Part 1

Question 1

 

 

Which of the following ratios is not a measurement of the firm's liquidity?

 

Question 2

 

 

Operating performance is divided into which two subcategories of ratios?

 

Question 3

 

 

The five major classes of ratios include the following, except

 

Question 4

 

 

Determinants of market liquidity include all except the

 

Question 5

 

 

A common-size balance sheet expresses all balance sheet items

 

Question 6

 

 

Dividend growth is a function of

 

Question 7

 

 

Which of the following factors influence an investor's required rate of return?

 

Question 8

 

 

The most appropriate discount rate to use when applying the Operating Free Cash Flows model is the firm's

 

Question 9

 

 

The growth rate of equity earnings without external financing is equal to

 

Question 10

 

 

The process of fundamental valuation requires estimates of all the following factors, except

 

Question 11

 

 

The U.S. balance of payments, the federal deficit and military contract awards are ____ of aggregate economic activity.

 

Question 12

 

 

The dividend payout ratio, the required rate of return on common equity, and the expected growth rate of stock dividends are the major variables that affect

 

Question 13

 

 

Which of the following variables was considered not significant in explaining stock returns?

 

Question 14

 

 

The initial effect of a change in monetary policy appears in ____ and only later in ____.

 

Question 15

 

 

If a diffusion index for new orders went from 87 to 74 and then to 68, it would indicate ____ receipt of new orders and indicate a ____ in breadth and the possibility of a future ____ in the series.

 

Question 16

 

 

Which of the following is not a stage in the industrial life cycle?

 

Question 17

 

 

Which of the following is not characteristic of the "growth" phase in the industry life cycle?

 

Question 18

 

 

At the initial stage of an economic recovery,

 

Question 19

 

 

Toward the end of a recession,

 

Question 20

 

 

At what stage in the industrial life cycle is there an influx of competition?

 

Question 21

 

 

Porter contends that ____ and ____ are two important competitive strategies.

 

Question 22

 

 

Which of the following is not considered in the price-earnings ratio technique?

 

Question 23

 

 

Which of the following is not considered a relative valuation technique?

 

Question 24

 

 

In a(n) ____ strategy, a firm seeks to identify itself as unique within its industry.

 

Question 25

 

 

Which of the following is not considered when looking at free cash flow to equity technique?

 

          Part 2

 

Question 1

 

 

A call option differs from a put option in that

 

Question 2

 

 

A vertical spread involves buying and selling call options in the same stock with

 

Question 3

 

 

A one year call option has a strike price of 60, expires in 6 months, and has a price of $2.5. If the risk free rate is 7%, and the current stock price is $55, what should the corresponding put be worth?

 

 

Question 4

 

 

A forward contract is similar to an option contract because they both

 

Question 5

 

 

The value of a call option just prior to expiration is (where V is the underlying asset's market price and X is the option's exercise price)

 

Question 6

 

 

The bond that maximizes the difference between the invoice price and the delivery price is referred to as the

 

Question 7

 

 

The process by which invest on margin accounts are credited or debited to reflect daily trading gains or losses is referred to as the ____ process.

 

Question 8

 

 

The basis (Bt,T) at time t between the spot price (St) and a futures contract expiring at time T (Ft,T) is

 

Question 9

 

 

An investor who wants a long position in a ____ must first place the order with a broker, who then passes it on to the trading pit or electronic network. Details of the order are then passed on to the exchange clearinghouse.

 

Question 10

 

 

Financial futures have become an increasingly attractive investment alternative since the Chicago Board of Trade (CBOT) began trading them in 1977, and their hedging function partly accounts for the growth in trading. Which of the following statements concerning financial futures is true?

 

Question 11

 

 

Which of the following is not a factor needed to calculate the value of an American call option?

 

Question 12

 

 

A currency call is like being ____ in the currency futures.

 

Question 13

 

 

If you were to purchase an October option with an exercise price of 50 for 8 and simultaneously sell an October option with an exercise price of 60 for 2, you would be

 

Question 14

 

 

In a money spread, an investor would

 

Question 15

 

 

In the Black-Scholes option pricing model, an increase in the risk free rate (RFR) will cause

 

Question 16

 

 

In the case of investment companies

 

Question 17

 

 

Investment companies or mutual funds that continue to sell and repurchase shares after their initial public offerings are referred to as

 

Question 18

 

 

The market price of a closed-end investment company has generally been

 

Question 19

 

 

Investing in emerging markets can be viewed as a global application of

 

Question 20

 

 

The main difference between a closed-end fund and an open-end fund is

 

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Status NEW Posted 18 Jan 2019 05:01 PM My Price 12.00

FIN----------- 55-----------0 W-----------eek----------- 11----------- Fi-----------nal----------- Ex-----------am-----------

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