单选题An analyst does research about confidence interval. The range of a confidence interval is most likely determined by the product of the reliability factor and the: A. standard error. B. mean. C. degree of confidence.
单选题An analyst has gathered the following information provided in the table below:
单选题Amarketindexcontainsthefollowingtwosecurities:StockSharesinIndexStart-of-PeriodPrice($)End-of-PeriodPrice($)DividendperPrice($)A60040372.00B50050521.50Thetotalreturnonanequal-weightedbasisisclosestto:
单选题A company has the following capital structure: Target
weightings: 30% debt, 20% preferred stock, 50% common equity.
Tax Rate: 35%. The firm can issue $1000 face value, 7.00%
semi-annual coupon debt with a 15-year maturity for a price of
$1047.46. An 8.0% dividend preferred stock issue has a value of
$35 per share. The company's growth rate is estimated at
6.0%. The company's common shares have a value of $40 and a
dividend in year 0 of DO = $3.00. The company's weighted
average cost of capital is closest to:
A. 9.84%.
B. 9.28%.
C. 9.21%.
单选题John, CFA, wants to undertake an independent consulting practice while employed.
He must get written permission from both his employer and the company who is
hiring the analyst's consulting services. According to the AIMR Standards on
Professional Conduct, which of the following statements about the
permission request is most correct? This permission request to the
employer should mention the:
单选题An analyst does research about equilibrium. Which of the following types of equilibrium is most likely to describe a monopoly that uses all its economic profit to maintain its monopoly ? A. Nash equilibrium. B. Long-run equilibrium. C. Rent-seeking equilibrium.
单选题According to U.S. GAAP, the assets and liabilities of a financial subsidiary do NOT have to be consolidated when the parent company owns:
单选题Accounting profit is often an unsatisfactory performance measure from an economic point of view because it: A. does not consider depreciation. B. does not consider the opportunity costs of equity capital. C. considers marginal costs rather than average costs.
单选题An observation that stocks with above average price-to-earnings ratios have consistently underperformed those with below average price-to-earnings ratios least likely contradicts which form of the market efficiency?
单选题A portfolio manager generated a rate of return of 15
单选题A portfolio is equally invested in Stock A, with an expected return of 6 percent, and Stock B, with an expected return of 10 percent, and a risk-free asset with a return of 5 percent. The expected return on the portfolio is（ ）
单选题Which of the following statements about an asset retirement obligation (ARO) is least accurate?
单选题Which of the following statements about the cost of capital is TRUE? A. Ideally, historical measures of the component costs from prior financing should be used in estimating the appropriate weighted average cost of capital. B. The cost of issuing new equity could possibly be lower than the cost of retained earnings if the market risk premium and risk-free rate decline by a substantial amount. C. In the weighted average cost of capital calculation, the cost of preferred stock must be adjusted for the cost to issue new preferred stock.
单选题An investor sold a stock short and is worried about rising prices. To
protect himself from rising prices he would place a:
A. stop order to sell.
B. limit order to sell.
C. stop order to buy.
单选题A company reports the following information about its annual percentage changes: ·Revenue increases by 14% ·Receivable increases by 20% ·Inventory increases by 27% This information indicates the company least likely has implemented: A. higher credit standards for customers. B. more aggressive revenue recognition. C. less efficient inventory management.
单选题An analyst does research about short-term borrowing approach. If a company seeks to minimize financing costs for half a year period, which of the following options is most appropriate? A. Uncommitted lines of credit at a 9.75% all-inclusive rate. B. Commercial paper at a 8.75% rate with a commitment. C. Regular line of credit at a 8.75% rate with a commitment.
单选题Helen Alba and Kobin Lubis have deferring views on the future performance of U-Cite. Consequently, Alba has taken a short position while Lubis has purchased the stock on margin. The relevant details are as follows: Market price per share: $42 Number of shares purchased: 1000 Holding period: 1 year Ending share price: $50 Initial margin requirement: 45% Maintenance margin: 30% Transaction and borrowing cost: $0 Alba and Lubis will receive margin calls at a stock price of: Alba Lubis ①A. $37.66 $53.45 ②B. $46.85 $53.45 ③C. $46.85 $33.00
单选题Aninvestorhaspurchasedashareofstockfor$190.Acalloptiononthisstock,expiringinsevenmonthsandwithanexercisepriceof$200,ispricedat$11.40.Iftheinvestorentersintoacoveredcallnow,theprofitonthisstrategyifthestockpriceatexpirationis$215isclosestto:
单选题A firm is reviewing an investment opportunity that requires an initial cash outlay of $336, 875 and promises to return the following irregular payments: Year 1 : $100000 Year 2 : $82000 Year 3 : $76000 Year 4 : $111000 Year 5 : $142000 If the required rate of return for the firm is 8 percent, what is the net present value of the investment?
单选题Which of the following statements is least likely an example of a portfolio constraint?