单选题The potential profits from writing a covered call position on a stock are: A. less than potential profits of a short call. B. limited to the premium plus stock appreciation up to the exercise price. C. limited to the premium.

单选题Securities A and B have forecasted returns of 14% and 18% over the next 12 months. During the same period, the market (M) is expected to generate returns of 16%. The risk-free rate is 6% , and β = 1.1. The forecasted price for next year for security A is $ 60. According to the CAPM, what should A sell for today?

单选题Compared to investors with long investment time horizons, investors with short investment time horizons most likely require（ ）

单选题At the start of the year

单选题What is the holding period yield for a T-bill that is selling for $48000, with a face of $50000, and 270 days remaining until maturity?

单选题Which of the following fiscal policy models is most likely to support the conclusion that the adjustment of money wages to restore full-employment equilibrium is rapid and that without the distorting effects of taxes, long-run equilibrium real output would increase with increases in the labor force and accumulated capital, and with improvements in technology?

单选题Daniel Blair recently joined an investment club with several of his coworkers. Members of the club are generally quite conservative and are unwilling to invest in debt securities with credit ratings below AA. New investments are always evaluated in the context of the overall portfolio. Based on the attributes of the investment club members, they will most likely pursue an investment strategy that:

单选题The following relates to a companys common ecluity over the course of the year: If the companys net income for the year is $5,000,000, its diluted EPS is closest to:

单选题Given the following data during periods of rising prices and stable or increasing inventory quantities : LIFO Inventory = $ 80000 FIFO Inventory = $ 90000 Retained Earnings = $125000 When adjusting the balance sheet from (LIFO) to (FIFO), approximately what is the percent-age change in retained earnings?

单选题The arbitrage-free bond valuation approach can best be described as the: A. use of a single discount factor. B. use of a series of spot interest rates that reflect the current term structure. C. arithmetic average of the spot interest rates.

单选题Tamber Benz, CFA, recently joined Bay Area Investment Group as a personal financial planner. Today, she has a meeting with a client interested in equity index funds, with a particular interest in learning about the source and direction of biases. In preparation for this meeting, she makes some quick notes (relying on her memory). These notes are listed below. She then finds her well-worn CFA study notes and checks her memory. After reviewing her notes, which of the following choices does she determine is least accurate? A. An index such as the Valueline Composite Average is constructed by purchasing an equal number of shares of each stock in the index, and will have a downward bias when geometric averaging is used to compute the return. B. One problem with an index such as the S&P 500 is that firms with greater market capitalization have more impact than other firms. C. A market value-weighted index, such as the New York Stock Exchange Index, accurately reflects the impact of price changes on wealth.

单选题In a test of the mean of a population, if the population variance is: A. known, a z- distributed test statistic is appropriate. B. known, a t- distributed test statistic is appropriate. C. unknown, a z -distributed test statistic is appropriate.

单选题Which of the following types of risk are essentially the same? A. Market risk and unsystematic risk. B. Total risk and the variance of returns. C. Undiversifiable risk and unsystematic risk.

单选题An analyst does research about yield-to-maturity measure. The yield-to-maturity measure for a bond fails to consider the: A. coupon income. B. reinvestment income. C. possibility that the bond is sold prior to maturity.

单选题An analyst determines that four stocks have the following characteristics: Stock Beta Estimated return A 0.6 5% B 1.0 10% C 1.6 16% D 2.0 16% If the risk-free rate is 4% and the expected return on the market is 10%, which of the following statements is least accurate? A. Stock A is overvalued. B. Stock B and D are properly valued. C. Stock C is overvalued.

单选题A hedge fund that implements trades based on a top-down analysis of expected movements in economic variables most likely uses a(n):

单选题Given the following data what is the ending inventory value using the LIFO method?

单选题At the beginning of the year, two companies issued debt with the same market rate, maturity date, and total face value. One company issued coupon-bearing bonds at par and the other company issued zero-coupon bonds. All other factors being equal for that year, compared with the company that issued par bonds, the company that issued zero-coupon debt will most likely report:

单选题Changes in a bond's cash flows associated with changes in yield would be reflected in the bond's:

单选题A firm is choosing among three short-term investment securities: Security 1 - A 30 - day U. S. Treasury bill with a discount yield of 3.6%. Security 2 - A 30 - day banker's acceptance selling at 99.65% of face value. Security 3 - A 30 - day time deposit with a bond equivalent yield of 3.65%. Based only on these securities' yields, the firm would: A. prefer the banker's acceptance. B. prefer the time deposit. C. prefer the U. S. Treasury bill.