A. a 30-year bond with a 10% coupon
following has the longest duration?
1. All other things equal (YTM = 10%), which of the
A. A 30-year bond with a 10% coupon
B. A 20-year bond with a 9% coupon
C. A 20-year bond with a 7% coupon
D. A 10-year zero-coupon
Financial assets represent
A. over 60%
B. over 90%
C. under 10%
D. about 30%
Real assets in the economy include all but which one of the following?
C. Consumer durables
D. Common stock
Net worth represents
D. may or may not have outperformed the S&P 500 on a risk-adjusted basis
1. A mutual
fund with a beta of 1.1 has outperformed the S&P 500 over the last 20 years. We know that this
mutual fund manager _.
A. must have had superior stock selection ability.
A. book value 1. The accounting measure of a firm's equity value generated by applying
accounting principles to asset and liability acquisitions is called _.
A. book value
B. market value
C. liquidation value
D. Tobin's q
A. Start-up phase
2. The price-to
D. stock prices follow recurring patterns
1. Which of the following beliefs would not
preclude charting as a method of portfolio management?
A. The market is strong-form efficient.
B. The market is semistrong-form efficient.
C. The market is weak-form eff
Which of the following assets is most liquid?
Plant and equipment
Cost of goods sold refers to _.
direct costs attributable to producing the product sold by the firm
salaries, advertising, and selling expenses
A. Cash equivalents
1. Which of the following assets is most liquid?
A. Cash equivalents
D. Plant and equipment
A. direct costs attributable to producing the product sold by the firm
refers to _.
2. Cost of goods sold
A. stated or flat price in a quote sheet plus accrued interest1. The invoice price of a bond is the
A. stated or flat price in a quote sheet plus accrued interest
B. stated or flat price in a quote sheet minus accrued interest
C. bid price
D. average o
c. closer to 1 1. An adjusted beta will be _ than the unadjusted beta.
C. closer to 1
D. closer to 0
b. II only
2. Fama and French claim that after controlling for firm size and the ratio of the
firm's book value to market value, beta i
D. 11% 1. You put up $50 at the beginning of the year for an investment. The value of the
investment grows 4% and you earn a dividend of $3.50. Your HPR was _.
B. arithmetic average 2. The _ measure of returns ignores compoundin
D. All of these options1. Risk that can be eliminated through diversification is called _ risk.
D. all of these options
A. Asset allocation; stock selection
2. The _ decision should take precedence o
A top-down analysis of a firm's prospects starts with an analysis of the _.
firm's position in its industry
U.S. economy or even the global economy
specific firm under consideration
The yield curve spread between the 10-year T-bond yield and the
The accounting measure of a firm's equity value generated by applying accounting principles
to asset and liability acquisitions is called _.
The price-to-sales ratio is probably most useful for firms in