Discounted Cash Flow Applications
Test ID: 7658688
Question #1 of 72
Question ID: 412839
In order to calculate the net present value (NPV) of a project, an analyst would least likely need to know the:
A) internal rate of return (IRR) of the project.
B)
Cost of Capital
Test ID: 7696349
Question #1 of 86
Question ID: 467819
The 6% semiannual coupon, 7-year notes of Woodbine Transportation, Inc. trade for a price of 94.54. What is the company's
after-tax cost of debt capital if its marginal tax rate is 30%
Hypothesis Testing
Test ID: 7658784
Question #1 of 88
Question ID: 413409
Which of the following statements about parametric and nonparametric tests is least accurate?
A) The test of the difference in means is used when you are comparing means from two
i
Capital Budgeting
Test ID: 7694293
Question #1 of 57
Question ID: 414743
Polington Aircraft Co. just announced a sale of 30 aircraft to Cuba, a project with a net present value of $10 million. Investors did
not anticipate the sale because government appro
Statistical Concepts and Market Returns
Test ID: 7658721
Question #1 of 122
Question ID: 412942
For the last four years, the returns for XYZ Corporation's stock have been 10.4%, 8.1%, 3.2%, and 15.0%. The equivalent
compound annual rate is:
A) 9.2%.
B)
The Time Value of Money
Test ID: 7658669
Question #1 of 87
Question ID: 412807
You borrow $15,000 to buy a car. The loan is to be paid off in monthly payments over 5 years at 12% annual interest. What is
the amount of each payment?
A) $456.
B) $546.
C)
Sampling and Estimation
Test ID: 7658769
Question #1 of 87
Question ID: 413309
Which of the following is the best method to avoid data mining bias when testing a profitable trading strategy?
A) Increase the sample size to at least 30 observations per yea
Probability Concepts
Test ID: 7658734
Question #1 of 117
Question ID: 413030
An empirical probability is one that is:
A) derived from analyzing past data.
B) supported by formal reasoning.
C) determined by mathematical principles.
Explanation
An empiri
Working Capital Management and Corporate Governance
Test ID: 7696566
Question #1 of 78
Question ID: 434352
Liquidating short-term assets and renegotiating debt agreements are best described as a firm's:
A) pulls and drags on liquidity.
B) primary source
Measures of Leverage & Dividends and Share Repurchase
Test ID: 7696476
Question #1 of 67
Question ID: 414840
Which of the following is a key determinant of operating leverage?
A) The competitive nature of the business.
B) Level and cost of debt.
C)
Common Probability Distributions
Test ID: 7658750
Question #1 of 104
Question ID: 413226
Assume an investor purchases a stock for $50. One year later, the stock is worth $60. After one more year, the stock price has
fallen to the original price of $50. Ca
function y=product_copula_VaR(mu1,mu2,sigma1,sigma2,cl)
% Derives VaR using bivariate product copula with specified inputs, for normal
% marginals.
%
% Inputs:
% mu1: Mean of P/L on first position.
% mu2: Mean of P/L on second position.
% sigma1: Std of
function y=normalvarplot3D(varargin)
% NORMALVARPLOT3D Plots normal VaR in 3D against confidence level and holding period
%
% Function plots the VaR of a portfolio assuming P/L is normally distributed,
% for specified ranges of confidence level and holdi
function y=normalvarplot2D_hp(varargin)
% NORMALVARPLOT2D_HP Plots normal VaR against holding period
%
% Function plots the VaR of a portfolio against holding period, assuming P/L is normally distributed,
% for specified confidence level.
%
% If there ar
function y=normalvar(varargin)
% NORMALVAR VaR for normally distributed P/L
%
% Function estimates the VaR of a portfolio assuming P/L is normally distributed,
% for specified confidence level and holding period.
%
% If there are three arguments, the fir
function y=lognormalvarplot3D(varargin)
% LOGNORMALVARPLOT3D Plots lognormal VaR in 3D against confidence level
% and holding period
%
% If there are four arguments, the first argument is a vector of daily
% geometric return data, the second is the size
function y=lognormalvarfigure(varargin)
% LOGNORMALVARFIGURE Figure of lognormal VaR and pdf against L/P
%
% Function gives figure showing the VaR and pdf against L/P of a portfolio
% assuming geometric returns are normally distributed, for specified
%
function y=cornishfishervar(mu, sigma, skew, kurtosis,cl)
% CORNISHFISHERVAR Computes VaR using the Cornish-Fisher adjustment for non-normality
%
% Function estimates the VaR for near-normal P/L using the Cornish-Fisher adjustment for
% non-normality, fo
function y=hsvarplot2D_cl(PandL_data,cl)
% HSVARPLOT2D_CL Plots historical simulation VaR against confidence level
%
% Function plots the historical simulation VaR of a portfolio against confidence level,
% for specified range of confidence level and hol
function y=hsvarfigure(PandL_data,cl)
% HSVARFIGURE Figure of historical simulation VaR and histogram of L/P
%
% Function gives figure showing the historical simulation VaR and histogram of L/P
% for specified confidence level and holding period implied
function y=hsvar(PandL_data,cl)
% HSVAR VaR for specified confidence level(s)
%
% Function estimates the VaR of a portfolio using the historical simulation approach,
% for specified range of confidence levels and holding period implied by data frequency.
function y=hses(PandL_data,cl)
% HSES_SIMPLE ES for specified confidence level
%
% Function estimates the ES of a portfolio using the historical simulation approach,
% for specified confidence level and holding period implied by data frequency.
%
% The
Chapter 24 - Portfolio Performance Evaluation
Chapter 24 Portfolio Performance Evaluation
Multiple Choice Questions 1. Trading activity by mutual funds just prior to quarterly reporting dates is known as A. insider trading. B. program trading. C. passive
Chapter 19 - Financial Statement Analysis
Chapter 19
Financial Statement Analysis
Multiple Choice Questions
1. A firm has a higher quick (or acid test) ratio than the industry average, which implies.
A. the firm has a higher P/E ratio than other firms in
Chapter 21 - Option Valuation
Chapter 21 Option Valuation
Multiple Choice Questions 1. Before expiration, the time value of an in the money call option is always A. equal to zero. B. positive. C. negative. D. equal to the stock price minus the exercise pr
Chapter 27 - The Theory of Active Portfolio Management
Chapter 27 The Theory of Active Portfolio Management
Multiple Choice Questions 1. In the Treynor-Black model A. portfolio weight are sensitive to large alpha values which can lead to infeasible long o
Chapter 28 - Investment Policy and the Framework of the CFA Institute
Chapter 28 Investment Policy and the Framework of the CFA Institute
Multiple Choice Questions 1. The CFA Institute divides the process of portfolio management into 3 main elements, whic
Chapter 25 - International Diversification
Chapter 25 International Diversification
Multiple Choice Questions 1. Shares of several foreign firms are traded in the U.S. markets in the form of A. ADRs B. ECUs C. single-country funds D. all of the above E. n
Chapter 26 - Hedge Funds
Chapter 26 Hedge Funds
Multiple Choice Questions 1. _ are the dominant form of investing in securities markets for most individuals and _ have enjoyed far greater growth rate in the last decade. A. Hedge funds; hedge funds B. Mutu
Chapter 22 - Futures Markets
Chapter 22 Futures Markets
Multiple Choice Questions 1. A futures contract A. is an agreement to buy or sell a specified amount of an asset at the spot price on the expiration date of the contract. B. is an agreement to buy or