单选题An analyst does research about equity valuation of Yelp Industry. Yelp's dividend growth rate is 6% and its dividend retention ratio is 60%. If the justified forward price-to-earnings ratio on Yelp's stock is 16, the implied required rate of return on equity is closest to: A. 3.50% B. 8.50% C. 9.75%
单选题A $1000 par value, 10% semiannual, 20 - year debenture 1s currently
selling for $1100. The bond's current yield is:
A. 8.9%.
B. 9. 1%.
C. 10.0%.
单选题The correlation derived from a historical analysis of bond market returns in the U.S. and in Canada is 0.72. Which of the following statements is true? A. When the U. S. market has a below average performance, the Canadian market is likely to have a below average performance. B. When the U. S. market rises 1%, the Canadian market rises 0.72%. C. When the U. S. market rises, the Canadian market is more likely to decrease than increase.
单选题In the early years of an asset' s life, a firm that chooses an accelerated depreciation method instead of using straight-line depreciation will tend to have: A. lower net income and lower equity. B. higher assets and higher net income. C. higher return on equity and higher return on assets.
单选题Jori England, CFA candidate, is studying the value of callable bonds. She has the following information: a callable bond with a call option value calculated at 1.75 (prices are quoted as a percent of par) and a straight bond similar in all other aspects priced at 98.0. Which of the following choices is closest to what England calculates as the value for the callable bond?
单选题For years, John Berger, a CFA charterholder and CEO of a company, relied upon a set of reasonable procedures for preventing violations of the Standards of Practice in the firm. The company has recently arranged to have members of CFA Institute as mid-level supervisors throughout the firm. With this arrangement Berger has delegated the supervision of employees with respect to the Code and Standards to the mid-level managers. With this action Berger: A. is still responsible for seeing that procedures are in place to prevent violations of the Code and Standards. B. is relieved of his obligation to supervise the employees under the mid-level supervisors. C. has violated Standard Ⅳ (C), Responsibilities of Supervisors.
单选题Analysts who look for patterns and trends in security prices for buy and sell signals are called:
单选题Theresa Green, CFA, manages the portfolio of Ian Knowlden, a client of Tisbury Investments. Green knows that Knowlden is preparing to sell a large position in the Franklin Industries, a relatively small inactively-traded stock listing in a local exchange. Green places a sell order for Franklin Industries in his own account before the Knowlden's order is placed. Green has most likely violated the Standard(s) of Professional Conduct relating to: A. only material non-public information. B. only priority of transactions. C. both material nonpublic informationand priority of transactions.
单选题Which of the following statements about how various embedded options benefit the issuers or the bondholders is least accurate? The（ ）
单选题Three firms operate under perfect competition
单选题Which of the following most accurately describes how to standardize a random variable X?
单选题Daisy, CFA, is a portfolio manager for several wealthy clients including Dennis. Daisy manages Dennis"s personal portfolio and bond investments. Dennis recently told Colin that he is under investigation by the Internal Revenue Service (IRS) for tax evasion related to his business, Dennis Software. After learning about the information, Daisy proceeds to inform a friend at a local investment bank so that they may withdraw their proposal to take Dennis Software public. Which of the following is most likely correct? Daisy:
单选题Etienne Gagne, CFA, is an independent research analyst covering some unknown small companies and its shares are traded over-the-counter. Gagne is hired to write research report about these small companies who pay him for her service. Gagne issues research reports on these small companies to retail and institutional clients who also pay him for his research report. Gagne doesn' t disclose these small companies' payment to her research clients. Has Gagne most likely violated the Standards of Professional Conduct? A. No. B. Yes, relating to refeITal fees. C. Yes, relating to conflicts of interests.
单选题In the first year of operation, a firm produces taxable income of - $30000. The prevailing tax rate is 30%. The firm"s balance sheet will report a deferred tax:
单选题The effectiveness of a monetary or fiscal policy change in combating inflation depends on the level of anticipation (i. e. credibility) the policy change has with the financial markets. Assume that the U. S. economy is currently in long-run economic equilibrium but suffering with unacceptably high inflation, which the Federal Reserve is determined to fight. The Fed could make either an unexpected or an anticipated policy change to reduce inflation. Describe the likelihood of a recession occurring as a result of either type of policy change.
Unexpected policy change Anticipated policy change
①A. Recession likely Recession likely
②B. Recession likely Recession unlikely
③C. Recession unlikely Recession likely
A. ①B. ②C. ③
单选题Which of the following statements about the market portfolio and the capital market line (CML) is least accurate? The market portfolio: A. assumes an equal amount is invested in each risky asset. B. is perfectly positively correlated with other portfolios on the CML. C. allows the elimination of all unsystematic risk at every point along the CML.
单选题Which inventory method will provide a larger net income during periods of falling prices?
单选题An analyst does research about cash flow statement and gathers the following information about an IT company (in millions). Cash at the beginning of 2011 $490 Cash at the ending of 2011 $505 Cash flows from operating activities in 2011 $32 Cash flows from investing activities in 2011 $30 Which of the following transactions, on its own, best explains the change in cash flows from the beginning of the year? The company: A. issued $47 millions in bonds in 2011. B. repurchased $47 millions of its stock in 2011. C. increased long-term assets by $47 millions in 2011.
单选题An investor does research about option and purchases a call option with the following terms: Strike price $320 Multiplier 250 If the price of the underlying is $306.94 at expiration, the option payoff to this investor is closest to: A. $0 B. $13 C. $3265
单选题Which of the following statements most accurately describes the
relationship between marginal product (MP) and average product (AP) of labor in
the short run? As the quantity of output increases:
A. AP is always less than MP.
B. initially, AP＜MP, then AP=MP, then AP＞MP.
C. initially, AP＞MP, then AP=MP, then AP＜MP.