单选题GaryMcDermottrunsatwo-personinvestmentmanagementfirm.McDermottinvestsastockbyanequalamountofmoneyintoafamilyaccounteachyearforfouryearsasfollows:McDermott'saveragecostpershareisclosestto:A.17.04B.17.64C.18.25

单选题Given the following information, what is the adjustment to net income when calculating cash flow from operations using the indirect method? Increase in accounts payable of $ 25. Sold one share of stock for $15. Paid dividends of $10 to shareholders. Depreciation expense of $100. Increase in inventory of $ 20. A. $50. B. $95. C. + $105.

单选题Which of the following statements regarding a bond being called is TRUE? Call prices are known as regular redemption prices when bonds are called at: A. under the call provisions specified in the bond indenture. B. at a discount. C. at a premium.

单选题An investor can exit a forward position prior to contract expiration by all of the following methods EXCEPT: A. entering into an offsetting contract with the original counterparty or a second (different) counterparty. B. exercising the early delivery option. C. making a cash payment or accepting a cash payment by agreement with the original counterparty.

单选题The slope of the security market line (SM L) represents the portion of an assets expected return attributable to:

单选题Ileana Inkster, CFA, was recently offered a senior management position within the trust department at a regional bank

单选题Assume a good becomes illegal to buy or sell, and the expected penalty for selling the good is greater than that for buying the good. Relative to when the good was legal:

单选题A noncallable, AA-rated zero-coupon bond with a yield of 7% is least likely to have: A. default risk. B. interest rate risk. C. reinvestment risk.

单选题Which of the following statements least accurately describes the advantages and disadvantages of valuation with the P/S multiple?

单选题A company that capitalizes costs instead of expensing costs would have : A. higher income variability and higher cash flows from operations. B. lower cash flows from investing and lower income variability. C. lower cash flows from operations and higher profitability in early years.

单选题A 10-year bond is issued on January 1, 2010

单选题The production of a rock concert is an example of which type of organization of an economic activity?

单选题A firm had revenue per share of $300 in the year of 2008, earnings per share of $3, and paid out 40% of its earnings as dividends. If the return on equity (ROE) and required rate of return of the firm are 14% and 12% respectively, what is the appropriate P/S multiple for the firm?

单选题Which of the following is not a component of the CFA Institute Code of Ethics?

单选题An analyst does research about Nash Equilibrium. With respect to game theory, which of the following describes the condition that two colluding firms in an oligopoly market are a Nash Equilibrium? A. Neither firm cheats. B. Only one firm cheats. C. Both firm cheat.

单选题At a recent seminar on Capital Market Efficiency, David Thorngate, a seasoned arbitrageur wanted to dispel the notion that all arbitrage trades are successful. During his speech, he made the following statements regarding arbitrage and the ability of arbitrageurs to correct market anomalies: Statement 1: There are limits on the ability of arbitrage to bring about efficient prices. Arbitrage is frequently not risk-less. Just because fundamentals indicate that one stock is undervalued or overvalued relative to another does not mean that trading on this information will be profitable. Statement 2: Even in "pairs trading," where an arbitrageur buys the underpriced security and shorts the overpriced security, significant risk from stock-specific factors remains. So, there is no guarantee that even correctly identified relative mispricings of similar stocks will be corrected in the near term. Are Statement 1 and Statement 2 as made by Thorngate correct? Statement 1 Statement 2 ①A. Correct Correct ②B. Incorrect Incorrect ③C. Correct Incorrect A. ①B. ②C. ③

单选题Which of the following statements about capitalizing expenses and depreciation is most accurate? A. The capitalization of a marketing expenditure (instead of expensing it immediately) will result in an increase in fixed asset turnover ratio. B. The sum-of-years-digits depreciation method charges the largest amount of depreciation in the first year and then decreases at a declining rate each subsequent year. C. The sum-of-years-digits depreciation method charges the largest amount of depreciation in the first year and then decreases by a constant amount each subsequent year.

单选题If investors' expected future incomes increase, all else constant, interest rates will: A. fall, while an increase in the demand for financial capital will cause rates to rise. B. rise, while an increase in the demand for financial capital will cause rates to fall. C. rise, while an increase in the demand for financial capital will also cause rates to rise.

单选题Scott, CFA, is an analyst for M&D Investment Managers. He has recently accepted an invitation to visit the facilities of ChemCo, a producer of chemical compounds, ChemCo offers to pay for Scott"s accommodations in a penthouse suite at a luxury hotel and allow Scott to use the firm"s private jet to travel to its three facilities located in New York, Boston and Philadelphia. In addition, ChemCo offers two tickets to a high-society dinner in New York and a calculator with the ChemCo logo. Scott declines to use Chemco"s corporate jet or to allow the firm to pay for his accommodations but accepts the calculator and the tickets to the dinner (which he discloses to his employer) since he will be able to market his firm"s mutual funds to other guests at the dinner. Has Scott violated the Code and Standards?

单选题United Corporation and Intrepid Company are similar firms operating in the same industry. United follows U.S. Generally Accepted Accounting Principles and Intrepid follows International Financial Reporting Standards. At the end of last year, Intrepid had a higher inventory turnover ratio than Intrepid. Are the following plausible explanations for the difference? Explanation 1: United accounts for its inventory using the first-in, first-out method and Intrepid uses the last-in, first-out method. Explanation 2: United recognized an upward valuation of inventory that had been previously written down. Intrepid does not revalue its inventory upward. Explanation 1 Explanation 2 ① No Yes ② Yes No ③ No No