单选题An analyst determines that four stocks have the following characteristics:
Stock
Beta
Estimated return
A
B
C
D
0.6
1.0
1.6
2.0
5%
10%
16%
16% If the risk-free rate is 4 percent and the expected return on the market is 10 percent, which of the following statements is FALSE? A. Stock A is overvalued. B. Stock D is overvalued. C. Stock B is properly valuced and Stock C is undervalued.
单选题The demand for the product of a purely competitive firm is:
单选题Which of the following statements about portfolio risk is true?
A. In the absence of perfectly positive correlation, a portfolio will always
have lower risk than the average risk of the component assets.
B. In the absence of perfectly positive correlation, a portfolio will always
have lower risk than the risk of each of the component assets.
C. In the absence of perfectly negative correlation, a portfolio will always
have lower risk than the average risk of the component assets.
单选题Which of the following activities will least likely constitute a violation of Standard Ⅳ (A), Loyalty? A. Conspiracy to bring about a mass resignation of other employees. B. Consulting on your own time and obtaining written permission from your employer. C. Self-dealing, taking the employer's property or information.
单选题Which of the following statements about theories of the yield curve is most likely correct? A. A liquidity preference cannot be consistent with a flat term structure of interest rates. B. The liquidity preference theory suggests that a downward-sloping term structure of interest rates is due to investors expecting short-term rates to decline, and although there is a maturity premium to consider, it is not large enough to offset the expectation of declining short-term rates. C. The pure expectations theory suggests that an upward-sloping term structure of interest rates is a consequence of investors expecting short-term rates to remain unchanged for a period of time, followed by investors expecting short-term rates to rise for a period of time.
单选题Are a firm's demand for labor and a firm's demand for physical capital more elastic in the long run or in the short run?
Demand for labor more elastic in the: Demand for physical capital more elastic in the:
①A. short run short run
②B. long run long run
③C. short run long run
A. ①B. ②C. ③
单选题What would be the impact on a firm" s return on assets ratio (ROA) of the following independent transactions, assuming ROA is less than one?
Transaction 1: A firm owned investment securities that were classified as available-for-sale and there was a recent decrease in the fair value of these securities.
Transaction 2: A firm owned investment securities that were classified as available-for-trading and there was recent increase in the fair value of the securities.
Transaction 1 Transaction 2
① Higher Lower
② Higher Higher
③ Lower Higher
单选题Monopolistic competition differs from pure monopoly in that: A. barriers to entry are high under monopoly, but low under monopolistic competition. B. monopolistic competitors are price takers, monopolists are not. C. monopolistic competitors face downward sloping demand curves, monopolists do not.
单选题An analyst gathered the following financial information about a
company:
estimated EPS
$2
dividend payout ratio
30%
required rate of return
10%
expected long-term growth rate of dividends
5% What should the analyst estimate
the value of this company's stock to be?
A. $8.7
B. $12.0
C. $13.5
单选题Under perfect competition, a firm will be inclined to increase output as long as which of the following conditions exists?
单选题Let A and B be two mutually exclusive events with P(A) =0.40 and P(B)=0.20. Therefore :
单选题An equity fund manager is considering a market index as benchmark for his portfolio and he has the following preferences:
the index should have a contrarian effect;
shares held by controlling shareholders should not be excluded;
dividends should be included in the weighting of constituent securities; and
the weights of constituent securities should not be arbitrarily determined by the index provider
单选题An investor is considering the purchase of two bonds. One of the bonds is tax-exempt and yields 4.5% while the other bond is taxable and yields 6.0%. If the two bonds are alike in all other characteristics, the marginal tax rate that would make the investor indifferent between the two bonds is closest to:
单选题Which of the following references violates the Standards of Professional Conduct relating to reference to CFA Institute, the CFA Designation and the CFA Program? A. CFA, Level Ⅱ. B. CFA, 2011, CFA Institute. C. Level Ⅰ candidate in the CFA program.
单选题Which of the following statements about portfolio risk is true? A. In the absence of perfectly positive correlation, a portfolio will always have lower risk than the average risk of the component assets. B. In the absence of perfectly positive correlation, a portfolio will always have lower risk than the risk of each of the component assets. C. In the absence of perfectly negative correlation, a portfolio will always have lower risk than the risk of each of the component assets.
单选题Jack Steyn, CFA, recently became the head of the trading desk at a large investment managementfirm that specializes in domestic equities
单选题Which of the following statements about project risk is FALSE?（ ）
单选题An investor in exchange traded funds (ETFs) is most likely to benefit from its:
单选题Prema Singh is the book keeper for Octabius Industries. Singh has been asked by the CFO of Oetabius to review all purchases that occurred between February 1 and February 8 to investigate an error on the receiving dock. Singh will most likely look at the:
单选题Which of the following statements about the implications of tests for
the efficient market hypothesis (EMH) is least accurate?
A. By purchasing an index fund, an investor can match the market return and
minimize costs.
B. Other than corporate insiders and market specialists, most traders have
monopolistic access to information, which rejects the strong-form EMH.
C. The best way to measure the performance of investments professionals is
against a randomly selected buy-hold strategy of stocks (assuming the same risk
level).