单选题An analyst does research about borrowing funds to purchase bonds. The sale of a security with a commitment by the seller to buy the same security back from the purchaser at a specified price at a designated future date is best described as: A. margin buying. B. negotiable CDs. C. a repurchase agreement.
单选题An analyst does research about cash flow statement. With respect to the cash flow statement, a significant issuance of stock as a dividend is most likely reported: A. as an investing cash flow. B. as a financing cash flow. C. in a note to the cash flow statement.
单选题Which of the following most accurately describes society's allocation of resources to the production of goods with external costs or external benefits? External costs External benefits ①A. Over-allocation Over-allocation ②B. Under-allocation Under-allocation ③C. Over-allocation Under-allocation
单选题At the start of a month, a retailer paid $5,000 in cash for different types of candies
单选题Stock A has an expected return of 18% and a standard deviation of 40%. Stock B has an expected return of 12% and a standard deviation of 20%. The correlation between returns for A and B is 0.35. Which of the following statements is true for portfolios comprised of only A and B? A. Any investor holding only A and B can always reduce risk by increasing the proportion of B in his portfolio. B. Many investors can reduce risk by increasing the proportion of B, but at some point additional B will increase portfolio risk. C. For any investor, portfolio risk is independent of the proportions of A and B held.
单选题An investor purchases a 10 - year, $1000 par value bond that pays
annual coupons of $100. If the market rate of interest is 12 percent, what is
the current market value of the bond?
A. $ 950.
B. $1100.
C. $ 887.
单选题Which of the following investments most likely provides an investor with indirect equity exposure to real estate?
单选题A monopolist will expand production until MR=MC and charge a price
determined by the:
A. demand curve.
B. marginal cost curve.
C. average total cost curve.
单选题Jennifer Frye, CFA, is comparing the financial performance of a firm that presents its results under IFRS to that of a firm that complies with U.S. GAAP. The U.S. firm uses the LIFO method for inventory accounting and the other firm uses the FIFO method. If Frye performs the appropriate adjustments to make the U.S. firm" s financial statements comparable to the firm that reports under IFRS, her adjustments are least likely to change the firm" s :
单选题Krista Blume, CFA, is a portf'olio manager for pension plans at a large global investment management company. Blume is hired by the management of Advanced Automatic Company (AAC) to manage a pension plan for AAC's employees. Blume must report performance results to the board and management of AAC monthly. To which of the following is most likely Blume's loyalty to clients owned? A. Employees of AAC. B. Management of AAC. C. Board of directors of AAC.
单选题Which of the following statements regarding capital budgeting is correct? A firm"s optimal capital budget can be found by moving along its investment opportunity schedule until:
单选题If households are holding larger real money balances than they desire, which of the following is least likely? A. The opportunity cost of holding money balances will decrease. B. Households will bid up securities prices. C. The central bank must sell securities to absorb the excess money supply and establish equilibrium.
单选题Given the following information about a company:
Receivables turnover = 10 times
Payables turnover = 12 times
Inventory turnover = 8 times
What are the average receivables collection period, the average payables payment period, and
the average inventory processing period respectively?
Average Receivables Average Payables Average Inventory
Collection Period Payment Period Processing Period
①A. 37 30 52
②B. 37 45 46
③C. 37 30 46
单选题Vega research has been conducting investor polls for Third State Bank. They have found the most investors are not willing to tie up their money in a 1-year (2-year) CD unless they receive at least 1.0% (1.5%) more than they would on an ordinary savings account. If the savings account rate is 3%, and the bank wants to raise funds with 2-year CDs, the yield must be at least: A. 4.0%, and this represents a required rate of return. B. 4.5%, and this represents a discount rate. C. 4.5%, and this represents a required rate of return.
单选题A client calls his money manager and asks the manager to liquidate a large portion of his assets under management for an emergency. The manager warns the client of the risk of selling many assets quickly but says that he will try to get the client the best possible price. This is a violation of: A. Standard Ⅲ (C) , Suitability. B. Standard Ⅴ (B) , Communication with Clients and Prospective Clients. C. none of the Standards listed here.
单选题Which of the following statements about statistical concepts is FALSE? A. A frequency distribution is a tabular display of data summarized into a relatively small number of intervals. B. An interval is a set of return values within which an observation falls. C. A sample contains all members of a specified group, but a population contains only a subset.
单选题Regarding corporate governance, which of the following most likely would be a reason for concern when evaluating an independent board member's qualifications? The board member: A. has served on the board for 14 years. B. owns 1000 shares of the corporation's equity. C. has formerly served on the boards of several successful companies.
单选题Which of the following statements about the valuation of an option-free bond is most likely correct? Other things equal: A. whether the bond's value will increase or decrease when rates increase depends on whether the bond is selling at a discount, at par, or at a premium. B. the value of a long-term bond is more sensitive to interest rate changes than the value of a short-term bond. C. the value of a low-coupon bond is less sensitive to interest rate changes than the value of a high-coupon bond.
单选题Bug-Be-Gone is a residential pest control company that offers a
12 month home-service contract to eliminate insect infestation. Customers are
required to prepay for the service at the beginning of each year. If Bug-Be-Gone
erroneously records these payments as revenue and include the estimated cost of
performing the service, what is the most likely effect on the firm' s
liabilities and equity compared to the correct
treatment? Liabilities
Equity ①A. Understated
Overstated ②B. Overstated
Overstated ③C. Understated
Understated
A. ①
B. ②
C.③
单选题A portfolio manager is required to sell 31,250 shares of XYZ Inc