单选题Anthony Gleason owns a stock valued at $50 per share. Gleason buys a put option with a strike price of $50 for $3. At expiration of the put option, the stock is valued at $65 per share. The profit from Gleason"s portfolio insurance strategy is:

单选题The demand curve for a firm in a perfectly competitive market is: A. upward sloping. B. vertical. C. horizontal.

单选题A straight 3% bond bas two years remaining to maturity and is priced at $973.4. A callable bond that is the same in every respect as the straight bond, except for the call feature, is priced at $925.2. With the yield curve flat at 5%, what is the value of the embedded call option?

单选题The crowding-out effect suggests that:

单选题Wes Smith, CFA, refers many of his clients to Bill Towers, CPA, for accounting services. In return, Towers performs routine services for Smith, such as his tax returns, for no charge. Towers has just become a member of CFA Institute. With this development, Towers must（ ）

单选题An analyst does research about price-to-eamings ratio. With respect to price multipliers based on fundamentals, and all else being equal, an increase in which of the following inputs most likely will cause the price-to-earnings ratio to increase? A. Retention ratio. B. Required rate of return. C. Growth rate of eamings.

单选题An analyst stated that lognormal distributions are suitable for describing distributions of asset prices and that normal distributions are suitable for describing asset returns. Is the analyst's statement correct with respect to: Lognormal distributions? Normal distributions? A. No No B. No Yes C. Yes Yes

单选题Which of the following is an effect of expansionary monetary policy? A. lower prices. B. lower real output. C. higher employment.

单选题An analyst does research about yield spread. With respect to yield spread on corporate bonds, which of the following statements is least accurate? A. The size of a bond issue is a factor in the determination of yield spreads. B. Different sectors in the bond market require different spreads over Treasuries. C. A bond with an embedded put option would require a wider spread than an otherwise comparable option-free bond.

单选题Use the following data to analyze a stock's price earnings ratio (P/E ratio): The stock's beta is 1.2. The dividend payout ratio is 60%. The stock's expected growth rate is 7%. The risk free rate is 6% and the expected rate of return on the market is 13%. Using the dividend discount model, the expected P/E ratio of the stock is closest to: A. 8.1. B. 10.0. C. 12.0.

单选题The minimum value for a European call option is: A. main [0, S-X/(1 +r)T]. B. max [0, (S-X) /(1 +r)T]. C. max [0, S-X/(1 +r)T].

单选题Which of the following statements concerning requirements under Standard V(B)-communication with Clients and Prospective Clients is least likely accurate? This standard requires members and candidates to:

单选题Assuming inventory levels remain constant during the year and prices have been stable over time, COGS would be: A. the same for both LIFO and FIFO. B. higher under the average cost than LIFO or FIFO. C. higher under the FIFO than LIFO or average cost.

单选题Gabrielle Gabbe, CFA has been accused of professional misconduct by one of her competitors

单选题A project has the following estimated revenues of $10.0 million and estimated costs are $ 7.5 million. The table below provides information on amounts billed, cash received, and cost incurred for each year of the 3-year project(data is in millions of dollars). Year1 Year2 Year3 Amounts billed 4.0 3.5 2.5 Cash received 2.0 5.0 3.0 Cost incurred 3.0 3.0 1.5 Which of the following statements relating to the cumulative balance sheet and income statement at year-end is least accurate? A. Using the accounting method that smooths income, the company will recognize profit of $ 0.5 million in year 3. B. Considering this project only, and using the percentage of completion method, total assets at the end of year 3 will be $ 2.5 million. C. If ultimate payment is assured and the cost estimates are unreliable, the company will recognize profit of $1 million in year 2.

单选题Acompanywhoseobjectiveistomaximizeincomehadspent$1,000,000foramachinewithtwosignificantcomponentsasindicatedbelow.Themachineisexpectedtohaveanoverallusefullifeof10yearsandthecompanyusesthestraightlinemethodofdepreciation.ComponetCostUsefulLifeA$500,00010yearsB$500,0005yearsThedepreciationexpenseforthefirstyearcomputedunderIFRScomparedwithunderU.S.GAAPwillmostlikelybe:

单选题Yamaska Mining issued a 5-year, $50 million face, 6% semiannual bond when market interest rates were at 7%

单选题A portfolio manager holds the following three bonds, which are option free and have the indicated durations

单选题An analyst does research about real estate investment. When estimating the value of an industrial warehouse, which of the following real estate models most likely requires an adjustment to estimated market value of its benchmark? A. The cost approach. B. The discounted after-tax cash flow approach. C. The sales comparison approach.

单选题Within the Global Investment Performance Standards (GIPS) are supplemental provisions which must be applied to which of the following asset classes? A. Emerging markets and private equity. B. Private equity and real estate. C. Hedge funds and derivatives.