单选题An analyst does research about capital structure. Which of the following is the least appropriate method to estimate the capital structure weights when a company's target capital structure is unknown to analysis? A. Using the book value of capital components. B. Using industry average capital components. C. Analyzing trends in capital components to infer the target capital structure.
单选题The year-end balances in a company's LIFO reserve are $ 56. 8 million in the company's financial statements for both 2008 and 2009. For 2009, the measure that will most likely be the same regardless of whether the company uses the LIFO or FIFO inventory method is the:
单选题An investor buys a put on a stock selling for $27, with a striking price of $25 for a premium of $4. The maximum gain of the investor is:
单选题The following shows the yearly returns of aggressive equity funds for four years: 1999=+5% 2000=+2% 2001=+1% 2002=-4% Assume that this distribution can represent either the population or a sample of aggressive equity funds. Calculate the population and sample standard deviation. Population Standard Deviation Sample Standard Deviation A. 2.73% 3.99% B. 3.09% 4.55% C. 3.24% 3.74%
单选题A portfolio manager holds the following three bonds, which are option free and have the indicated durations
单选题Debt covenants are restrictions imposed by bondholders on the issuer in order to protect the bondholders' position. Which of the following is least likely to be an area in which restrictions are imposed by debt covenants? A. Issuance of new debt. B. Sinking fund agreements. C. Bond repurchases at a premium to par.
单选题An analyst does research about revenue recognition andgathers the following information about a construction contract with outcome that can be reliably measured: ·Estimated total revenues to be collected is $250000 ·Estimated total costs to be incurred is $175000 ·Cash collected during year 1 is $100000 ·Costs incurred during year l is $ 80 000 Assuming the project will be completed after 4 years, the revenue from the contract recognized for year 1 is closest to? A. $0 B. $142857 C. $114285
单选题According to the Global Investment Performance Standards (GIPS) ,
where existing laws or regulations already impose performance presentation
standards, firms:
A. are strongly encouraged to comply with the GIPS standards in addition to
those local requirements.
B. that comply with local requirements will be in compliance with GIPS as
long as the scope and nature of the conflict is fully disclosed.
C. may choose to comply with local requirements rather than GIPS, but only
with prior approval from the Investment Performance Council (IPC).
单选题An analyst gathered the following information about a common stock portfolio:
●arithmetic mean return 14.3%
●geometric mean return 12.7%
●variance of returns 380
●portfolio beta 1.35
If the risk-free rate of return is 4.25 percent, the coefficient of variation is closest to:
单选题Which of the following items would NOT be included in cash flow from financing? A. Gain on sale of stock of a subsidiary. B. Dividends paid to shareholders. C. Purchase of treasury stock.
单选题Which of the following is NOT an advantage of using price-to-book value multiples in stock valuation? A. Book value provides a relatively stable, intuitive measure of value. B. P/B ratios can be compared across similar firms if accounting standards are consistent. C. Book values are very meaningful for firms in service industries.
单选题Which of the following about correlation of two assets is TURE?
A. The smaller correlation implies smaller risk reduction potential.
B. The smaller correlation implies greater risk reduction potential.
C. The larger correlation implies smaller risk reduction
potential.
单选题Use the results from the following survey of 500 firms to answer the
question.
Number of Employees
Frequency
300 up to 400
40
400 up to 500
62
500 up to 600
78
600 up to 700
101
700 up to 800
131
800 up to 900
88 The frequency
of the third class is:
A. 156.
B. 78.
C. 180.
单选题A firms estimated costs of debt
单选题Which of the following is least likely an implication of risk aversion for the investment process? A. The capital market line (CML) is upward sloping. B. The security market line (SML) is upward sloping. C. The promised yield on AAA bonds is higher than on A bonds.
单选题What is the probable change in price of a 30-year semiannual 6.5 percent coupon, $1000 par value bond yielding 8 percent when the nominal risk-free rate changes from 5 percent to 4 percent?
单选题 An analyst has gathered the following data about a company
with a 12 percent cost of capital.
Project A
Project B
Initial cost
$15000
$20000
Life
5years
4years
Cash inflows
$5000/year
$7500/year
单选题With respect to determining the optimal portfolio for an investor, which of the following statements is most accurate? A. Two investors may choose the same optimal portfolio even if their indifferent curve are different. B. Less risk-averse investors will have steeper utility curves than more riskaverse investors. C. The optimal portfolio lies at the point of tangency between the efficient frontier and indifference curve with the highest possible utility.
单选题An analyst can most accurately identify a LIFO liquidation by observing a(n):
单选题Excess reserves of banks are equal to:
A. required reserves plus demand deposits.
B. required reserves minus actual reserves.
C. actual reserves minus required reserves.