is understated. B. The cash from investing (CFI) is increased by the amount of the proceeds. C. The cash from financing (CFF) is increased by the amount of the proceeds.
单选题Withrespecttothecapitalassetpricingmodel,shouldinvestorsexpecthigherreturnsforacceptingincreasingamountsof:
单选题An analyst does research about consumer surplus and producer surplus. When monopolies can use perfectly price discrimination, consumer surplus is: A. less than zero. B. equal to zero. C. greater than zero.
单选题Study the following data, calculate the return on equity for 2001 and 2002.
单选题Study the following data, calculate the return on equity for 2007 and 2008. 2007 2008 Pre-interest profit margin (EBIT/S) 0.3 0.15 Asset turnover (S/A) 2 2 Leverage multiplier (A/E) 2 2 Tax retention rate (1-t) 0.8 0.8 Interest expense ratio (I/A) 0.06 0.06 2007 2008 ①A. 0.864 0.384 ②B. 0.673 0.271 ③C. 0.384 0.864 A. ①B. ②C. ③
单选题Which of the following actions is most likely to give an analyst
superior results7
A. The ability to react very quickly to public announcements.
B. Having superior abilities to identify patterns of returns based on
historical data of economic factors and being able to determine the relationship
between a stock return and certain economic factors based on historical data and
then use that relationship to make reliable forecasts for future price
movements.
C. A strong ability to interpret and estimate the future impact of publicly
available information.
单选题Joni Black, CFA, works for a portfolio management firm
单选题Tamlorn Mager, CFA, is an analyst at Pyallup Portfolio Management
单选题A woman is using the following information to plan her retirement:
current age (years)
24
expected retirement age (years)
68
life expectancy (years)
93
current annual expenditures
$30000
expected inflation rate until retirement
3%
expected return on investment
8%
She assumes her consumption expenditures will increase with the rate of inflation, 3 percent, until she retires. Upon retiring she will have end-of-year expenditures equal to her consumption expenditure at age 68. The minimum amount that she must accumulate by age 68 in order to fund her retirement is closest to:
单选题If statistical tests of stock returns over time support the efficient
market hypothesis, the resulting correlations should be:
A. lagged.
B. negative.
C. zero.
单选题Which of the following is the least accurate approach used to value closely held companies? Basing the value of company on the: A. present value of future economic income. B. historic cost of the assets of similar companies. C. average market price of similar companies recently sold.
单选题Which of the following statements is not the necessary condition for effective price discrimination to occur?
单选题During periods of rising prices and stable or growing inventories, the most informative inventory accounting method for income statement purposes is: A. FIFO because it allocates historical prices to cost of good sold (COGS) and provides a better measure of current income. B. LIFO because it allocates historical prices to cost of good sold (COGS) and provides a better measure of current income. C. LIFO because it allocates current prices to cost of good sold (COGS) and provides a better measure of current income.
单选题An analyst does research about liquidity. Which of the following changes will least likely improve a company's liquidity position? A. Supplies increase credit terms. B. Bank line of credit limit decreases. C. Number of days of receivable decrease.