单选题Which of the following most accurately describes the shape of the
average fixed cost (AFC) curve? The AFC curve:
A. is always below the average variable cost curve.
B. has the same shape as the average total cost curve.
C. becomes flatter as output increases.
单选题An analyst calculating the unemployed rate is most likely to classify
as unemployed persons who are:
A. retired.
B. not looking for work.
C. temporarily laid off from a job.
单选题Peggy Green, CFA, is a research analyst following Brown Co. All the information she has gathered suggests the stock should be rated a weak "hold" . During a recent lunch, Green overheard another analyst say that the stock should be rated a "buy". Green returns to her office and issues a "buy" recommendation. Green: A. violated CFA Institute Standards of Professional Conduct because she did not seek approval of the change from her firm's compliance director. B. has violated CFA Institute Standards of Professional of Conduct because she did not have a reasonable and adequate basis for making this recommendation. C. is in full compliance with CFA Institute Standards of Professional Conduct.
单选题Exactly one year ago, an investor purchased a $1000 face value, zero- coupon bond with 11 years remaining to maturity. The YTM was 8.0%. Now, one year later, with market rates unchanged, an investor purchases an annuity that pays $ 40 every six months for 10 years. The combined value of the two investments based on the 8% BEY is approximately:
单选题Which of the following is irrelevant in determining project cash flow for a capital investment?（ ）
单选题A municipal bond selling at 12% above par offers a yield of 3.2%. A taxable Treasury note selling at an 8% discount offers a yield of 4. 6%. An investor in the 32.5% tax bracket wishes to purchase an equal dollar amount of both bonds. The after-tax yield of the two-bond portfolio is closest to:
单选题Which of the following statements is the most appropriate treatment of flotation costs for capital budgeting purposes? Flotation costs should be:
单选题What is the present value of a 7 percent semi-annual pay corporate bond with a $1000 face value and 20 years to maturity if it is yielding 6. 375 percent?? If a municipal bond is yielding 4.16 percent and an investors marginal tax rate is 35 percent, would the investor prefer the corporate bond or the municipal bond? Value Investor preference ①A. $1121.23 municipal bond ②B. $1070.09 corporate bond ③C. $1070.09 municipal bond
单选题On January 3, Logan Industries deposited $1000000 in cash at Federal Savings Bank. No excess reserves were present at the time Logan made the deposit and the required reserve ratio is 10%. What is the maximum amount by which Federal Savings Bank can increase its lending?
单选题On 1 January, Hellens portfolio is valued at $1000000. Hellen want to make a $100000 payment to buy a house on 31 December of the same year, but does not want the year-end portfolio value to fall below $1000000. The expected annual return on the investors existing portfolio is 15 percent with an expected standards deviation of 20 percent. The risk-free rate is 8%. The safety-first ratio for the portfolio is closest to（ ）
单选题Which of the following would most likely indicate deterioration of a firms working capital management?（ ）
单选题Assume the holder of a long futures position negotiates privately with the holder of a short futures position to accept delivery to dose out both the long and short positions. Which of the following statements about the transaction is most correct? The transaction is: A. also known as delivery. B. also known as an exchange of physicals. C. the most common way to close a futures position.
单选题An analyst does research about redeemed bonds. A company issues bonds at a discount, and reports their amortized historical cost. The company redeems the bonds before maturity, when they are trading at a premium. Which of the following statements is most accurate? A. Bonds payable is reduced by the amount of the bonds' market value. B. Bonds payable is increased by the amount of the bonds' face value. C. Bonds payable is reduced by the amount of the bonds' carrying value.
单选题A level payment, fixed-rate, fully amortizing mortgage loan for $220,000 is obtained with a term of 15 years, a mortgage rate of 6
单选题Why is convexity a good thing for a bond holder? Because when compared to a low convexity bonds a high convexity bond: A. has better price changes regardless of the direction of the yield change. B. is more sensitive to interest rate changes, increasing the potential payoff. C. has improved estimation of price changes.
单选题All else held equal, the duration of bonds selling at higher yields compared to bonds selling at lower yields will be:
单选题Which of the following statements regarding yield spreads is least
accurate? The:
A. option cost in percentage terms can be computed by subtracting the OAS
from the zero-volatility spread.
B. nominal yield spread measures the difference between the YTM on a risky
bond and the YTM on a Treasury bond of similar maturity.
C. zero-volatility spread is the constant spread that is added to each
Treasury spot rate to equate the present value of a bond's cash flows to the
price of an otherwise identical option-free bond.
单选题Antonio Conti consumes 2 pounds of beef per week when beef is $4.50
per pound and 3 pounds of chicken when chicken sells for $ 3.50 per pound. If
the price of chicken increases to $ 4.00 per pound, Conti's consumption of beef
increases to 2.5 pounds per week. Which of the following most accurately
describes Conti's cross elasticity of demand for beef versus chicken? The cross
elasticity of demand for:
A. beef relative to chicken is +1.67 and beef and chicken are complimentary
goods.
B. beef relative to chicken is +1.67 and beef and chicken are
substitutes.
C. chicken relative to beef is +1.75 and beef and chicken are
substitutes.
单选题Consider a universe of ten bond from which an investor will ultimately purchase seven bond for his portfolio. If the order in which he buys these bonds is ignored, how many potential 5-bond combinations are there?
单选题ABC has an expected return of 18% and a standard deviation of 20%