单选题The arithmetic mean and geometric mean returns of the following series of stock market returns are（ ）
单选题123, Inc has entered into a "plain-vanilla" interest rate swap on $10000000 notional principal. 123 company receives a fixed rate of 6.5 percent on payments that occur at monthly intervals. Platteville Investments, a swap broker, negotiates with another firm, PPS, to take the pay-fixed side of the swap. The floating rate payment is based on LIBOR ( currently at 4.8 percent). At the time of the next payment (due in exactly one month), 123, Inc will:
单选题Which of the following is least likely to be an incentive for structuring a lease as an operating lease instead of a capital lease? A. The period of use is short relative to the overall life of the asset. B. The lessee is in a high tax bracket and the lessor is in a low tax bracket. C. Corporate bond covenants contain specific covenants relating to financial policies that the company must follow.
单选题An analyst does research about deferred tax asset and liability and gathers the following information about a company: Pre-tax accounting profit $26000 Depreciation expense for accountmg purposes $2100 Depreciation expense for tax $3000 Income tax rate 35% Assuming there are no other differences between accounting and tax profit, the company most likely records: A. A deferred tax asset of $315. B. A deferred tax liability of $315. C. A deferred tax liability of $585.
单选题With respect to the security market line, if two risky assets have the same covariance with the market portfolio but have different estimated rates of return, the most accurate conclusion is that the two risky assets have: A. the same amount of systematic risk, and both assets are properly valued. B. different amount of systematic risk, and both assets are properly valued. C. The same amount of systematic risk, and at least one of the assets is either overvalued or undervalued.
单选题According to the pure expectations theory, an upward-sloping yield curve implies:
单选题The economy is in recession, and counter cyclical fiscal policy has been enacted. If the policy has been effective and the AD curve has moved upward to the right, the result is:
单选题Considerthegraphbelow.Assumeatraderownsasharecurrentlypricedat$100.Shewritesacalloptiononthissharewithanexercisepriceof$110andanassumedpriceof$4.Foranystockpricelessthanorequalto$110A.sheis$14betteroffwiththecoveredcallthanshewouldbewiththestockalone.B.sheis$4worseoffwiththecoveredcallthanshewouldbewiththestockalone.C.sheis$4betteroffwiththecoveredcallthanshewouldbewiththestockalone.
单选题Comet Corporation is a capital intensive, growing firm. Comet operates in an inflationary environment and its inventory quantities are stable. Which of the following accounting methods will cause Comet to report a lower price-to-book ratio, all else equal? Inventory method Depreciation method A. First-in, First-out Accelerated B. First-in, First-out Straight-line C. Last-in, First-out Straight-line
单选题A BBB-rated corporation wishes to issue debt to finance its operations at the lowest cost possible
单选题The point of tangency between the capital allocation line (CAL) and the efficient frontier of risky assets most likely identifies the:
单选题Suppose you expect the computer industry to have a dividend payout ratio of 20% a return on equity of 22%, and a required return of 19%. Use microanalysis to estimate the earnings multiplier for the industry.
单选题A company is planning a $50 million expansion. The expansion is to be financed by selling $20 million in new debt and $30 million in new common stock. The before-tax required return on debt is 9 percent and 14 percent for equity. If the company is in the 40 percent tax bracket, what is the marginal weighted average cost of capital?
单选题An analyst is doing research about the change of bond value to the passage of time and gathered the following information about an option-free bond. The bond has 6 percent coupon and an annual discount rate of 5 percent, pays interest semiannually, matures in five years, and is valued at $1043.76. One year later, the annual discount rate for that bond is 4.5 percent. At this time, the change in value for this bond that is attributable only to change of interest rate is closest to: A. -$18.50 B. $7.91 C. $18.50
单选题A random variable follows a continuous uniform distribution over 27 to 89. What is the probability of an outcome between 34 and 38?
单选题Compared with public equity markets, which of the following statements is most accurate about private equity markets? Operating in the private market:
单选题An analyst does research aboutportfolio duration and gathers the following information about a portfolio consisting of two bonds: Bond Par Value Market Value Duration 1 $400000 $380000 6 9 $600000 $620000 4 The portfolio's duration is closest to: A. 4.76 B. 4.80 C. 5.24
单选题Compared with using the FIFO (first in, first out) method to account for inventory, during a period of rising prices, which of the following is most likely higher for a company using LIFO (last in, first out)?
单选题A random sample of 64 supermarket customer spent an average of $43. Assuming the distribution is normal and the population standard deviation is $15, the 90% confidence interval for the population mean is closest to:
单选题Colin Gifford, CFA is finalizing a monthly newsletter to his clients, who are primarily individual investors