单选题In order to dispel the myth that the emerging market stocks are
illiquid investments, NYK, a "long only" emerging market fund manager, has two
of its subsidiaries simultaneously buy and sell emerging market stocks. In its
marketing literature, NYK cites the overall emerging market volume as evidence
of the market's liquidity. As a result of its actions, more investors
participate in the emerging markets fund. Which of the following is most likely
correct? NYK:
A. did not violate the Code and Standards.
B. violated the Code and Standards by manipulating the volume in the
emerging securities markets.
C. would not have violated the Code and Standards if the subsidiaries only
traded stocks included in the fund.
单选题Duster Company reported the following financial information at the end of 2007:
in millions
Unearnedrevenue
$240
Common stock at par
30
Capital in excess of par
440
Accounts payable
1150
Treasury stock
2000
Retained earnings
5160
Accrued expenses
830
Accumulated other comprehensive loss
210
Long - term debt
1570
Calculate
单选题Which one of the following alternatives best describes the primary use of descriptive statistics? A. They are used to summarize important characteristics of large data sets. B. They are used to obtain data about the characteristics of any data set that can be used to assess the likelihood of the occurrence of future events. C. They are used to make forecasts based on large data sets.
单选题A pension fund expects to pay obligations of $ 5000000 4 years from today. The fund will fund this obligation by making 5 annual, equal deposits into an account earning 3% , with the first deposit occurring today, and the last occurring at the time the obligation is due. What size must each annual deposit be?
单选题Which of the following limits the ability of arbitrage to correct anomalies?
单选题Which of the following is/are possible causes for inefficiencies in the distressed securities market? Ⅰ. They do not require much due diligence Ⅱ. Emotional reactions of selling investors Ⅲ. Investment restrictions of certain institutional investors
单选题Given the following data what is the correlation coefficient between the two stocks and the Beta of stock A? standard deviation of returns of Stock A is 10.04 percent standard deviation of returns of Stock B is 2.05 percent standard deviation of the market is 3.01 percent covariance between the two stocks is 0.00109 covariance between the market and stock A is 0.002 Correlation Coefficient Beta ( stock A) ①A. 0.6556 0.06 ②B. 0.5296 0.06 ③C. O.5296 2.2
单选题An analyst has gathered the following data about a company with a 12 percent cost of capital:
Project A
Project B
Cost
$15000
$ 25000
Life
5 years
5 years
Cash inflows
$ 5000/year
$ 7500/year Projects A and B are mutually exclusive. What should the company do? A. Reject A, Reject B. B. Accept A, Reject B. C. Reject A, Accept B.
单选题An analyst can find a company's significant accounting methods and estimates in: A. only the footnotes. B. only the auditor's opinion. C. both the footnotes to the financial statements and Management's Discussion and Analysis.
单选题Assuming a flat term structure of interest rates of 5 percent, the
duration of a zero-coupon bond with 5 years remaining to maturity is closest to:
A. 5.00.
B. 4.35.
C. 6.34.
单选题An analyst gathered the following data about a company:
2006
2007
EBIT margin (EBIT/revenue)
0.15
0.10
Asset turnover(revenue/assets)
1.5
1.8
Leverage multiplier(assets/equity)
1.5
1.6
Tax bueden( net income/REBT)
0.7
0.7
Interest burden (EBT/EBIT)
0.85
0.85 The company's return on equity: A. decreased because the company's profit margin fell. B. increased because the company's leverage multiplier rose. C. increased because the company's asset turnover increased.
单选题An analyst discovers a company with solid earnings but with no prospect of growth. The company could still recommend it as a growth stock: A. if the earnings remain solid. B. if it is a cyclical stock. C. if the market price of the stock is below its intrinsic value.
单选题Which of the following does NOT represent a primary market offering? When bonds are sold:
单选题An analyst does research about cost of capital and gathers the following information about a company's proposed investment projects for 2012: Project Initial Investment(million) NPV (million) IRR 1 $21 $2.4 21% 2 $23 $1.6 19% 3 $19 $0.8 17% 4 $19 $0.6 14% 5 $31 -$1.0 12% If the analyst's calculations are accurate, the each of the projects has the predicted cash flow pattern and the same risk as the company, the company's cost of capital is closest to: A. 12% B. 13% C. 14%
单选题An investor goes long an FRA that expires in 30 days for which the underlying is 90-day LIBOR for a notional of $10 million. A dealer quotes this instrument at 4.5 percent. At expiration, 60-day LIBOR is 3.5 percent and 90-day LIBOR is 4 percent. The payment made at expiration is closest to: A. $12 376 from the investor to the dealer. B. $12 376 from the dealer to the investor. C. $16 570 from the investor to the dealer.
单选题Joyce La Valle, CFA is a portfolio manager at a global bank
单选题Index funds are:
A. on average underpriced by 15%, but this underpricing varies over time,
which supports the EMH.
B. on average overderpriced by 15%, but this overpricing varies over time,
which supports the EMH.
C. security portfolios designed to duplicate the composition and therefore
the performance of a selected market index series.
单选题Enamel Manufacturing (EM) is considering investing in a new vehicle. EM finances new projects using retained earnings and bank loans. This new vehicle is expected to have the same level of risk as the typical investment made by EM. Which one of the following should the firm use in making its decision?
单选题Which of the following is least likely to be considered an obstacle to
the efficient allocation of an economy's resources?
A. Rent controls.
B. Minimum wages.
C. Changes in consumer tastes.
单选题An analyst gathered the following information about a company: 2007 net sales $10000. 000 2007 net profit margin 5.0% 2008 expected sales growth - 15.0% 2008 expected profit margin 5.4% 2008 expected common stock shares outstanding 120000 The company's 2002 expected earnings per share is closest to: