单选题Rochelle Dixon is delivering a presentation on best practices for corporate governance. Two of her recommendations are as follows: Statement 1: To avoid the potential for harming shareholders' interests by wasting company resources, the Board of Directors should get management's approval before it hires outside consultants. Statement 2: The more members a Board of Directors has, the more likely it is to represent shareholders' interests fairly. Are Dixon's statements correct? Statement 1 Statement 2 ①A. Correct Correct ②B. Incorrect Incorrect ③C. Correct Incorrect A．① B．② C．③

单选题Scott, CFA, is an analyst for M&D Investment Managers. He has recently accepted an invitation to visit the facilities of ChemCo, a producer of chemical compounds, ChemCo offers to pay for Scott's accommodations in a penthouse suite at a luxury hotel and allow Scott to use the firm's private jet to travel to its three facilities located in New York, Boston and Philadelphia. In addition, ChemCo offers two tickets to a high-society dinner in New York and a calculator with the ChemCo logo. Scott declines to use Chemco's corporate jet or to allow the firm to pay for his accommodations but accepts the calculator and the tickets to the dinner (which he discloses to his employer) since he will be able to market his firm's mutual funds to other guests at the dinner. Has Scott violated the Code and Standards? A. Yes. B. No, since he is using the gifts accepted to benefit his employer's interests. C. No, since the gifts he accepts were fully disclosed in writing to his employer.

单选题Firms with which of the following characteristics are most likely candidates for a management buyout (MBO)?

单选题If no other unbiased estimator of the same parameter has a sampling distribution with smaller variance, the estimator can be best described as: A. efficiency. B. unbiasedness. C. consistency.

单选题In behavioral finance, the tendency to seek out good news and ignore bad news is called:

单选题An analyst collects the following information regarding spot rates of interest: 1-year rate=4%. 2-year rate=5%. 3-year rate=6%. 4-year rate=7%. Utilizing the pure expectations theory of the term structure of interest rates, the expected annualized 2-year interest rate two years from today will be:

单选题Firms that prepare their financial statements according to International Financial Reporting Standards (IFRS) are least likely to: A. revalues balance sheet assets upward. B. use last-in, first-out inventory accounting. C. use proportionate consolidation for a joint venture.

单选题A bond priced at par ($1000) has a modified duration of 8 and a convexity of 50. If interest rates fall 50 basis points, the bonds price goes to approximately（ ）

单选题If no other estimator of a given parameter has a sampling distribution with a smaller variance, the estimator used is best characterized as（ ）

单选题An analyst gathered the following information about a perpetual preferred stock and a common stock issued by the same company

单选题At a recent seminar on Capital Market Efficiency, David Thorngate, a seasoned arbitrageur wanted to dispel the notion that all arbitrage trades are successful. During his speech, he made the following statements regarding arbitrage and the ability of arbitrageurs to correct market anomalies: Statement 1: There are limits on the ability of arbitrage to bring about efficient prices. Arbitrage is frequently not risk-less. Just because fundamentals indicate that one stock is undervalued or overvalued relative to another does not mean that trading on this information will be profitable. Statement 2: Even in "pairs trading," where an arbitrageur buys the underpriced security and shorts the overpriced security, significant risk from stock-specific factors remains. So, there is no guarantee that even correctly identified relative mispricings of similar stocks will be corrected in the near term. Are Statement 1 and Statement 2 as made by Thorngate correct? Statement 1 Statement 2 ①A. Correct Correct ②B. Incorrect Incorrect ③C. Correct Incorrect

单选题A company will experience a 30% growth rate over the next four years and pay no dividends over that time period. Growth will then fall to 5%, at which time the company will institute a 30% payout ratio. If the expected dividend in year 5 is projected to be $3 per share and the required return is 12%, what is the firm"s intrinsic value today?

单选题Selected financial information gathered from the Matador Corporation follows:

单选题Which of the following statements concerning security valuation is least accurate? A. A stock with a dividend last year of $ 3.25 per share, an expected dividend growth rate of 3.5%, and a required return of 12.5% is estimated to be worth $36.11. B. A stock to be held for two years with a year-end dividend of $2.20 per share, an estimated value of $20.00 at the end of two years, and a required return of 15% is estimated to be worth $18.70 currently. C. A preferred stock with a dividend of $3.00 per share and a required return of 11.5% is estimated to be worth $ 26.09 currently.

单选题The relevant 1-year,2-year, and 3-year spot rates are 3.25% ,3.35%, and 3.65%. A 3-year annual-pay bond with a 7% coupon rate and a $10000 face value is priced at $10850. What is the amount of potential arbitrage profit available from the mis-pricing of this bond?

单选题Which of the following best describes the elasticities of supply for renewable and non-renewable resources ? Renewable resource Non-renewable resource ①A. Elastic Perfectly elastic ②B. Perfectly inelastic Perfectly elastic ③C. Inelastic Perfectly inelastic

单选题Which of the following is included in both the M1 and M2 measures of money?

单选题Stock A has a standard deviation of O. 5 and Stock B has a standard deviation of 0.3. Stock A and Stock B are perfectly positively correlated. According to Markowitz portfolio theory how much should be invested in each stock to minimize the portfolio's standard deviation? A. 100% in Stock A. B. 50% in Stock A and 50% in Stock B. C. 100% in Stock B.

单选题Which of the following is NOT a recommended procedure for complying with the Standards of Professional Conduct relating to priority of transactions? A. Limit participation in equity IPOs. B. Establish blackout or restricted periods. C. Disclose all personal securities holding to public.

单选题The preferred stock of the Delco Investments Company has a par value of $150 and a dividend of $11.50. A shareholder"s required return on this stock is 14%. What is the maximum price he would pay?