单选题An analyst stated that a univariate normal distribution is completely described by only two parameters, and a multivariate normal distribution is completely described by two parameters as well. Is the analyst correct with respect to a: Univariate normal distribution? Multivariate normal distribution? A. No No B. No Yes C. Yes No
单选题Edward Murray and Kelvin Rippen, economists at M-R Associates, are asked for their opinions on the effects of higher-than- expected inflation. Murray states that higher-than-expected inflation hurts lenders and helps borrowers. Rippen contends that higher-than-expected inflation causes the real interest rate to be lower than expected.
Regarding the statements made by Murray and Rippen:
Murray Rippen
①A. Correct Incorrect
②B. Incorrect Correct
③C. Correct Correct
A. ①B. ②C. ③
单选题During 2007, Brownfield Incorporated purchased $140 million of inventory. For the year just ended, Brownfield reported cost of goods sold of $130 million. Inventory at year-end was $45 million. Calculate inventory turnover for the year.
单选题Which accounting methods are preferable for income statements and balance sheets? A. LIFO for the balance sheet and FIFO for the income statement. B. LIFO for both income statements and balance sheets. C. LIFO for income statements and FIFO for the balance sheet.
单选题A Treasury bond due in one-year has a yield of 8.5 percent. A Treasury bond due in 5 years has a yield of 9.3 percent. A bond issued by General Motors due in 5 years has a yield of 9.9 percent. A bond issued by Exxon due in one year has a yield of 9.4 percent. The default risk premiums on the bonds issued by Exxon and General Motors are:
Exxon General Motors
①A. 0.1% 0.6%
②B. 0.1% 1.4%
③C. 0.9% 0.6%
A. ①B. ②C. ③
单选题Day and Associates is experiencing a period of abnormal growth. The last dividend paid by Day was $0.75. Next year, they anticipate growth in dividends and earnings of 25 percent followed by negative 5 percent growth in the second year. The company will level off to a normal growth rate of 8 percent in year three and is expected to maintain an 8 percent growth rate for the foreseeable future. Investors require a 12 percent rate of return on Day.
What is the approximate amount that an investor would be willing to pay today for the two years of abnormal dividends?
单选题Selected information from a companys recent income statement and balance sheets is presented below,
The company operates in an industry in which suppliers offer terms of 2/10, net 30. The payables turnover for the average company in the industry is 8.5 times. Which of the following statements is most accurate? In 2011, the company on average:
单选题Nick O'Donnell, CFA, unsuspectingly joins the research team at Wickett ＆ Co., an investment banking firm controlled by organized crime. None of the managers at Wickett are CFA Institute members. Because of his tenuous situation at Wickett, O'Donnell begins making preparations for independent practice. He knows he will be terminated if he informs management at Wickett that he is preparing to leave. Consequently, he determines that "if he can just hang on for one year, he will likely have a client base sufficient for him to strike out on his own." This action is: A. a violation of his duty to disclose conflicts to his employer. B. a violation of his fiduciary duties. C. not a violation of his duty to employer.
单选题Alan Mulally, CFA, is a securities analyst covering IT industry. Mulally finds that 10% of companies he follows filed for bankruptcy. Mulally then conducts a bankruptcy scoring test on all companies and finds that: ·70% of companies passed the test, and ·75% of companies passed the test, given they did not file for bankruptcy. Using Bayes' formula, given it passed the test, the probability a company filed for bankruptcy is closest to: A. 3.33% B. 3.57% C. 8.33%
单选题Which of the following is least likely to result from an increase in
the rate of growth in the money supply?
A. A higher nominal risk-flee rate.
B. A higher real risk-free rate.
C. Higher expected inflation.
单选题Which of the following statements is FALSE? A. In a currency swap, the notional principal is actually swapped twice, once at the beginning of the swap and again at the termination of the swap. B. The time frame of a swap is called its tenor. C. In a currency swap, only net interest payments are made.
单选题An analyst does research about impact to option due to interest rate and volatility of the underlying. Which of the following statements best describes the effect of the level of interest rates and volatility of the underlying on the price of options? All else being equal, prices for: A. put options are positively related to the level of interest rates. B. call options are positively related to the level of interest rates. C. put options are negatively related to the volatility of the underlying.
单选题When an analyst is unsure of the underlying population distribution, which of the following is least likely to increase the reliability of parameter estimates?
单选题Under the classification system used by the U.S. Bureau of Labor
Statistics, which of the following people would NOT be considered unemployed?
Someone who:
A. was terminated from his last job.
B. quit and is looking for new work.
C. is disabled and unable to return to work.
单选题Hui Chen, CFA, develops marking materials for an investment fund he founded three years ago. The materials show the 3-, 2-and 1-year returns for the fund. He includes a footnote that sates in small print. "Past performance does not guarantee future returns." He also includes a separate sheet showing the most recent semiannual and quarterly returns, which have been neither audited nor verified. According to the Standards of Practice Handbook, has Chen violated any Standards of Practice? A. No. B. Yes, because he included un-audited and unverified results. C. Yes, because he did not adhere to the global investment performance standards.
单选题A recessionary gap is most likely to be observed when:
单选题A real estate agent contacts an investor regarding a property that has recently come on the market. The real estate agent can provide reliable information regarding the propertys net operating income, as well as the prevailing market cap rate, based on recent comparable sales. The investor can best estimate the market value of the property, with the information supplied by the real estate agent, using the（ ）
单选题Which of the following is least likely to be cited as a limitation of
discretionary fiscal policy stabilizers?
A. Changes in the business cycle are difficult to predict.
B. Taxes paid by households increase as incomes rise.
C. Legal changes are delayed while legislators debate fiscal policy
issues.
单选题Which of the following is least likely to be a general feature underlying the preparation of financial statements within the IFRS Conceptual Framework?
单选题An analyst gathered the following data about a company: Current liabilities are $ 300. Total debt is $ 900. Working capital is $ 200. Capital expenditures are $ 250. Total assets are $ 2000. Cash flow from operations is $ 400. If the company would like a current ratio of 2, they could : A. decrease current assets by 100 or increase current liabilities by 50. B. decrease current assets by 100 or decrease current liabilities by 50. C. increase current assets by 100 or decrease current liabilities by 50.