单选题Using the Markowitz model, calculation of the portfolio standard deviation does not require the: A. Expected rate of return on the market portfolio. B. Variance of each individual asset in the portfolio. C. Weight of each individual asset in the portfolio, where the weight is determined by the portfolio value.
单选题At a recent staff meeting of Economic Advisers Inc. , a think-tank located in Washington, DC, Mitchell Jung made the following statements regarding the main economic functions of depository institutions. Statement 1: One of the main economic functions of depository institutions is to act as financial intermediaries. By doing so, they lower the borrowers' cost of funds from what it would otherwise be if borrowers had to seek out individuals willing to lend. Statement 2: Depository institutions create liquidity by using loans they take in to have funds available to pay interest on short-term deposits. Are Statement 1 and Statement 2 as made by Jung correct? Statement 1 Statement 2 ①A. Incorrect Incorrect ②B. Correct Incorrect ③C. Incorrect Correct
单选题Which of the following is NOT a characteristic of perfect competition? A. The products produced within a given market are homogenous. B. The demand curve for an individual firm is a vertical line. C. The size of each firm is small relative to the size of the overall market.
单选题An analyst gathered the following information about Weston Chemical's stock: Estimated sales per share=$12.19 Earnings before interest, taxes, depreciation, and amortization (EBITDA)=73% Interest expense per share=$ 2.07 Depreciation expense per share=$ 6.21 The tax rate=35% Weston's estimated Earnings per Share (EPS) is closest to:
单选题Using the lower of cost or market principle under U. S. GAAP, if the
market value of inventory falls below its historical cost, the minimum value at
which the inventory can be reported in the financial statements is the:
A. net realizable value.
B. market price minus selling costs minus normal profit margin.
C. net realizable value minus selling costs.
单选题If a 10 percent income increase caused a group of consumers to increase their purchases of television sets from 95 to 105, the group's income elasticity of demand for television sets would be closest to:
单选题U.S. banks will generally opt to hold excess reserves if they believe
general business conditions in the U.S. economy are subject to greater
uncertainty. If all else is held constant, what is the most likely impact of
this action?
A. The money supply will decrease.
B. The money supply will increase during a period of inflation, but will
decrease if the economy goes into a recession.
C. There will be no effect on the money supply.
单选题Stanley Crux, CFA, a portfolio manager at NWS Asset Management Ltd, calls a friend to join him for dinner. The friend, a financial analyst at D&M Corporation declines the invitation and explains that she is performing due diligence on Orca Electronics, a company that D&M is about to acquire. After the phone call, Crux searches the Internet for any news of the acquisition but finds nothing. Upon verifying that Orca is on NWS"s approved stock list, Crux purchases Orca"s common stock and call options for the NWS clients. Two weeks later, D&M announces its intention to acquire Orca. The next day, Crux sells all of the Orca securities, giving the fund a profit of $3 million. According to the Standards of Practice Handbook, did Crux violate any CFA Institute Standards of Professional Conduct?
单选题A CFA charter holder who comes to work intoxicated is: A. in violation of Standard Ⅳ (A) concerning duties to employer. B. not in violation of the standards. C. in violation of Standard Ⅰ (D) concerning professional misconduct.
单选题A company has debt equal to $ 35 million and total assets of $105 million. This company makes a commitment to acquire raw materials over the next three years by making annual purchases of $ 5 million which have a present value of $12 million. For purposes of analysis, the best estimate of the debt-to-equity ratio after the appropriate analyst adjustment of the balance sheet is :
单选题For a positively skewed unimodal distribution, which of the following measures is most accurately described as the largest?
单选题Some forward contracts are termed cash settlement contracts. This means: A. either the long or the short in the forward contract will make a cash payment at contract expiration and the asset is not delivered. B. at settlement, the long purchases the asset from the short for cash. C. at contract expiration, the long can buy the asset from the short or pay the difference between the market price of the asset and the contract price.
单选题Thefollowingprofit/lossdiagramisforwhattypeofposition?A.Longput.B.Longstock,longput(portfolioinsurance).C.Longstock,shortcall(coveredcall).
单选题When using delivery as a method to close a futures contract, completion is usually achieved: A. when the trader transacts in the futures market to bring his or her net position in particular futures contract back to zero. B. when two traders agree to a simultaneous exchange of a cash commodity and futures contracts based on that cash commodity. C. through the physical delivery of a particular good or by cash settlement.
单选题The correlation between rates of return for stock X and stock Y is
1.0. X and Y have standard deviations of 22% and 34% , respectively. Which of
the following portfolios has the lowest risk?
A. 90%X, 10%Y.
B. 50% X, 50% Y.
C. 10% X, 90% Y.
单选题Joe DeRita is giving an economic briefing before the Senate Banking Committee. During his testimony, Senator Morris Howard states, "Based on the Phillips curve relationship, if we increase the inflation rate from 3% to 5% , we can achieve a reduction in the rate of unemployment in both the short run and the long run. " Senator Lawrence Fine adds, "Furthermore, if the central bank is able to credibly announce that they will maintain the money supply growth rate, so that the increased inflation rate is well anticipated, borrowers, lenders, workers, and employers will incorporate the new higher rate of inflation into long-term contracts, so there will be no adverse impact on the economy. " Should DeRita agree or disagree with the two Senators?
M. Howard L. Fine
①A. Agree Agree
②B. Agree Disagree
③C. Disagree Disagree
A. ①B. ②C. ③
单选题A fund of funds investing is least likely to provide its investors with which of the following advantages?
单选题An analyst does research about covariance and gathers the following joint probability function for the return of two securities. Security 1 Return=10% Security 1 Return=15% Security 2 Return=6% 0.0 0.4 Security 2 Return=12% 0.6 0.0 The covariance of returns between the two securities is closest to: A. -4.8 B. -7.2 C. -8.4
单选题During 2007, Big 4 Company' s warehouse was totally destroyed by a tornado. Tornados are very rare in the region where Big 4 is located. The book value of the warehouse at the time of the tornado was 10 million and Big 4 is self-insured. In addition, on June 30, 2007, Big 4 acquired one of its major suppliers. The fair value of the net assets acquired by Big 4 was greater than the purchase price. According to International Financial Reporting Standards, should Big 4 recognize an extraordinary item for tornado damage and should Big 4 recognize negative goodwill on its balance sheet due to the acquisition? Extraordinary loss Negative goodwill ①A. No Yes ②B. Yes No ③C. No No
单选题An analyst, who is a CFA Institute member, manages a high-grade bond mutual fund. This is his only professional responsibility. When the analyst comes across a speculative stock investment that he feels is a good investment for his personal portfolio, the analyst（ ）