单选题Todd Gable, CFA, was attending a noon luncheon when he overheard two software executives talking about a common vendor, Datagen, about how wonderful they thought the company was, and about a rumor that a major brokerage firm was preparing to issue a strong buy recommendation on the stock. Gable returned to the office, checked a couple of online sources, and then placed an order to purchase Datagen in all of his discretionary portfolios. The orders were filled within an hour. Three days later, a brokerage house issued a strong buy recommendation and Datagen's share price went up 20%. Gable then proceeded to gather data on the stock and prepared a report that he dated the day before the stock purchase. Gable has: A. violated the Standards by improper use of inside information. B. violated the Standards by using the recommendation of another brokerage firm in his report. C. violated the Standards by not having a reasonable basis for making the purchase of Datagen.

单选题Osborn Manufacturing uses the NPV and IRR methods as its primary tools for evaluating capital projects. Which of the following most likely describes Osborn Manufacturing with regard to firm ownership and company size? Firm ownership Company size ①A. Public Small ②B. Private Large ③C. Public Large

单选题Concerning efficient financial( including derivative) markets, the most appropriate description is that A. it is often possible to earn abnormal returns. B. the law of one price holds only in the academic literature. C. arbitrage opportunities rarely exist and are quickly eliminated.

单选题Costs included in the determination of a company's economic profit that are also most likely to be included in that company's accounting costs are: A. explicit costs. B. economic depreciation and foregone interest. C. opportunity costs associated with labor provided by the company's owners.

单选题Michael Allen, CFA, works for an investment management company and manages portfolios for a variety of retail and institutional clients for his firm, including his wealthy uncle, all of whom pay a management fee for his services. Lawrence Brown, an analyst at a brokerage firm has recommended Allen a high yield hedge fund based on its historical performance. Allen purchases a large block of this hedge fund and allocates proportionately to all client portfolios, including his uncle's portfolio. Has Allen most likely violated the Standards of Professional Conduct? A. No. B. Yes, relating to suitability. C. Yes, relating to fair dealing.

单选题An asset that will allow people to transfer purchasing power from one period to the next is known as a: A. liquid asset. B. unit of account. C. store of value.

单选题When a risk-free asset is combined with a portfolio of risky assets, which of the following is least accurate?（ ）

单选题An analyst is estimating the cost of capital for her firm. She has estimated the before-tax costs of the current sources of capital to be 8 percent of debt and 9 percent for equity, If the firm's marginal tax rate is 40 percent, the costs of debt and equity she could use in her calculation are closest to:

单选题Compared to a normal distribution, a lognormal distribution is least likely to be: A. skewed to the right. B. skewed to the left. C. useful in describing the distribution of portfolio values.

单选题All else equal, will a decrease in the expected rate of inflation result in a decrease in the: Real risk-free of return Nominal risk-free rate of return ①A. Yes No ②B. Yes Yes ③C. No Yes A. ①B. ②C. ③

单选题Which of the following statements about the security market line (SML) and capital market line (CML) is most accurate? A. The SML is a straight line, but the CML is a curve. B. The SML involves the concept of a risk-free asset, but the CML does not. C. The SML uses beta, but the CML uses standard deviation as the risk measure.

单选题The effectiveness of a monetary or fiscal policy change in combating inflation depends on the level of anticipation (i. e. credibility) the policy change has with the financial markets. Assume that the U. S. economy is currently in long-run economic equilibrium but suffering with unacceptably high inflation, which the Federal Reserve is determined to fight. The Fed could make either an unexpected or an anticipated policy change to reduce inflation. Describe the likelihood of a recession occurring as a result of either type of policy change. Unexpected policy change Anticipated policy change ①A. Recession likely Recession likely ②B. Recession likely Recession unlikely ③C. Recession unlikely Recession likely

单选题The effective annual yield (EAY) for a T-bill maturing in 150 days is 5

单选题Based on the following information, calculate the basic earnings per share. Income after tax: $180000 50000 common stock of $ 5 par: $ 250000 10000, 8% preference share of $ 5 par: $ 50000

单选题The current price of a $1000, 2-year, 4.7% annual coupon bond is $1036.6. The bond"s PVBP is closest to:

单选题Vincent Chase, CFA, is a portfolio manager for an investment advisory firm. Chase delegates some of his supervisory- duties to Janet Marshall, CFA, after educating Marshall on methods to prevent and detect violations of the firms of the firm's compliance procedures. Despite these efforts, Chase discovers that an employee reporting to Marshall may have violated the procedures. According to the Standards of Practice Handbook, Chase's least likely initial course of action must be to: A. suspend the employee. B. increase supervision of Marshall. C. initiate an investigation to determine the extent of the wrongdoing.

单选题An investor bought a 40 put on a stock trading at 43 for a premium of $1. What is the maximum gain on the put and the value of the put at expiration if the stock price is $41 ? Maximum Gain on Put Value of the Put at Expiration ①A. $39 $0 ②B. $4O $2 ③C. unlimited $1

单选题Consider a $/00 par value bond with a 7% coupon paid annually and 5 years to maturity At a discount rate of 65% the value of the bond today is $102

单选题Bailey Watson, CFA manages 25 emerging market pension funds

单选题Funds deposited to meet a margin call are termed as: