单选题An analyst gathered the following financial statement information about a company: Preferred stock $60 million Common stocks and additionals paid in capital $90 million Retained earnings $307 million Total number of common shares outstanding 10 million Tax rate 30% The analyst also determined that the company uses the LIFO inventory method, but most companies in the industry use the FIFO method. The footnotes to the financial statements indicate that if the company had used the FIFO method, the inventory balance would have been $40 million higher than the amount reported on the company's most recent financial statements. The most appropriate book value per share to use in computing the company's price to book value ratio is: A. $42.5 B. $43.7 C. $47.5
单选题The motivation for entering into a swap agreement is that: A. it provides firms that face financial risks with a flexible way to manage that risk. B. it provides firms that face financial risks with a fixed way to manage that risk. C. it gives you an ability to swap amongst a diverse range of products.
单选题Which of the following statements is generally not true regarding an investment in gold? A. Gold has typically experienced a low correlation with stock markets. B. Gold has normally high liquidity. C. Gold traditionally has provided a high expected return.
单选题An investor buys a call option with a $25 exercise price priced at $4 and writes a call option with a $40 exercise price priced at $2.50. If the Price of the stock increases to $50 at expiration and the options are exercised on the expiration date, the net profit at expiration (ignoring transaction costs) is:
单选题Which of the following statements regarding the option adjusted spread (OAS) is least accurate? The option adjusted spread: A. is used to adjust for the cost of the embedded option. B. is the spread that accounts for non-option characteristics like credit risk, liquidity risk, and interest rate risk. C. for a putable bond is the Z-spread minus the cost of the option.
单选题Given the conditional probabilities in the table below and the unconditional probabilities P(Y=1)=0.4 and P(Y=2)=0.6, what is the expected value of X?
x
i
P(x
i
|Y=1)
P(x
i
|Y=2)
3
0.7
0.2
4
0.3
0.8
单选题Withrespecttoverification,whichofthefollowingstatementsismostaccurateaccordingtotheGlobalInvestmentPerformanceStandards()?A.Verificationmustbeperformedbythefirminordertoclaimcompliance.B.Verificationbringsadditionalcredibilityandconfidencetoafirm'sclaimofcompliance.C.Verificationguaranteestheaccuracyofaspecificcompositepresentation.
单选题On the settlement date of a forward contract:
单选题The combination of currency in circulation, banks' reserve deposits at
the central bank, and coins issued by the Treasury is referred to as the:
A. M1 money supply.
B. liquid money supply.
C. monetary base.
单选题John Cupp, CFA, has several hundred clients. The values of the portfolios Cupp manages are approximately normally distributed with a mean of $ 800000 and a standard deviation of $ 250000. The probability of a randomly selected portfolio being in excess of $1000000 is :
单选题If the risk-free rate of interest is 5 percent and an investor
enters into a transaction that has no risk, the rate of return the investor
should earn in the absence of arbitrage opportunities is
A. 0%.
B. between 0% and 5%.
C. 5%.
单选题A firm in a perfectly competitive industry that seeks to maximize profit is most likely to continue production in the short run as long as which of the following conditions exists? Price is equal to or greater than :
单选题An analyst does research about cash received from customers and gathers the following information about a company for a fiscal year (in millions): Revenues $4989 Beginning accounts receivable $2341 Ending accounts receivable $2102 Depreciation $211 Under the direct method of computing cash flow operating activities, cash received from customers for the year is closest to: A. $4750 B. $5017 C. $5228
单选题An analyst does research about shareholders voting. With respect to shareholders voting for a candidate for the board of directors, which of the following is most likely to allow shareholders to direct their total voting rights to specific candidates? A. Statutory voting. B. Cumulative voting. C. Proxy voting.
单选题Asset allocation is important in determining overall investment
performance because it:
A. helps determine the expected return of the portfolio.
B. determines most of the portfolio's returns over time.
C. helps determine the standard deviation of the portfolio.
单选题Which of the following best describes taxes payable? A. Total liability for current and future taxes. B. Tax return liability resulting form current period taxable income. C. Actual cash outflow for income taxes including payments for other years.
单选题Cody Scott would like to screen potential equity investments to identify value stocks and selects firms that have low price-to-sales ratios. Unfortunately, screening stocks based only on this criterion may result in stocks that have poor profitability or high financial leverage, which are undesirable to Scott. Which of the following filters could be added to the stock screen to best control for poor profitability and high financial leverage? Filter 1—Include only stocks with a debt-to-equity ratio that is above a certain benchmark value. Filter 2—Include only dividend paying stocks. Filter 3—Include only stocks with an assets-to-equity ratio that is below a certain benchmark value. Filter 4—Include only stocks with a positive return-on-equity. Poor profitability High financial leverage ①A. Filter 2 Filter 3
②B. Filter 2 Filter 1
③C. Filter 4 Filter 3
单选题The following data applies to the XTC Company: Sales = $1000000 Receivable = $ 260000 Net Income = $ 50000 COGS = $ 800000 Total Assets = $ 800000 Payables = $ 600000 Debt/Equity = 200% Inventory = $ 400000 What is the average collection period, the average inventory processing period, and the payables payment period respectively for XTC Company? Average Average Inventory Payables Collection Period Processing Period Payments Period ①A. 55 days 195 clays 231 days ②B. 95 days 183 clays 274 days ③C. 45 days 45 days 132 clays
单选题Duration is most accurate as a measure of interest rate risk for a bond portfolio when the slope of the yield curve:
单选题Assuming a firm does not currently have excessive debt, a decrease in leverage will most likely cause the firm's stock price to: