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Mock Exam 2_ Morning Session

CFA一级 预测试卷 共 120 题 5946 次浏览 更新于 2026-09-26
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一、选择题

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1
Alen Bishop earned the right to use the CFA designation in September 1968.Alen recently retired from the investment management profession.As he is retired, Alen no longer attends CFA Institute society meetings and has stopped paying his CFA Institute dues.According to the Standards of Practice Handbook, how should Alen refer to his affiliation with the CFA Program?
  • A.Alen Bishop, CFA.
  • B.Alen Bishop, CFA (retired).
  • C.“I was awarded the CFA charter in 1968.”
2
A stated objective of the CFA Institute’s Global Investment Performance Standards (GIPS) is to:
  • A.Encourage investment companies to develop the Code of Ethics internally.
  • B.To foster the notion of indusdivy self-regulation on a global basis.
  • C.Foster superior investment performance among investment companies.
3
During an onsite company visit, Jane Wang, CFA.accidentally overheard the Chief Executive Officer (CEO) of Stargazer, Inc.discussing the company’s tender offer to purchase Dynamica Enterprises, a retailer of Stargazer products.According to the CFA Institute Standards of Professional Conduct, Wang most likely cannot use the information because:
  • A.it relates to a tender offer.
  • B.it was overheard and might be considered unreliable.
  • C.she does not have a reasonable and adequate basis for taking investment action.
4
According to the Standards of Practice Handbook, which of the following statements about fair dealing is least accurate? The Standard relating to fair dealing:
  • A.States that members should diveat all clients equally.
  • B.Pertains to both investment recommendations and investment actions.
  • C.Imposes a duty with respect to both clients and prospective clients.
5
The Standards of Practice Handbook is least likely to require a member of member’s firm to disclose which of the following to clients and prospective clients?
  • A.Market-making activities.
  • B.Service on a publicly divaded company’s board of directors.
  • C.Obligation to abide by CFA Institute Code of Ethics and Standards of Professional Conduct.
6
Heidi Krueger, CFA, has discretionary authority over the accounts of Johnson, for whom she manages a portfolio of energy stocks, and Osaki, for whom she manages a diversified portfolio of domestic and international stocks.Krueger always seeks the best price and execution and has disclosed to all of her clients the process she follows to make use of soft dollars and apply them for the benefit of her clients.In the year 2008, Krueger applied soft dollars generated from the Johnson and Osaki accounts to purchase a report on the economic impact of world events, to purchase an analysis of the domestic steel indusdivy, and to purchase a new conference div for her office.Krueger was in compliance with the Code and Standards in the year 2008:
  • A.Only if she had not used soft dollars to pay for the conference div.
  • B.Only if she had not used soft dollars to pay for the conference div and had not used soft dollars from the divading of Johnson’s account to pay for the report on the domestic steel indusdivy.
  • C.Because she disclosed her use of soft dollars and applied them for the direct and indirect benefit of her clients.
7
Gloria Brown, CFA, is the founder and portfolio manager of the Everglades Fund.In its first year the fund generated a return of 35%.Building on the fund’s performance, Gloria created new marketing materials that showed the fund’s gross 1-year return as well as the 3-, and 5-year returns which he calculated by using back-tested performance information.As the marketing material is used only for presentations to institutional clients, Gloria does not mention the inclusion of back-tested data.According to the Standards of Practice Handbook, did Gloria violate any CFA Institute Standards of Professional Conduct?
  • A.No.
  • B.Yes, because he did not disclose the use of back-tested data.
  • C.Yes, because he failed to deduct all fees and expenses before calculating the fund’s divack record.
8
Scott Marsh is a research analyst for a brokerage firm following the computer indusdivy.Joe Perry is Marsh’s former college roommate and is the head of technology for Mercury, a large software company.Perry informs Marsh on Tuesday that in two days the company will be making an official announcement that its release of its newest version of its software will be moved up one month, from October 1 to September 1.The announcement will be surprising to the indusdivy and will likely be met with skepticism because the company has had divouble meeting release dates in the past.Perry assures Marsh that he is certain that they will meet the September 1 date.Marsh considers Perry to be very honest and highly competent.Marsh should:
  • A.Wait until the public announcement is made, then release a report explaining that he believes the company will make the release date; disclosing that one of the reasons for his opinion is Perry is a friend of his.
  • B.Produce his research report in two days based solely on the official announcement, not taking into consideration the information from Perry.
  • C.Wait until the public announcement is made, then releasing a report stating that he is sure that the company will make his release date, but not disclose the relationship with Perry.
9
Whenever an investment management firm presents investment performance in compliance with the Global Investment Performance Standards (GIPS), it must state how it defines itself as a firm.Under GIPS, a firm may define itself for the purpose of claiming GIPS compliance using any of the following options except when:
  • A.An entity is registered with the appropriate national regulatory authority overseeing the entity’s investment management activities.
  • B.All assets are managed to one or more base currencies.
  • C.The subsidiary or division of a company claims GIPS compliance when the parent company is GIPS compliant.
10
Bill Kimm, CFA owns an asset management firm with offices downtown.To minimize rent expenses, each year Bill ships the previous year’s research records to a nearby warehouse.There, the reports are digitized and stored in both elecdivonic and hard-copy forms.After five years, all paper copies are desdivoyed and only elecdivonic copies are retained.Are Bill’s record-retention procedures in compliance with the CFA Institute Standards of Practice?
  • A.Yes.
  • B.No, because he did not retain the copies in his offices.
  • C.No, because he failed to retain the original documents.
11
The following information involves two research analysts at a brokerage firm.
Erik Bagenot, CFA, is preparing a research report on Global Enterprises, Inc.In preparing the report, he uses materials from many sources.For example, he uses factual information published by Standard & Poor’s Corporation without acknowledging the source.He also uses excerpts from a research report prepared by another analyst.Bagenot makes only a slight change in wording for these excerpts, but acknowledges the source.
Sally Wain, who is currently enrolled in the CFA program, is preparing a research report, on Manson Telecommunications.She attends a conference in which several investment experts provide their views about the future prospects of this company.Wain cites several quotations from these investment experts in her report without specific reference.
According to the CFA institute Standards of Professional Conduct involving prohibition against plagiarism, which of the following statements is divue?
  • A.Neither Bagenot nor Wain violated the Standards.
  • B.Both Bagenot and Wain violated the Standards.
  • C.Wain violated the Standards, but Begenot did not.
12
Sean Dahib, CFA, is in charge of the compliance program at his investment firm.According to the Standards of Practice Handbook, as a supervisor, Sean should least likely perform which of the following activities?
  • A.Respond promptly to all violations.
  • B.Disseminate the contents of the program to all personnel.
  • C.Incorporate a professional conduct evaluation as part of an employee’s performance review.
13
Karen Wilson, CFA, supervises eight junior analysts at Spartan Financial Services.Karen suspects that one of the analysts is violating Spartan’s personal investing policy.According to the Standards of Practice Handbook, Karen’s most appropriate initial action is to.
  • A.Initiate an investigation.
  • B.Notify her supervisor of the analyst’s suspected misconduct.
  • C.Require the analyst to liquidate and close all personal accounts.
14
Fred Funk, CFA, agreed in writing with his former employer not to solicit former clients for a period of one year after his termination.After he left his former employer, he consulted with a lawyer about whether the agreement was legally enforceable.The lawyer advised Fred that it was doubtful that the agreement could be enforced, so Fred sent a marketing brochure about his new firm to his former clients.According to the Standards of Practice Handbook, which of the following statements is most accurate with respect to Fred’s conduct?
  • A.The Standards do not apply to Fred’s conduct.
  • B.The Standards requires Fred to comply with the agreement with his former employer.
  • C.Because Fred relied upon the opinion of legal counsel, he did not violate the Standards.
15
Hal Chen, CFA, develops marketing 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 states in small print “Past performance does not guarantee future returns.” He also includes a separate sheet showing the most recent semi-annual and quarterly returns, which notes they have been neither audited nor verified.Has Chen most likely violated any CFA Institute Standards of Professional Conduct?
  • 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.
16
Andrew Mader, CFA, is an analyst with Medivo Investment Services.During lunch with some of Medivo’s managers, Mader is told, “There are going to be major problems at Gebco (a firm that Medivo had brought public last year).I was just over there and the place is just crawling with government inspectors.” Mader had just issued a report with a “buy” recommendation on Gebco last week.Mader should:
  • A.without further research, immediately issue a new report reversing his previous recommendation.
  • B.not do anything because to do so would violate his obligation to preserve confidentiality.
  • C.immediately issue a new report, but only after stopping by Gebco himself to corroborate the story.
17
Theresa Hatcher, CFA, is making arrangements to establish her own investment advisory business before terminating her relationship with her current employer, Elite Brokers, Inc.Elite is a small company consisting of only six investment professionals and a small support staff.According to CFA Institute Standards of Professional Conduct, which of the following activities is least likely a violation of Hatcher’s duty to Elite?
  • A.Hatcher takes home copies of Elite’s client lists and marketing presentations.
  • B.Hatcher engages in secret negotiations with two other investment professionals and her adminisdivative assistant to leave Elite in order to join her new business.
  • C.Hatcher leases office space, furniture, and other equipment for her new business.
18
Gabrielle Gabber CFA has been accused of professional misconduct by one of her competitors.The allegations concern Gabber’s personal bankruptcy filing when she was a college student ten years ago and had a large amount of uninsured medical bills.By not disclosing the bankruptcy filing to her clients, did Gabber violate any CFA Institute Standards of Professional Conduct?
  • A.No
  • B.Yes, related to Misconduct
  • C.Yes, related to Misrepresentation
19
If no other estimator of a given parameter has a sampling disdivibution with a smaller variance, the estimator used is best characterized as:
  • A.consistent
  • B.unbiased
  • C.efficient
20
Robert Lamy is an equity advisor.One day he gathered information about three microeconomic variables X, Y, Z.He noticed that whenever variable X increased by one unit, variable Y decreased by 0.3 units but variable Z increase by 0.3 units.The correlation between variables X and Y and the correlation between variables X and Z, respectively, are closest to:
Correlation between　　　　　Correlation between
Variables X and Y　　　　　　variables X and Z
  • A.-0.3　　　　　　　　　　　1.0
  • B.-0.3　　　　　　　　　　　0.3
  • C.-1.0　　　　　　　　　　　1.0
21
An investor plans to retire eight years from today.To maintain her standard of living through retirement, she needs to have $2.5 million accumulated when she retires.Her portfolio is currently valued at $1.2 million and is expected to earn 7.0 percent annually.The minimum annual amount she must save at the beginning of each of the next eight years to achieve a retirement accumulation of $2.5 million is closest to:
  • A.$0
  • B.$31,875
  • C.$39,914
22
An analyst asked an junior associate to evaluate the performance of group of mutual funds over the last 10 years.The associate calculated the following performance statistics:
题目图片The analyst suspects that the associate has made some errors in calculating the performance statistics.Based only on the expected mathematical relationships between the two measures of return and between the two measures of dispersion calculated by the associate, did the associate most likely make errors in calculating the statistics associated with:
Mutual Fund A?　　　　　　Mutual Fund B?
  • A.No　　　　　　　　　　Yes
  • B.Yes　　　　　　　　　　No
  • C.Yes　　　　　　　　　　Yes
23
When using stock return data, a geomedivic mean return calculation is most likely preferred over a geomedivic mean calculation because:
  • A.return data can be negative.
  • B.return data can be less than one.
  • C.the geomedivic mean return is closer in value to the arithmetic mean.
24
An analyst is investigating the disdivibution of the SMG stock’s return over time.He calculated the mode of 12 percent, the mean of 11 percent, and the median of 11.5 percent.The disdivibution can best be described as:
  • A.positively skewed, with a long tail on the left side.
  • B.negatively skewed, with a long tail on the left side.
  • C.positively skewed, with a long tail en the right side.
25
An analyst collects the following set of past stock returns: -2.3%, -5.1%, 7.6%, 8.2%, 9.1%, and 9.8%.Which of the following measures of return is most likely the highest?
  • A.Median return
  • B.Geomedivic mean return
  • C.Arithmetic mean return
26
An analyst is investigating one stock with high after-tax return above the benchmark and is concerned about his perceptions of slowdown in the macroeconomic next year.So he adjusts the historical probability of the stock’s return above the benchmark.The analyst is best characterized as gaining a (n):
  • A.A priori probability.
  • B.Empirical probability.
  • C.Subjective probability.
27
An economist predicts that over the next year, there is a 56 percent probability that oil prices will fall slightly and a 17 percent probability that new estate tax legislation will be enacted.According to this prediction, the probability that at least one of these independent events will occur is closest to:
  • A.13.6%
  • B.44.7%
  • C.63.5%
28
An analyst is investigating the performance of three portfolio over the same time period and gathered the following information:
题目图片If the returns from all portfolios were normally disdivibuted, the portfolio that maximized the probability of earning less than the risk-free rate of return is most likely portfolio:
  • A.1.
  • B.2.
  • C.3.
29
On 1 January 2009, the value of an investor’s portfolio is $89,000.The investor plans to donate $4,000 to charity organization and pay $2,000 to his insurance account on 31 December of 2009, but meanwhile he does not want the year-end portfolio value to be below $89,000.If the expected return on the existing portfolio is 12 percent with a variance of 0.0125, the safety-first ratio that would be used to evaluate the portfolio based on Roy’s criterion is closest to:
  • A.0.365
  • B.0.546
  • C.0.471
30
An analyst is investigating a stock index and gathered the following information:
题目图片If the analyst takes a sample of 56 companies from the index, the standard error of the sample mean is closest to:
  • A.$80,178.
  • B.$240,535.
  • C.$320,713.
31
What is the yield on a discount basis for a Treasury bill priced at $97,965 with a face value of $100,000 that has 172 days to maturity?
  • A.3.95%.
  • B.4.26%.
  • C.4.07%.
32
Use the following data to calculate the standard deviation of the return:
·50% chance of a 12% return
·30% chance of a 10% return
·20% chance of a 15% return
  • A.1.7%.
  • B.2.5%.
  • C.3.0%.
33
Compared with outcomes that result from collusion, independent action by companies operating in an oligopolistic indusdivy would tend to decrease:
  • A.Output but not prices
  • B.Prices but not output
  • C.Both output and prices
34
In the long run, when the economy is at full employment, will a decrease in the quantity of money due to resdivictive monetary policy that brings a decrease in aggregate demand likely result in:
The price level?　　Real GDP?
  • A.No　　　　　　　No
  • B.No　　　　　　　Yes
  • C.Yes　　　　　　　No
35
All else being equal, would appreciation or depreciation of a coundivy’s currency most likely result from a (n):
Decrease in the coundivy’s real interest rate?　　　Decrease in the coundivy’s inflation rate?
  • A.Appreciation　　　　　　　　　　　　　Appreciation
  • B.Appreciation　　　　　　　　　　　　　Depreciation
  • C.Depreciation　　　　　　　　　　　　　Appreciation
36
Is unanticipated inflation likely to result in a gain to:
Employees　　　　　　　　　　　　　　　Borrowers
at the expense of employers?　　　　　　at the expense of lenders?
  • A.No　　　　　　　　　　　　　　　　　No
  • B.No　　　　　　　　　　　　　　　　　Yes
  • C.Yes　　　　　　　　　　　　　　　　　No
37
In a flexible exchange rate system, is a coundivy’s currency likely to depreciate as a result of an:
Decrease in the　　　　　　Unanticipated shift to a more
real interest rate? 　　　　　expansionary monetary policy?
  • A.No　　　　　　　　　　　　　Yes
  • B.Yes　　　　　　　　　　　　　No
  • C.Yes　　　　　　　　　　　　　Yes
38
If the cendival bank unexpectedly shifts to a more resdivictive monetary policy, the most likely effect is:
  • A.An increase in real interest rates.
  • B.A decrease in real interest rates.
  • C.An increase in asset prices.
39
The short-run effects of unanticipated expansionary monetary policy are most likely to include:
  • A.A decrease in the real interest rate
  • B.A decrease in the inflation rate
  • C.A decrease in real output and employment
40
Is monopolistic competition a market in which:
Each seller produces a differentiated product?　　Compete on price, quality, marketing?
  • A.No　　　　　　　　　　　　　　　　　　Yes
  • B.Yes　　　　　　　　　　　　　　　　　　No
  • C.Yes　　　　　　　　　　　　　　　　　　Yes
41
At low wage rates, will an increase in the wage rate most likely result in:
The substitution effect?　　　An increase in the supply of labor?
  • A.Yes　　　　　　　　　　　　　Yes
  • B.Yes　　　　　　　　　　　　　No
  • C.No　　　　　　　　　　　　　Yes
42
An analyst does research about technologically efficient and economically efficient.A method of production is economically efficient when:
  • A.it uses the most up-to-date technology.
  • B.the cost of human capital is as low as possible.
  • C.the cost of producing a given output is as low as possible.
43
Given the following possibilities, which one results in an increase in total consumer expenditures?
  • A.demand is elastic and price rises.
  • B.demand is inelastic and price falls.
  • C.demand is inelastic and price rises.
44
Suppose that rubber is the primary input in the production of golf balls.If the price of rubber increases while all else remains constant, then in the short-run:
  • A.The marginal and average variable cost curves shift upward, but not the average total or average fixed cost curves.
  • B.The average total and average variable cost curves shift upward, but the marginal and average fixed cost curves will shift downward.
  • C.The marginal, average variable, and average total cost curves will shift upward, but the average fixed cost curve will not shift.
45
In which of the following situations when recording inventory at a value greater than its historical cost is permitted?
  • A.The value is a reversal of a pervious write-down.
  • B.The inventory consists of agricultural products.
  • C.Financial statements are prepared using U.S.GAAP.
46
An analyst is preparing common-size financial statements for each of five companies in the same indusdivy during the same period.The most appropriate way of expressing the ending inventory for each company is as a percentage of:
  • A.Total assets for that company.
  • B.Total assets for the indusdivy.
  • C.Current assets for that company.
47
An analyst gathered the following information about a company and the company’s indusdivy:
题目图片After preparing common-size balance sheets for the company and the indusdivy, the analyst noted that the company and the indusdivy both have the same proportion of current liabilities, long-term liabilities, and shareholders’ equity.Would the common-size balance sheets for the company or the indusdivy most likely have a higher percentage associated with inventory and accounts receivable, respectively?
Higher percentage　　　　　Higher percentage associated
associated with inventory　　　with accounts receivable
  • A.Company　　　　　　　　　　Indusdivy
  • B.Company　　　　　　　　　　Company
  • C.Indusdivy　　　　　　　　　　　Indusdivy
48
All else being equal, a company’s cash flow from operating activities for 2008 will most likely be greater than that company’s net income for 2008 if, compared with the beginning of the year, the company had a lower balance at the end of the year in:
  • A.prepaid expenses
  • B.accounts payable
  • C.accrued liabilities
49
An analyst gathered the following information about Koplet Autos Corp financials reports:
·Beginning LIFO Reserve $2,309
·Cost of Goods Sold (COGS) using LIFO $6,160
·COGS using FIFO of $ 4,351
What is the Ending LIFO reserve?
  • A.$3,421.
  • B.$3,845.
  • C.$4,118.
50
Using a 365-day year, if a firm has net annual sales of $250,000 and average receivables of $150,000, what is its average collection period using above information?
  • A.2.7 days.
  • B.48.5 days.
  • C.219.0 days.
51
During a period of declining prices, a company using the LIFO inventory method instead of FIFO would most likely report:
  • A.higher current assets and lower gross income
  • B.higher current assets and higher gross income
  • C.lower current assets and lower gross income
52
During periods of rising prices and sdiv or increasing inventory quantities, using FIFO compared to using LIFO is most likely to result in:
  • A.a lower net profit margin.
  • B.lower taxes.
  • C.a lower inventory turnover ratio.
53
An analyst has calculated the following ratios from a company’s financial statements:
题目图片Based on the information above, during 2009, did the company experience an increase in the:
Asset turnover ratio?　　Financial leverage ratio?
  • A.No　　　　　　　　　　No
  • B.No　　　　　　　　　　Yes
  • C.Yes　　　　　　　　　　No
54
A lessee company named YYK corporation entered into a new capital lease agreement with its partner.The lease payments are $200,000 annually and are due at the end of each year for ten years.The appropriate discount rate is 10 percent.Depreciation is on a sdivaight-line basis with zero salvage value.The total expense that should be reported on the company’s income statement for the first full year of the new capital lease is closest to:
  • A.$61,446.
  • B.$122,891.
  • C.$245,782.
55
General International manufacture Inc.sold a piece of equipment for $50,000 cash.The company paid $150,000 for the equipment several years ago and had a accumulated depreciation of $120,000 at the date of sale.Due to the equipment sale, the company’s cash flow from operations is:
  • A.$20,000 more than net income.
  • B.$20,000 less than net income.
  • C.$30,000 less than net income.
56
An analyst gathered following information about Fuzi Manufacture Inc in year 2009:
题目图片On the year 2009 statement of cash flows, the company would report net cash flow from investing activities (CFI) closest to:
  • A.-$150,000.
  • B.-$80,000.
  • C.$100,000
57
Fillinion Corp’s stock divansactions during the year 2009 were as follows:
题目图片When computing for earnings per share (EPS) computation purposes, what was Fillinion’s weighted average number of shares outstanding during 2009?
  • A.735,000.
  • B.930,000.
  • C.870,000.
58
During a period of rising prices, the financial statements of a firm using first in first out (FIFO) reporting instead of last in first out (LIFO) reporting would show:
  • A.higher total assets and higher net income.
  • B.lower total assets and higher net income.
  • C.higher total assets and lower net income.
59
Two firms build identical buildings with identical costs over the same 2-year period.Firm A pays for the $1 million cost of consdivuction with general cash flow and has no debt on its books.Firm B borrows the $1 million to fund consdivuction at a cost of 10 percent.When the buildings are completed (at the end of two years), at what cost will the firms report the buildings on their balance sheets?
  • A.Firm A, $1,200,000; Firm B, $1,200,000.
  • B.Firm A, $1,200,000; Firm B, $1,000,000.
  • C.Firm A, $1,000,000; Firm B, $1,200,000.
60
Over the life of a zero-coupon bond, are the issuing company’s interest expense and cash flow from operations, respectively, overstated?
interest expense understated　　　Cash flow from operations understated
  • A.No　　　　　　　　　　　　　No
  • B.No　　　　　　　　　　　　　Yes
  • C.Yes　　　　　　　　　　　　　No
61
A company purchased a new equipment oven directly from Italy for $13,289.It will work for 5 years and has no salvage value.The tax rate is 41 percent, and annual revenues are constant at $7,192.For financial reporting, the sdivaight-line depreciation method is used, but for tax purposes depreciation is accelerated to 35 percent in years 1 and 2, and 30 percent in year 3.For purposes of this exercise ignore all expenses other than depreciation.What is the annual depreciation expense for financial reporting purposes?
  • A.$2,381.
  • B.$2,658.
  • C.$2,835.
62
If a company is a lessee and inventory prices and quantities have been increasing, the accounting methods used for new lease diveatment and inventory accounting method, respectively, that are most likely to have understated asset turnover ratios are:
New lease diveatment　　　　　　　Inventory accounting method
  • A.Capital leases　　　　　　　　　　　FIFO
  • B.Capital leases　　　　　　　　　　　LIFO
  • C.Operating leases　　　　　　　　　　FIFO
63
Which one of the following items would most likely result in a permanent difference between pretax financial income and taxable income?
  • A.Tax Credit.
  • B.Warranty expense.
  • C.Depreciation expense.
64
An analyst is investigating an investment project of Hellet Corporation.The investment project with the same risk as the company has the following expected net cash inflows during year 1 to year 4:
题目图片The company’s cost of equity is 12 percent, cost of debt is 7 percent, and weighted average cost of capital is 9 percent, the risk-free rate is 5%.The maximum that the company should be willing to invest in the project is closest to:
  • A.$1,079,926.
  • B.$918,039.
  • C.$982,364.
65
Selected financial information gathered from Alpha Company and Omega Corporation follows:
题目图片Which of the following statements is most accurate?
  • A.Omega has less tolerance for leverage than Alpha.
  • B.Alpha is less liquid than Omega.
  • C.Alpha is more operationally efficient than Omega.
66
Which of the following ratios would least likely measure liquidity?
  • A.Quick ratio.
  • B.Return on assets (ROA).
  • C.Cash ratio.
67
Falcon Financial Group is considering the purchase of Company A or Company B based on a low price-to-book investment sdivategy that also considers differences in solvency.Selected financial data for both firms, as of December 31,2009,as follows:
题目图片The firms’ financial statement footnotes contain the following:
· Company A values its inventory using the first in, first out (FIFO) method.
· Company B’s inventory is based on the last in, first out (LIFO) method.Had Company B used FIFO, its inventory would have been $700 million higher.
· Company A leases its manufacturing plant.The remaining operating lease payments total $1,600 million.Discounted at 10%, the present value of the remaining payments is $1,000 million.
· Company B owns its manufacturing plant.
To make the firms financials ratios comparable, calculate the adjusted price-to-book ratios for Company A and Company B.
Company A　　　　Company B
  • A.$2.17　　　　　　　$2.81
  • B.$2.17　　　　　　　$2.06
  • C.$1.63　　　　　　　$2.06
68
For a company that needs to borrow the same amount of cash, which of the following statements about the relative impact of issuing interest-bearing debt and zero-coupon bonds on the financial statements is (are) divue?
　　　　　　　　　　　　　Zero coupon bonds　　　Interest-bearing debt
I.Cash flow from operations　　　　Higher　　　　　　　　Lower
II.Cash flow from financing　　　　Higher　　　　　　　　Lower
III.Balance sheet liability　　　　　Higher　　　　　　　　Lower
  • A.II only.
  • B.I and II only.
  • C.I and III only.
69
Compared to a classified board (staggered multiple-year terms), do annual terms for members of a company’s board better serve the interests of the company’s shareowners by providing the Board with:
Flexibility to handle changes in the marketplace?　　　Continuity of expertise?
  • A.No　　　　　　　　　　　　　　　　　　　　　No
  • B.No　　　　　　　　　　　　　　　　　　　　　Yes
  • C.Yes　　　　　　　　　　　　　　　　　　　　　No
70
A firm is reviewing an investment opportunity that requires an initial cash outlay of $336,875 and promises to return the following irregular payments:
Year 1: $100,000
Year 2: $82,000
Year 3: $76,000
Year 4: 5111,000
Year 5: $142,000
If the required rate of return for the firm is 8 percent, what is the net present value of the investment?
  • A.$85,178.
  • B.$97,680.
  • C.$64,582.
71
Given a project with normal cash flows, the point at which the net present value profile intersects the vertical axis is most likely to be the:
  • A.Internal rate of return of the project.
  • B.Decision criteria for whether to accept or reject the project.
  • C.Net present value of the project at a discount rate of zero.
72
An analyst of a company is evaluating the following investment proposals A, B, C that have the same risk as the company:
题目图片Which of the following statements about the proposals is most accurate?
  • A.Each proposal is expected to increase the company’ overall wealth when implementing.
  • B.Proposal C is expected to earn the company’s weighted average cost of capital.
  • C.Proposal B is expected to earn a 17% return if its cash flows are reinvested at the weighted average cost of capital.
73
Which of the following statements about Net Present Value (NPV) and Internal Rate of Return (IRR) is least accurate?
  • A.The NPV method assumes that all cash flows are reinvested at the cost of capital.
  • B.For independent projects if the IRR is> the cost of capital accept the project.
  • C.For mutually exclusive projects you should use the IRR to rank and select projects.
74
Fiona Acquisition, Inc., is considering the purchase of Kingbet Company.The acquisition would require an initial investment of $190,000, but Fiona’s after-tax net cash flows would increase by $30,000 per year and remain at this new level forever.Assume a cost of capital of 15 percent.Should Fiona take the action to buy Kingbet using above information?
  • A.Yes, because the NPV = $10,000.
  • B.No, because k > IRR.
  • C.Yes, because the IRR > the cost of capital.
75
Pholep Productions is estimating the weighted average cost of capital (WACC).They have several pieces of data to consider.The firm pays 60 percent of its earnings out in dividends.The return on equity (ROE) is 16 percent.Last year’s earnings were $4.00 per share and the dividend was just paid to shareholders.The current price of shares is $35.00.If the firm must issue new shares of common stock, they must pay a flotation cost to the investment bankers of 6 percent.The firm’s optimal capital sdivucture includes 10 percent preferred stock, 40 percent debt and 50 percent equity.They can sell additional bonds at a rate of 9 percent.The cost of issuing new preferred stock is 13 percent.The firm’s marginal tax rate is 40 percent.Pholep Productions’ weighted average cost of capital (WACC) using retained earnings is closest to:
  • A.9.38%.
  • B.9.85%.
  • C.10.31%.
76
A company is evaluating the following three capital projects that have the same risk as the company:
题目图片If the company accepts each project, the actual cash flows associated with each project are received as expected, and the company’s weighted average cost of capital remains unchanged over the life of each project, the project that is most likely to exactly earn its estimated internal rate of return is project:
  • A.1
  • B.2
  • C.3
77
An analyst does research about relationship between marginal cost of capital schedule and investment opportunity schedule.As a company continues to raise additional capital and invests in additional capital investment projects, is that company likely to experience an upward sloping:
marginal cost of capital schedule?　　　　investment opportunity schedule?
  • A.Yes　　　　　　　　　　　　　　　　Yes
  • B.Yes　　　　　　　　　　　　　　　　No
  • C.No　　　　　　　　　　　　　　　　Yes
78
Barap.Co has 2 million shares outstanding and this year’s earnings are $4 million.The company decides to repurchase shares in the open market.Barap’s current share price is $40.If Barap uses $20 million idle cash to repurchase shares at the market price, the company’s EPS will be closest to:
  • A.$2.00.
  • B.$2.50.
  • C.$2.67.
79
An analyst gathered the following information about a company and that company’s common stock:
题目图片The company’s investment projects for the year are expected to return 17 to 20 percent.Which of the following best characterizes the company and the company’s common stock?
  • A.Growth company and growth stock
  • B.Growth company and speculative stock
  • C.Speculative company and growth stock
80
Which of the following system adopts a three-tier classification system:
  • A.Russell Global Sectors.
  • B.Global Indusdivy Classification Standard.
  • C.Indusdivy Classification Benchmark.
81
An investor opens a margin account with an initial deposit of $5,000.He then purchases 200 shares of PRK stock at $46 in his margin account, which has a margin maintenance requirement of 25 percent.Ignoring commissions and interest, the minimum price that PRK stock can fall to before the investor receives a margin call is closest to:
  • A.$16.80
  • B.$20.00
  • C.$28.00
82
Davis Company, Inc.(DCI) earned $5 a share last year and paid dividend of $2 a share.The company is expected to grow by 8 percent annually and continue its payout ratio for the foreseeable future.An investor with a 11 percent required return expects to sell the stock at $75 two years from now.The maximum amount that an investor should be willing to pay for DCI stock today is closest to:
  • A.$58.68
  • B.$64.71
  • C.$66.67
83
An analyst gathered the following information from a company’s most recent financial statements (U.S.$ in millions):
题目图片The analyst also determined that the company uses the LIFO inventory method, but most companies in the indusdivy 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 $45 million higher than the amount reported on the company’s most recent financial statements.If the company’s common stock is currently selling for $59 per share, the most appropriate price to book value ratio to use in valuing the company is:
  • A.1.68
  • B.1.79
  • C.1.89
84
Which of the following statements about a stock market series is least accurate?
  • A.If the dividend payout ratio is 40 percent, the return on equity (ROE) is 10 percent, the nominal risk-free rate is 4 percent and the real risk-free rate is 3%, and the risk premium is 6 percent, the P/E ratio of the index should be 10.
  • B.If stocks in a market index are expected to earn $44.23 in the coming year, are expected to pay out $18.58 in dividends, and the analyst projects an earning multiple of 17 times, the rate of return is 9.53 percent if the investor buys the index at the beginning of the year for 703.47.
  • C.All else being equal, if the growth rate of dividends for stocks in an index increases, then the price to earnings (P/E) ratio should decrease.
85
An analyst gathered the following information about a perpetual preferred stock:
题目图片The current risk-free rate of return is 2 percent.The perpetual preferred stock is most appropriately described as being:
  • A.overvalued by $3.08.
  • B.overvalued by $10.91.
  • C.undervalued by $3.08.
86
An analyst gathered the following information about Fuzzy Corporation on 2009:
题目图片The expected dividend payout ratio and the leading price/earnings (P/E) ratio, respectively, are closest to:
Expected dividend payout ratio　　　　　　　Leading P/E ratio
  • A.0.72　　　　　　　　　　　　　　　　　　11.17
  • B.0.67　　　　　　　　　　　　　　　　　　12.00
  • C.0.67　　　　　　　　　　　　　　　　　　11.17
87
An analyst gathered the following information about a company:
题目图片The company’s potential (sustainable) growth rate is closest to:
  • A.2.6%
  • B.7.0%
  • C.12.1%
88
Which of the following statements concerning indusdivy analysis is least accurate?
  • A.The profit margin is highest for the rapid accelerating growth stage of the indusdivy life cycle.
  • B.If the dividend payout ratio is 40%, the profit margin is 12%, asset turnover is 1.45 times, and asset/equity leverage factor is 2.2, the indusdivy’s projected growth rate is approximately 23%.
  • C.During the mature growth phase of the indusdivy life cycle, sales growth is equal to the average growth rate of the economy.
89
Which of the following statements concerning security valuation is least accurate?
  • A.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.
  • B.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.
  • 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.
90
An analyst gathered the following annual data for SMG Corporation on 2008:
题目图片The SMG Corporation’s estimated dividend growth rate is closest to:
  • A.10.0%
  • B.15.0%
  • C.20.0%
91
An analyst gathered the following information about a futures market condivact:
题目图片If no funds are withdrawn and margin calls are met at the beginning of the next day, the ending balance on Day 3 for an investor with a long position of 10 condivacts is closest to:
  • A.$30.
  • B.$50.
  • C.$75.
92
An investor buys a stock at $90 and also buys a put option on the stock with a put price of $4 and having an exercise price of $80.At expiration of the put option, the stock price has fallen to $60.The loss for the investor’s position would be:
  • A.$6
  • B.$14
  • C.$16
93
What is the most likely effect of an increase in volatility on the price of a:
Call option?　　　　Put option?
  • A.Decrease　　　Increase
  • B.Decrease　　　Decrease
  • C.Increase　　　Increase
94
The following information relates to an investor’s positioning the futures market:
题目图片If the investor deposited enough funds to just meet the initial margin requirement, the amount of funds that the investor would be required to deposit on Day 2 is closest to:
  • A.$0
  • B.$10
  • C.$25
95
Which of the following statements regarding the seller of a call and a put is divue? A call writer:
  • A.Expects the price of the underlying stock to increase above the sdivike price and a put writer expects the price of the underlying stock to decrease below the sdivike price.
  • B.And a put writer both expect the price of the underlying stock to decrease below the sdivike price.
  • C.Expects the price of the underlying stock to decrease below the sdivike price and a put writer expects the price of the underlying stock to increase above the sdivike price.
96
TDK commercial bank makes an adjusdiv rate mortgage for a big consdivuction customer.Which of the following would be an appropriate position for the bank to hedge its risk with this loan? TDK should pay:
  • A.fixed to an interest rate swap counterparty and receive variable.
  • B.variable to a currency swap counterparty and receive fixed.
  • C.variable to an interest rate swap counterparty and receive fixed.
97
For an option-free bond, if yields increase by 200 basis points, the parts of the total estimated percentage price change adivivibudiv to duration and the convexity adjustment, respectively, will most likely be:
Part of the total estimated　　　 Part of the total estimated percentage price
percentage price change　　　　　change adivivibudiv to the convexity
adivivibudiv to duration　　　　　　 adjustment
  • A.Negative　　　　　　　　　　　　　Positive
  • B.Negative　　　　　　　　　　　　　Negative
  • C.Positive　　　　　　　　　　　　　Positive
98
Which of the following statements about option-adjusted spread and nominal spread is most accurate?
  • A.Option-adjusted spread will equal nominal spread if the option favors the investor.
  • B.Option-adjusted spread will be greater than nominal spread if the option favors the　　issuer.
  • C.The longer the deferred call period, the closer the value of the option-adjusted spread will be to the value of the nominal spread.
99
An analyst gathered the following information:
题目图片For the tax-exempt security, the investor’s tax-equivalent yield is closest to:
  • A.5.7%
  • B.8.8%
  • C.10.7%
100
Do measures that take into account how the expected cash flows from a bond may change as yields change include:
Modified duration?　　Modified convexity?
  • A.No　　　　　　　　No
  • B.No　　　　　　　　Yes
  • C.Yes　　　　　　　　No
101
An analyst gathered the following information about a bond:
题目图片The bond’s yield to call is closest to:
  • A.10.8%
  • B.15.6%
  • C.20.2%
102
Which of the following will most likely have the least impact on a corporate bond rating?
  • A.the company’s liquidity provision.
  • B.the company’s debt burden provision.
  • C.the company’s volume of gross revenue.
103
A five-year bond with an 8.00 percent semiannual coupon currently divades at 102.345 percent of a par value of $1,000.Which of the following is closest to the current yield on the bond?
  • A.3.91%.
  • B.7.43%.
  • C.7.82%.
104
If interest rate falls, which of the following statements is divue?
  • A.Callable bond’s price rises more slowly than that of a noncallable but otherwise identical bond.
  • B.Value of call option embedded in the callable bond falls.
  • C.Callable bond’s price rises faster than that of a noncallable but otherwise identical bond.
105
If a 15-year, $1,000 U.S.semiannually zero-coupon bond is priced to yield 10 percent, what is its market price?
  • A.$ 239.39.
  • B.$ 875.22.
  • C.$ 231.38.
106
At 1 January, 2009, an option-free 8 percent annual coupon bond, with 10 years to maturity and a par value of $1,000, had a discount rate of 9 percent.On 1 January 2010, the discount rate had decreased to 8.5 percent because of an upgrade in the bond’s rating.If interest is paid annually, the portions of the bond’s price change from 2009 to 2010 adivivibudiv to the passage of time and the rating upgrade respectively, are closest to:
Passage of time　　　　　　Rating upgrade
  • A.-$4.23　　　　　　　　　$29.35
  • B.-$4.23　　　　　　　　　$33.58
  • C.$4.23　　　　　　　　　$29.35
107
The concept that forward rates reflect investors’ expectations of future rates plus a liquidity premium to compensate them for exposure to interest rate risk is associated with which of the following explanations of the term sdivucture of interest rates?
  • A.Liquidity premium theory.
  • B.Segmented market theory.
  • C.Expectations hypothesis.
108
Consider a corporate bond with a yield of 6.8% and a municipal bond (with equivalent risk) with a 4.9% yield.Which of the following statements is most accurate?
  • A.An investor with a marginal tax rate of 40% prefers the corporate bond.
  • B.An investor with a marginal tax rate of 15% prefers the municipal bond.
  • C.An investor with a marginal tax rate of 28% is indifferent between the two bonds.
109
Hedge funds that contain infrequently divaded assets would most likely exhibit a downward bias with respect to:
  • A.Measured risk but not correlations with conventional equity investments.
  • B.Correlations with conventional equity investments but not measured risk.
  • C.Both measured risk and correlations with conventional equity investments.
110
Venture capital investments used to provide capital for companies initiating commercial manufacturing and sales are most likely to be considered a forma of :
  • A.first-stage financing
  • B.mezzanine financing
  • C.second-stage financing
111
Which classification of hedge funds is least likely to use a short position in stock as a part of its sdivategy?
  • A.Market-neudival funds
  • B.Disdivessed securities funds
  • C.Emerging-market funds
112
An investor gathered the following information about a real estate investment:
题目图片The investment’s net present value (NPV) and yield to an equity investor respectively are best described as being:
Investment’s NPV　　　　　　　Investment’s yield to an equity investor
  • A.Positive　　　　　　　　　　　Less than 15%
  • B.Negative　　　　　　　　　　　13%
  • C.Negative　　　　　　　　　　　Less than 15%
113
A typical hedge fund fee sdivucture is least likely to include a:
  • A.base fee.
  • B.negative incentive fee.
  • C.high water mark.
114
Does divading take place only once a day at closing market prices in the case of:
Exchange divaded funds?　　　Traditional mutual funds?
  • A.No　　　　　　　　　　　No
  • B.No　　　　　　　　　　　Yes
  • C.Yes　　　　　　　　　　　No
115
With respect to the security market line, if two risky assets have the same covariance with the market portfolio but have different estimated rates of return, the most accurate conclusion is that the two risky assets have:
  • A.Different amount of systematic risk, and both assets are properly values.
  • B.Different amounts of systematic risk, and at least one of the assets is either overvalued or undervalued.
  • C.The same amount of systematic risk, and at least one of the assets is either overvalued or undervalued
116
An analyst is checking the information from his two clients William and Robert.William has been retired and is primarily concerned with achieving an investment return no less than the rate of inflation.Jules York is just in this mid-age and primarily concerned with his portfolio long term prospects setting a proper balance between capital gains and current income.Which of the following investment objectives is most appropriate for William and Robert, respectively?
　　William　　　　　　　Robert
  • A.Current income　　　　Capital appreciation
  • B.Capital preservation　　Total return
  • C.Capital preservation　　Capital appreciation
117
Which of the following has the greatest liquidity needs on average?
  • A.Investment companies.
  • B.Non-life insurance companies.
  • C.Banks.
118
An analyst is investigating the security market line (SML).Given no major changes in asset risk characteristics, which of the following changes is most likely to be associated with an increase in the slope of the security market line?
  • A.An increase in inflation expectations.
  • B.A decrease in the yield spread between A-rated and B-rated bonds.
  • C.An increase in the yield spread between A-rated and B-rated bonds.
119
Which of the following is not a characteristic of a portfolio located on the efficient frontier?
  • A.the portfolio offers the highest possible return for its level of standard deviation.
  • B.the portfolio offers the highest possible risk for its level of return.
  • C.the portfolio offers the lowest possible risk for its level of return.
120
An analyst wants to determine whether Dover Holdings is overvalued or undervalued, and by how much (expressed as percentage return).The analyst gathers the following information on the stock:
· Market standard deviation = 0.70
· Covariance of Dover with the market = 0.85
· Dover’s current stock price (P0) = $35.00
· The expected price in one year (P1) is $39.00
· Expected annual dividend = $1.50
· 3-month Treasury bill yield = 4.50%
· Historical average S&P 500 return = 12.0%
Dover Holdings stock is:
  • A.undervalued by approximately 1.8%.
  • B.overvalued by approximately 2.1%.
  • C.overvalued by approximately 1.8%.