单选题The nominal risk-free rate of interest equals the real risk-free rate:
单选题An analyst has gathered the following information: Bond A is an 11 percent annual coupon bond currently trading at 106. 385 and matures in 3 years. The yield-to-maturity (YTM) for Bond A is 8.50 percent. The YTM for a Treasury bond that matures in 3 - years is 7.65 percent. 1, 2, and 3 - year spot rates are 5.0 percent, 6.5 percent and 8.25 percent, respectively. Which of the following statements regarding spreads on bond A is TRUE? A. The nominal spread is approximately 85 basis points. B. The Z-spread is approximately 85 basis points. C. The option-adjusted spread is approximately 75 basis points.
单选题Over the past four years, a portfolio experienced returns of -8%, 4% 17% and -12%
单选题Closed-end funds and exchange traded funds (ETFs) have which of the following characteristics in common? A. Both closed-end funds and ETFs stand ready to redeem shares. B. Shares of both closed-end funds and ETFs trade in the secondary market. C. The structures of closed-end funds and ETFs prevent shares from trading at a significant premium or discount to NAV.
单选题An analyst does research about liquidity. Liquidity in financial markets is best described as the ability to purchase or sell an asset: A. at a low transaction cost. B. quickly at a known price. C. quickly and easily at a price close to fair market value.
单选题Assume that Rajesh Singh's income increased from $20000 per year to $30000 per year, and his demand for "store-brand" bread decreased from 80 loaves to 40 loaves per year. Which of the following most accurately describes Singh's income elasticity for store-brand bread? A. Income elasticity is +1.00 and store-brand bread is a complimentary good. B. Income elasticity is -0.60 and store-brand bread is an inferior good. C. Income elasticity is -1.67 and store-brand bread is an inferior good.
单选题Pinto Corporation is an automobile manufacturer located in North America. Pinto owns a 5 percent interest in one of its suppliers, Continental Supply Company. Each year, Pinto receives a cash dividend from Continental. Pinto' s engine supplier, National Supply Company, recently increased prices on goods sold to all customers due to higher labor costs. Should Pinto report the dividends received from Continental and the price increase from National as an operating or non-operating component on its year-end income statement? Dividends received Price increase ①A. Nonoperating Nonoperating ②B. Operating Operating ③C. Nonoperating Operating
单选题Which of the following statements about return objectives is TRUE?
单选题Vida Knauss, CFA, manages the portfolios of a number of high-net-worth individuals. Which of the following most likely violates the Standards of Professional Conduct relating to suitability when : A. Knauss evaluates the investment in the context of the individual characteristics of the investment alone. B. Knauss evaluates whether the investment is suitable for the client's investment policy statement. C. Knauss evaluates the investment in the context of the client's total portfolio of investments.
单选题For a standard normal distribution, F(0) is:
单选题Most research indicates that there is, at best, only a weak
relationship between budget deficits and interest rates; higher deficits may
simply be matched by high savings. This statement most closely reflects which
one of the following views of fiscal policy?
A. Keynesian theory.
B. Crowding-out theory.
C. New classical theory.
单选题A stock, which currently does not pay a dividend, is expected to pay its first dividend of $1.00 in five years (D
5
=$1.00). Thereafter, the dividend is expected to grow at an annual rate of 25 percent for the next three years and then grow at a constant rate of 5 percent per year thereafter.
The required rate of return is 10. 3 percent. What is the value of the stock today?
单选题The Standards of Professional Conduct relating to market manipulation prohibits members from: A. securing a controlling, dominant position in a financial instrument to exploit and manipulate the price of a related derivative and/or the underlying asset. B. undertaking transactions on legitimate strategies based on perceived market inefficiencies. C. both securing a controlling, dominant position in a financial instrument to exploit and manipulate the price of a related derivative and/or the underlying asset and undertaking transactions on legitimate strategies based on perceived market inefficiencies.
单选题Given the following inventory data about a firm:
Beginning inventory 20 units at $50/unit
Purchased 10 units at $45/unit
Purchased 35 units at $55/unit
Purchased 20 units at $65/unit
Sold 60 units at $80/unit
What is the inventory value at the end of the period using FIFO?（ ）
单选题Wes Smith, CFA, refers many of his clients to Bill Towers, CPA, for accounting services. In return, Towers performs routine services for Smith, such as his tax returns, for no charge. Towers has just become a member of CFA Institute. With this development, Towers must: A. reveal to the prospects referred by Smith that he performs services for Smith, along with the estimated value of those services. B. only reveal to the prospects referred by Smith that he performs services for Smith. C. reveal nothing about his relationship with Smith since they are now both members of CFA Institute.
单选题The most likely objective of government regulation of a natural monopoly is to: A. expand output so consumer demand is fully met. B. provide incentives for potential competitors to enter the market. C. reduce the product price to the supplier's average total cost per unit of output.
单选题Luis Rodriguez, CFA, is an analyst at XYZ Investments. He covers a company that is located in a region that is not easily accessible. The company invites analysts for their annual analyst meeting and pays for the transportation to the remote location. Rodriguez is（ ）
单选题Which of the following statements about balance sheets is most accurate? Under:
单选题An analyst gathered the following data about common stocks J, K, and L, which together form a value-weighted index:
单选题Which of the following statements about the payback period is FALSE? A. The payback period provides a rough measure of a project' s liquidity and risk. B. The payback period is the number of years it takes to recover the original cost of the investment. C. The payback method considers all cash flows throughout the entire life of a project.