单选题During the seminar, "Inflation - Friend or Foe?" Joe Lebow, an analyst with Greenwald & Associates, was discussing the difference between inflation and price level. He made the following two statements:
Statement 1: To measure the inflation rate of a currency, one should calculate the annual percentage change in the price level. The calculation of this change shows the connection between the inflation rate and the price level.
Statement 2: The higher the price level in the current year compared to the price level in the previous year, the higher is the inflation rate of a country. Any increase in the price level is evidence of (positive) inflation.
Are the statements as made by Lebow regarding inflation and price levels correct?
Statement 1 Statement 2
①A. Incorrect Incorrect
②B. Correct Correct
③C. Correct Incorrect
A. ①B. ②C. ③
单选题Which of the following statements best describes the fund-of-funds (FOF) class of hedge funds? A fund of funds: A. allows smaller investors to participate in the venture capital market. B. is open to institutional investors for the purpose of seeking arbitrage situations in hedge fund pricing. C. allows smaller investors to access the hedge funds market.
单选题Thefollowinginformationisavailablefromacompanyscurrentfinancialdata,preparedaccordingtoUSGAAP:Thepensionexpense(in$thousands)reportedinthecurrentyearisclosestto:
单选题Externalities, in reference to a particular good, are most likely to impact:
单选题The investment policy statement is important to investors because（ ）
单选题The greatest amount of detailed capital budgeting analysis is typically required when deciding whether to: A. expands production capacity. B. replaces a functioning machine with a newer model to reduce costs. C. introduces a new product or develops a new market.
单选题Given the following information, compute price/sales. Book value of assets = $550000 Total sales = $200000 Net income = $20000 Dividend payout ratio = 30% Operating cash flow = $40000 Price per share = $100 Shares outstanding = 1000 Book value of liabilities = $500000 A. 2.00X. B. 2.50X. C. 0.50X.
单选题Which of the following statements about types of nonrecurring items is least accurate? A. Unusual or infrequent items are included in income from continuing operations. B. Extraordinary items are unusual and infrequent items that are reported net of taxes and included in nonrecurring income from continuing operations. C. Discontinued operations are reported net of taxes below income from continuing operations.
单选题Thefollowinginformationisfromacompanysinvestmentportfolio:IftheinvestmentisreclassifiedasAvailable-for-saleasof31December2010,thebalancesheetcarryingvalueofthecompanysinvestmentportfoliowouldmostlikely:
单选题This information pertains to equipment owned by Brigade Company. Cost of equipment $10000 Estimated residual value $ 2000 Estimated useful life 5 years Depreciation method Straight-line The accumulated depreciation at the end of year 3 is:
单选题Assume the following capital lease: Present value (PV) of lease payments at 12 percent is $25000. The leased asset is depreciated straight line over 6 years. The lease payment is $ 6000. The first payment of $ 6000 is to be paid at the end of the year. What is the second year's interest expense and principal payment? Interest Expense Principal Payout ①A. $ 0 $ 6000
②B. $ 3000 $ 3000
③C. $ 2640 $ 3360
单选题Which of the following best explains the slope of the yield curve?
A. The term spread between the yields of two maturities.
B. The credit spread between two securities with different maturities.
C. The nominal spread between two securities with different
maturities.
单选题In a competitive market, the gains to society are maximized under which of the conditions described below? Marginal Benefit Marginal Cost Producer Surplus Consumer Surplus ①A. $1.25 $1.00 $25 $25 ②B. $1.50 $1.50 $45 $30 ③C. $2.50 $2.50 $35 $35
单选题Which of the following statements regarding the value of the firm is most accurate? A. A company's legal and treasury departments act to reduce the tax rate from 37.5% to 37.0% , the value of the firm will increase. B. The government engages in a restrictive monetary policy and the expected inflation rate decreases, the P/E ratio will decrease. C. The board of directors increases the dividend payout ratio, the value of the company will increase.
单选题With respect to the Standards of Professional Conduct relating to diligence and reasonable basis, which of the following statements is least accurate? A member needs to: A. ensure that his firm has standardized criteria for reviewing external advisers. B. have an understanding of the parameters used in the model or quantitative research. C. dissociate from team research reports that do not reflect the member's opinion.
单选题The table below summarizes the yields and corresponding price for a
hypothetical 15 -year option-free bond that is initially priced to sell at 7%
yield: Yield (%) Price ($)
6.90% 100.925 47.00
% 100.0000 7.10%
99.0861 Using a 10 basis point rate
shock, the effective duration for this bond closest to:
A. 4.6 years.
B. 7.5 years.
C. 9.2 years.
单选题Which of the following most accurately describes the generational effects of fiscal policy?
单选题Consider a $10000000 1-year quarterly-pay swap with a fixed rate of 4.5 percent and a floating rate of 90-day London Interbank Offered Rate (LIBOR) plus 150 basis points. 90-day LIBOR is currently 3 percent and the current forward rates for the next four quarters are 3.2 percent, 3.6 percent, 3.8 percent, and 4 percent. If these rates are actually realized, at the termination of the swap the floating-rate payer will（ ）
单选题A minimum wage set above the equilibrium minimum wage will most likely
have which of the following effects?
A. It will have no effects.
B. Unemployment will rise.
C. There will be a shortage of workers.
单选题Using the following information about spot rates, what is the price of a three-year bond with $100 par and annual coupon payments of 5 percent? One-year rate: 4.78% Two-year rate: 5.56% Three-year rate: 5.98%