Practice Questions for Exam I
Investments Fall 2015-16
1. What is a financial asset?
Intangible asset that derives value because of a contractual claim; stocks, bonds, bank
deposits, and the like are examples. Claims on real assets or claims on asset inco
1. At 8%, compounded annually, how long will it take $750 to double?
A) 9 years
B) 8 years
C) 12 years
D) 4 years
2. High discount rates favor
A) neither long-term nor short-term investments.
B) both long-term and short-term investments.
C) long-term inve
Income measurement and Profitability Analysis
Extra Practice Questions
On February 1, 2010, Marcos Contractors agreed to construct a building at a contract price of
$3,000,000. Marcos estimated total construction costs wo