单选题A forward rate agreement is equivalent to the following interest rate options:
单选题Which of the following is least likely a feature that monopolistic competition and perfect competition have in common?
单选题Jeffery Marian, an analyst with Arlington Machinery, is estimating a country risk premium to include in his estimate of the cost of equity for a project Arlington is starting in India. Marian has compiled the following information for his analysis: Indian 10-year government bond yield=7.20%. 10-year U. S. Treasury bond yield =4.60%. Annualized standard deviation of the Bombay Sen stock index =40%. Annualized standard deviation of Indian dollar denominated 10-year government bond=24%. Annualized standard deviation of the S&P 500 Index = 18%. The estimated country risk premium for India based on Marian's research is closest to:
单选题Which of the following is determined by the equilibrium between the
demand for money and the supply of money?
A. Inflation rate.
B. Interest rate.
C. Money supply.
单选题An analyst does research about the stock of TNK Industry. For TNK Industry with a price of 27 at the beginning of the period and 30 at the end of the period, the continuously compounded rate of return of TNK Industry is closest to: A. 9.53% B. 10.54% C. 11.11%
单选题Which of the following statements best describes the limits of
arbitrage in correcting market anomalies?
A. When fundamentals indicate that a stock is overvalued or undervalued,
trading based on this information will be immediately profitable.
B. Arbitrage is not always risk-less as was shown during the internet stock
bubble of the 1990s, when traders were short a stock and had to cover their
positions at a much higher takeover price.
C. There is no limitation to arbitrage in correcting market anomalies
because it is a risk-less trading activity and once there is a mispricing it
will be exploited to its fullest.
单选题An analyst writes a report and includes the forecasts of an econometric model developed by the firm's research department. The analyst identifies the source of the forecast and includes all the relevant statistics concerning the model and his opinion of the model's accuracy. With respect to Standard Ⅴ (A) , Diligence and Reasonable Basis, the analyst has: A. violated the Standard by including quantitative details in a report. B. violated the Standard by giving his opinion of the accuracy of a model developed by his research department. C. complied with the Standard.
单选题An analyst finds a stock with historical returns that are not correlated with interest rate changes. The analyst writes a report for his clients that have large allocations in fixed - income instruments and emphasizes the observed lack of correlation. The clients with allocations of fixed income instruments are the only clients to see the report. According to Standard Ⅴ (B) , Communication with Clients and Prospective Clients, the analyst has: A. violated the Standard concerning fair dealings with all clients. B. not violated the Standard. C. violated the Standard by emphasizing the information concerning the correlation.
单选题An analyst is considering two bonds: Bond A yields 7.5% , and Bond B yields 7.0%. Using Bond B as the reference bond, the absolute yield spread and the yield ratio for Bond A are closest to: Spread Ratio ①A. -0.5% 1.07 ②B. -015% 0.93 ③C. 0.5% 1.07
单选题John Maginn, an investment researcher, who is a CFA charter holder, takes a trip for which his firm will pay all the expenses. Upon his return he alters some of the numbers on restaurant receipts to inflate the expenses by $ 52. Is this a violation relating to Professional Misconduct? A. No, because the expense inflated is under $100. B. No, if such behavior is not significant. C. Yes, because it is a crime of moral turpitude.
单选题For a futures trade: A. a single price is determined by supply and demand. B. the seller receives the bid price; the buyer pays the ask price. C. the purchase of the asset is at a negotiated price.
单选题The nominal (quoted) annual interest rate on an automobile loan is 10%
单选题For a given bond, the duration is 8 and the convexity is 50. For a 60 basis point decrease in yield, what is the approximate percentage price change of the bond?
单选题According to the central limit theorem, a sampling distribution of the sample mean will be approximately normal only if:
单选题The following information is from the balance sheet of Silverstone Company: Net Income for 5/1/05 to 5/31/05 : $ 8000
单选题Capital market efficiency is desirable, but there are limitations in achieving full market efficiency . Which of the following is least likely to be a limitation in achieving full capital market efficiency?
单选题Suppose the price of computers increases from $1000 to $1200. Assuming
the original quantity demanded for computers was 50 million units, and the new
quantity demanded is 45 million computers, what is the price elasticity of
demand, and is the demand for computers elastic or inelastic?
A. 0.58, inelastic.
B. -0.58, inelastic.
C. 1.73, elastic.
单选题Project X has an internal rate of return (IRR) of 14%. Project Y has an IRR of 17%. Both projects have simple cash flows (all positive after the initial one). Which of the following statements is most likely correct? If the required rate of return is: A. 14%, the net present value (NPV) of Project Y will exceed the NPV of project X. B. less than 17%, Project Y will always have a shorter payback than Project X. C. greater than 17%, Project Y will always have a shorter payback than Project X.
单选题A company receives a payment of $10000 on 1 December, for rent on a property for December and January. On receipt, they correctly record it as cash and unearned revenue. If at 31 December, their year-end, they failed to make an adjustment entry related to this payment, what is the effect on the financial statements for the year? A. Assets are overstated by $5000 and liabilities are overstated by $5000. B. Assets are overstated by $5000 and owner's equity is overstated by $5000. C. Liabilities are overstated by $5000 and owner's equity is understated by $5000.
单选题Which of the following is NOT an assumption of the constant growth dividend discount model (DDM)?