单选题Capital market efficiency is desirable, but there are limitations in
achieving full market efficiency. Which of the following is least likely to be a
limitation in achieving full capital market efficiency?
A. Cost of trading.
B. Survivorship bias.
C. Limits of arbitrage.
单选题Margie Germainne, CFA, is a risk management consultant who has been asked by a small investment bank to recommend policies to prevent bank employees from front running client orders
单选题Which of the followinq is most likely to cause a shift to the riqht in the aqqreqate demand curve?
单选题Which of the following statements concerning security valuation is FALSE? A. Determining the value of a company with supernormal growth requires finding the present value of the dividends during the supernormal growth and adding that to the present value of the stock computed for the period of normal growth. B. The top-down valuation approach requires an assessment of industry influences on the company's value first, then stock-specific influences. C. A firm with a 20% return on equity (ROE) and a dividend payout ratio of 30% will have a sustainable growth rate of 14%.
单选题Frank Jameson is a portfolio manager with 90 percent of the large-cap diversified mutual fund he controls invested in common stocks. Jameson is concerned the overall market will decline by a significant amount over the next two months due to a slowing of the general economy. Which of the following actions will provide a hedge for the mutual fund?
单选题Which of the following statements about revenue recognition methods is most accurate? A. The completed contract method recognizes revenue at the time of the sale. B. The cost recovery method recognizes profit as cash is received. C. The percentage of completion method recognizes profit corresponding to the costs incurred as a proportion of estimated total costs.
单选题The short-run supply curve for a price taker firm is the portion of
the marginal:
A. cost (MC) curve below the average variable cost (AVC) curve.
B. cost (MC) curve above the average total cost (ATC) curve.
C. cost (MC) curve above the average variable cost (AVC) curve.
单选题Which of the following five year bonds has the highest interest rate sensitivity?
单选题What is the most likely effect of an increase in volatility on the price of a: Call option Put option ①A. Decrease Increase ②B. Decrease Decrease ③C. Increase Increase
单选题Which of the following does NOT imply an informationally efficient
market?
A. Many profit-maximizing participants, each acting independently of the
others, analyze and value securities.
B. The timing of one news announcement is independent of other news
announcements.
C. A risk-free asset exists, and investors can borrow and lend an unlimited
amount at the risk-free rate.
单选题For a project with conventional cash flows and a negative net present value, the profitability index is most likely: A. less than one. B. equal to one. C. more than one.
单选题The demand for money curve represents the relationship between the quantity of money demanded and:
单选题All of the following factors affects the firm"s P/E ratio EXCEPT:
单选题Geno Potosi is delivering a lecture on the Phillips curve model, during which he makes the following two statements: Statement 1: If expected inflation is less than actual inflation, the short-run Phillips curve shows that the unemployment rate will increase. Statement 2: The negative relationship between the inflation rate and unemployment rate does not hold in the long run because the expected inflation rate adjusts to the actual performance of inflation. Are Potosi's two statements correct? Statement 1 Statement 2 ①A. Correct Correct ②B. Incorrect Correct ③C. Correct Incorrect
单选题Which of the following statements regarding economic costs is most
accurate?
A. Sunk costs involve setting aside payments to retire long-term debt.
B. In the long run, expected average marginal cost is the most relevant cost
to the firm.
C. Fixed costs are not a consideration in the short run operating decision,
but must be considered in the long run.
单选题An analyst does research about difference between an option-free bond and a callable bond. Compared to an otherwise identical option-free bond, a callable bond is least likely to have: A. a more uncertain cash flow pattem. B. less price appreciation potential as interest rates fall. C. more price depreciation potential as interest rates rise.
单选题An analyst gathered the following information about Weston Chemical"s stock:
Estimated sales per share = $12.19
Earnings before interest, taxes, depreciation, and amortization (EBITDA) = 73%
Interest expense per share = $2.07
Depreciation expense per share = $6.21
The tax rate =35%
Weston"s estimated Earnings per Share (EPS) is closest to?
单选题The risk-free rate is 5 percent and the expected return on the market index is 15 percent. A stock has a: Beta of 1.0. Dividend payout ratio of 40%. Return on equity (ROE) on new investments of 15%. If the stock is expected to pay a $ 2.50 dividend, its intrinsic value using dividend discount model is closest to:
单选题A trader buys 500 shares of a stock on margin at $36 a share using an initial leverage ratio of 1
单选题Which of the following statements regarding CFA Institute Global Investment Performance Standards (GIPS) is TRUE? A firm that employs members of CFA Institute: A. must comply with the GIPS only within the United States. B. is not required to conform to the GIPS. C. must choose to comply with either the Performance Presentation Standards (PPS) or GIPS.