单选题Which of the following is least likely to be considered an objective of financial market regulation according to the International Organization of Securities Commissions (IOSCO) ? A. Protect investors. B. Reduce systemic risk. C. Develop individual financial regulatory standards for each country to reflect the unique needs of each market.
单选题Selected information from Ingot Company' s financial statements for
the year ended December 31,2004, was as follows prior to the consideration of
its impaired asset write-down ( in $ ) :
Cash
120000
Accounts Payable
290000
Accounts Receivable
200000
Deferred Tax Liability
740000
Inventory
300000
Long-term Debt
800000
Property, Plant & Eq.(net)
{{U}}1700000{{/U}}
Conunon Stock
{{U}}490000{{/U}}
Total Assets
2320000
Retained Earnings
2320000 Ingot
Company' s excavation machine is permanently impaired. Its purchase price
was $1600000 and its accumulated depreciation was $ 800000
through 2004. The present value of its future cash flows is $ 500000. The
write-down of the excavation machine will cause Ingot' s total debt ratio (total
debt-to-total capital) to:
A. increase from 0.44 to 0.51.
B. increase from 0.44 to 0.48.
C. decrease from 0.44 to 0.40.
单选题A nursery sells trees of different types and heights. Suppose that 75 pine trees are sold for planting at City Hall. These 75 trees average 60 inches in height with a standard deviation of 16 inches. Using this information, construct a 95 percent confidence interval for the mean height of all trees in the nursery:
单选题A non-callable bond with 18 years remaining maturity has an annual coupon of 7 percent and a $1000 par value. The current yield to maturity on the bond is 8 percent. Which of the following is closest to the effective duration of the bond?
单选题Which of the following is NOT a key characteristic of the Global Investment Performance Standards (GIPS) ? GIPS : A. represent the highest performance measurement and presentation practice worldwide. B. are ethical standards for investment performance presentation to ensure fair representation and full disclosure of an investment firm's performance history. C. require managers to include all actual fee - paying and non - fee - paying discretionary portfolios in composites defined according to similar strategy and/or investment objective.
单选题An investor does research about net present value and gathers the information about two trust products with the same positive annual payments to investor. One is a 20-year ordinary annuity, and the other is a 10-year ordinary annuity. If the investor uses the same positive discount rate to analyze both products, the present value of the lO-year ordinary annuity is: A. less than half the present value of the 20-year ordinary annuity. B. equal to half the present value of the 20-year ordinary annuity. C. greater than half the present value of the 20-year ordinary annuity.
单选题An analyst gathered the following data about a company:
Capial Srucure
Required Rate of Return
30 percent debt
10 percent for debt
20 percent preferred stock
11 percent for preferred sock
50 percent common stock
18 percent for common stock
Assuming a 40 percent tax rate, what after-tax rate of return must the company earn on its investments?（ ）
单选题As the director of capital budgeting for Denver Corporation, an analyst is evaluating two mutually exclusive projects with the following net cash flows:
Year
Project X
Project Y
0
-$100000
-$100000
1
$50000
$10000
2
$40000
$30000
3
$30000
$40000
If Denvers cost of capital is 15 percent, which project should be chosen?（ ）
单选题Economics commentator Gail Brythe is discussing the different factors that influence the elasticity of supply. She states the following: Statement 1: Elasticity of supply is greater when a good or service can only be produced with unique or rare inputs. Statement 2: Typically, a good's momentary supply elasticity is higher than its short-run supply elasticity, which in tuna is higher than its long-run supply elasticity. Are Brythe's statements correct? Statement 1 Statement 2 ①A. Correct Correct ②B. Correct Incorrect ③C. Incorrect Incorrect
单选题Are the following two statements about the elasticity of labor demand correct? Statement 1: Labor demand is more elastic in the short run than in the long run because other factors of production are fixed in the short run. Statement 2: The more labor-intensive a firm's production processes, the more elastic the firm's demand for labor will be. Statement 1 Statement 2 ①A. Correct Correct ②B. Correct Incorrect ③C. Incorrect Correct
单选题Assuming a bond has an effective duration of 5.3 and a convexity of 84.7. Using both of these measures, the estimated percentage change in price for this bond, in response to a decline in yield of 150 basis points, is closest to:
单选题A firm' s financial statements reflect the following information:
单选题Which of the following transactions would least likely be reported in the cash flow statement as investing cash flows? A. Purchase of real estate with cash borrowed from a bank. B. Sale of held-to-maturity securities for cash. C. Purchase of plant and equipment used in the manufacturing process with financing provided by the seller.
单选题Which of the following is most representative of forward contracts and contingent claims? Forward Contracts Contingent Claims A. Premium paid at inception Premium paid at inception B. Premium paid at inception No premium paid at inception C. No premium paid at inception Premium paid at inception
单选题Which school of economic thought holds that unpredictable changes in
central bank policy are the primary cause of business cycles?
A. Classical.
B. Keynesian.
C. Monetarist.
单选题If central bank actions caused the risk-free rate to increase, the cost of debt and equity capital would most likely: Cost of debt capital Cost of equity capital ①A. increase increase ②B. increase decrease ③C. decrease increase
单选题Given investors require an annual return of 12.5 percent, a perpetual
bond (i. e. , a bond with no maturity/due date) that pays $ 87.50 a year in
interest should be valued at :
A. $1093.
B. $875.
C. $700.
单选题Roland Carlson, CFA, is a quantitative analyst in a regional securities firm. Because the p-value is exactly the same as the specified significance level, Carlson rejects a null hypothesis. The probability Carlson made a Type Ⅱ error is: A. less than the probability Carlson made a Type Ⅰ error. B. equal to the probability Carlson made a Type Ⅰ error. C. greater than the probability Carlson made a Type Ⅰ error.
单选题An expansionary fiscal policy is most likely associated with:
单选题A return-generating model that provides an estimate of the expected return of a security based on such factors as earnings growth and cash flow generation is best described as a: