公司理财试题10

公司理财试题10

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Unformatted text preview: Chapter 10: Some Lessons from Capital Market History CHAPTER 10 Some Lessons from Capital Market History I. DEFINITIONS Topic: RISK PREMIUM 1. The excess return required on a risky asset over that earned on a risk-free asset is called (a): A) Risk premium. B) Return premium. C) Excess return. D) Average return. E) Variance. Answer: A Topic: VARIANCE 2. The average squared difference between the actual return and the average return is the: A) Average return. B) Variance. C) Standard deviation. D) Risk premium. E) Excess return. Answer: B Topic: STANDARD DEVIATION 3. The standard deviation for a set of stock returns can be calculated as: A) The positive square root of the average return. B) The average squared difference between the actual return and the average return. C) The positive square root of the variance. D) The average return divided by N minus one, where N is the number of returns. E) The variance squared. Answer: C Topic: EFFICIENT CAPITAL MARKETS 4. An efficient capital market is one in which: A) Brokerage commissions are zero. B) Taxes are irrelevant. C) Securities always offer a positive rate of return to investors. D) Security prices are guaranteed (by the Securities and Exchange Commission) to be fair. E) Security prices reflect available information. Answer: E Ross/Westerfield/Jordan, Essentials of Corporate Finance, 4/e 240 Chapter 10: Some Lessons from Capital Market History Topic: EFFICIENT MARKETS HYPOTHESIS 5. The notion that actual capital markets, such as the NYSE, are fairly priced is called the: A) Efficient Markets Hypothesis (EMH). B) Law of One Price. C) Open Markets Theorem. D) Laissez-Faire Axiom. E) Monopoly Pricing Theorem. Answer: A Topic: STRONG FORM EFFICIENCY 6. The hypothesis that market prices reflect all available, public and private, information is called efficiency in the: A) Open form. B) Strong form. C) Semi-strong form. D) Weak form. E) Stable form. Answer: B Topic: SEMI-STRONG FORM EFFICIENCY 7. The hypothesis that market prices reflect all publicly-available information is called efficiency in the: A) Open form. B) Strong form. C) Semi-strong form. D) Weak form. E) Stable form. Answer: C Topic: WEAK FORM EFFICIENCY 8. The hypothesis that market prices reflect all historical information is called efficiency in the: A) Open form. B) Strong form. C) Semi-strong form. D) Weak form. E) Stable form. Answer: D Ross/Westerfield/Jordan, Essentials of Corporate Finance, 4/e 241 Chapter 10: Some Lessons from Capital Market History II CONCEPTS Topic: INCOME COMPONENT OF RETURN 9. An asset's return on investment has two components, one of which is ____________, which reflects the cash you receive directly while you own the investment....
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This note was uploaded on 06/13/2011 for the course ACCOUNTING 1204 taught by Professor Chang during the Spring '11 term at Nanjing University.

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公司理财试题10

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