单选题Which form (s) of the efficient market hypothesis (EMH) is/are tested by measuring a security's excess returns with respect to market returns while considering the security's market risk?
单选题The yield to maturity on otherwise identical option-free bonds issued by the U.S. Treasury and a large industrial corporation is 6 percent and 8 percent, respectively. If annual inflation is expected to remain steady at 2.5 percent over the life of the bond, the most likely explanation for the difference in yields is a premium due to:
单选题A 60-day $10 million forward rate agreement (FRA) on 90-day London Interbank Offered Rate (LIBOR) (a 2 × 5 FRA) is priced at 4 percent. If 90-day LIBOR at the expiration date is 4.1 percent, the long:
单选题An analyst does research about forward products. Which of the following statements is the most effective way to terminate a forward contract prior to expiration? A. One party of the forward contract closes the position with a local exchange. B. One party of the forward contract closes the position with the same counterparty. C. One party of the forward contract closes the position with the other counterparty with AAA credit rating.
单选题If the null hypothesis is innocence, then the statement "It is better
that the guilty go free, than the innocent are punished" is an example of
preferring a:
A. type I error over a type Ⅱ error.
B. two tailed test over a one tailed test.
C. type Ⅱ error over a type I error.
单选题Which of the following is a characteristic of perfect competition?
A. There are a few sellers.
B. The products of different firms are sold at different prices.
C. There are no barriers to entry into the market.
单选题Rejesh Sekar, CFA, is a successful hedge fund manager and uses fundamental and technical statistical models to select stocks for his fund. When Bill Mandeville, a client asks him about the indicators underlying his models, Sekar tells Mandeville that his method is confidential but is proven to provide future returns similar to its strong past performance. Sekar has most likely violated the Standards of Professional Conduct: A. only relating to performance presentation. B. only relating to communication with clients and prospective clients. C. both relating to performance presentation and communication with clients and prospective clients.
单选题The owner of a firm gathers some information about her business. This year the firm's revenue is $300000. Cash expenses are $170000. Normal profit is $70000. Economic depreciation is $20000. If the owner could have earned $30000 per year in wages working for another company, the firm's economic profit is closest to: A. $10000 B. $30000 C. $60000
单选题The impact of higher rates of inflation in the long run on real interest rates and on nominal interest rates is: Real rats Nominal rates ①A. Increase Increase ②B. Increase No change ③C. No change Increase
单选题A bond with a par value of $100 matures in 10 years with a coupon of 4
单选题Theoptionpositionillustratedinthefollowingprofit/lossdiagramdepictsa:A.longcallwherethebreakevenis$53.50.B.longcallwherethebreakevenis$46.50.C.shortputwherethebreakevenis$53.50.
单选题Consider a 5-year option-free bond that is priced at a discount to par value
单选题The clearinghouse's futures position is relatively low-risk because: A. all its obligations to deliver are matched to other investors' obligations to make delivery. B. it is highly capitalized and backed by large credit lines. C. of both A and B.
单选题Which of the following institutions are federally-related institutions?
单选题When an economy is in an economic expansion, automatic stabilizers
will tend to alter government spending and taxation so as to:
A. ensure that the budget will remain in balance.
B. reduce the budget deficit (or increase the surplus).
C. enlarge the budget deficit (or reduce the surplus).
单选题A company borrows $15 million from a bank for 1 year at a rate of LIBOR, currently 4.75 percent, plus 50 basis points. At the same time, the company enters a 1-year interest rate swap to pay the fixed rate of 5.25 percent and receive LIBOR. Payments are made on the basis of 180 days in the settlement period. Floating payments are made on the basis of 360 days a year while fixed payments are made on the basis of 365 days a year. LIBOR is 5.00 percent on the first settlement. The company's total interest expense for the loan and swap for the first settlement period is closest to:
单选题The Central Limit Theorem states that, for any distribution, as n gets
larger, the sampling distribution:
A. becomes larger.
B. becomes smaller.
C. approaches a normal distribution.
单选题The best description of the measure of cash flow to use when
estimating the total value of a firm is:
A. the operating free cash flow prior to interest payments on debt.
B. the operating free cash flow prior to interest payments on debt but after
deducting funds needed for capital expenditures.
C. the operating free cash flow after adjustment for payments to debt
holders, but before dividend payments to common stockholders.
单选题The mean monthly return on U.S. Treasury bills ( T - bills) is 0.42 percent. The mean monthly return for an index of small stocks is 4.56 percent, with a standard deviation of 3.56 percent. What is the Sharpe measure for the index of small stocks?
单选题Relative to stock exchanges, OTC stock markets do not: A. trade a higher volume of securities. B. trade a higher market value of securities. C. trade a larger volume of U. S. Government bonds.