V1_20100227_CFA一级上海基础班equity题目_张颍.doc

金程教育WWW.GFEDU.NET 专业经验增值Equity 1. Which of the following is the attribute that is most closely associated with the liquidity of a securities market?A. Low transaction costsB. Timely and accurate informationC. Price continuity and market depthD. Rapid adjustment of prices to new information2. A securit market in which all the bids and asks for a stock are gathered to arrive at a single price that satisfies most of the orders is best described as aA. call market.B. dealer market.C. primary market.D. continuous market.3. Adams owns 100 shares of Brikley stock, which is trading at $86 per share, and Brown is short 200 shares of Brikley. Adams wants to buy 100 more shares if the price rises to $90, and Brown wants to cover his short position and take profits if the price falls to $75. The orders Adams and Brown should enter to accomplish their stated objectives are:Adams BrownA. Limit buy at 90 Limit buy at 75B. Limit buy at 90 Stop buy at 75C. Stop buy at 90 Limit buy at 75D. Stop buy at 90 Stop buy at 754. In securities exchange markets, a member who executes stop loss or stop buy orders when the specified price occurs is most likely a:A. floor broker.B. market maker.C. registered trader.D. commission broker.5. You purchase 3000 shares of AMD at $9 using 50% margin. AMD does not pay a dividend, and the call rate on the margin loan is 1% per month. After 3 months, you liquidate this position at a share price of $12. What is rate of return on this trade?A. 31.83%B. 63.67%C. 33.34%D. 66.67%6. An investor purchased 550 shares of Akley common stock for $38,500 in a margin account and posted initial margin of 50% of this amount. The maintenance margin requirement is 35%. If the price of Akley falls to $52 per share, the investor:A. is not required to deposit more equity to maintain the long 550 share position.B. must deposit $9,900 to meet the resulting margin call.C. must deposit $5,775 to meet the resulting margin call.D. must deposit $660 to meet the resulting margin call.7. Hari Raju, CEO of Securities Tracking Associates (STA), is thinking of devising a new index for the Indian stock market. He does not, however, like an index that requires adjustment for stock splits. Given this preference, Raju would be least likely to develop which of the following types of indexes?A. Style IndexB. Un-weighted IndexC. Price-weighted IndexD. Value-weighted Index8. The table below lists information on price per share and shares outstanding for three stocks: Rocking, Payton, and Strand. January 1, 2007December 31, 2007StockPrice per Share# Shares OutstandingPrice per Share# Shares OutstandingRocking$1010,000$1510,000Payton$505,000$505,000Strand$100500$85500Which of the following statement is least accurate?A. An investor portfolio with 1,000 shares of each stock would track an equal-weighted index.B. A price-weighted index will exhibit a downward bias compared to a market value-weighted index.C. An equal-weighted index computed as an arithmetic mean would show higher returns than if it was calculated as a geometric mean.D. Returns on Payton would have the largest influence of the three on a market value-weighted index.9. With respect to the three forms of the efficient market hypothesis (EMH), is the information set associated with the semistrong-form of the EMH best described as including all information associated with the:weak-form of the EMH Strong-form of the EMHA. No NoB. No YesC. Yes NoD. Yes Yes10. Which of following below will a technical analysis most likely adhere to? Weak EMH Strong EMHA. No NoB. Yes NoC. No YesD. Yes Yes11. Which of the following statements about the limitations of markets to achieve perfectly efficient prices is least accurate?A. Restrictions on short sales cause overvalued stocks to be relatively more common than undervalued stocks.B. Some pricing inefficiencies will not be explioted because the return they offer is less than the transactions costs of exploiting them.C. Arbitrage trading is characterized by too much capital chasing too few pricing inefficiencies, limiting the ability of arbitrage to bring about fully efficient prices.D. The returns to trading strategies based on analysis of new information must be sufficient to compensate for the time and effort required to analyze new information.12. Jay Rybold bought 500 shares of Genoa Corp at $42 on July 1, believing the stock was undervalued at that price. News reports that wew negative for Genoas earnings outlook caused the price of Genoa shares to decline to $40 on August 1 and to $37 on September 1. Ignoring the negative news, Rybold bought additional shares on each of these dates, believing the stock must be even more undervalued at these lower prices. The behavioral characteristic Rybold is most likely displaying is:A. escalation bias.B. look-ahead bias.C. reaffirmation bias.D. overconfidence bias.13. Joseph Globe is estimating the country risk premium for equity investments in a foreign country. He would be least likely to consider the:A. transaction costs of trading in the foreign securities.B. average operating leverage of firms within the country.C. volatility of the countrys currency exchange rates.D. liquidity of the countrys equity markets.14. Rogers Partners values stocks using a dividend discount model and the CAPM. Holding all other factors constant, which of the following is least likely to increase the value they estimate for a stock?A. A decrease in expected inflation.B. An increase in the next periods expected dividend.C. A decrease in the stocks systematic risk.D. A decrease in the expected growth rate of dividends.15. An analyst gathered the following information about Jasmine Corporation:Required rate of return15%Current dividend per share(Do)$1.00Expected annual dividend growth rate for next two years20%Expected annual dividend growth rate for year three and thereafter6%The value of a share of Jasmines common stock is closest to: A. $11.78. B. $13.33.C. $14.91.D. $16.65.16. An analyst gathered the following annual data for a company:Net profit margin3%Total asset turnover2.5Total asset to equity2.0Net income for 2004$20,000,000Dividends paid on common stock during 2004 (D0)$4,000,000Shares of common stock outstanding2,000,000Risk-free rate of return5%Expected rate of return on the market index15%Beta for the companys stock1.5If the growth rate in dividends is constant, the value of a share of the companys common stock at the end of 2004 is closest to:A. $18.50.B. $20.00.C. $26.33.D. $28.00.17. An analyst is valuing Thial Inc.s common stock on a price to earnings (P/E) basis. Thials stock currently has a market price of $25 per share, with basic earnings per share (EPS) of $2.00 for the most recent year. Thial has issued securities that, if exercised, would increase the companys shares outstanding by 5%. Thials most recent basic EPS included nonrecurring earnings of $0.35 per share. Using diluted EPS, the most appropriate estimate of Thials trailing P/E is:A. 11.9B. 13.2C. 14.4D. 15.918. An analyst gathered the following information for a U.S. company whose common stock is currently priced at $40 per share:20002001200220032004Earnings per share ($)1.160.621.281.60(1.30)Book value per share ($)8.488.9216.0419.2816.30Return on equity14%7%8%8%Because of the severe cyclical contraction that occurred in 2004 for a major segment of the companys operations, the analyst has decided to normalize earnings using the 2000-2003 period. If the analyst also decides to account for changes in the companys size overtime, the most appropriate estimate of the companys 2004 price/earnings (P/E) ratio based on normalized earning is:A. 22.5B. 26.5C. 34.3D. 59.519. Emanuel Rodriguez, CFO, Monterrey Spikes Sporting Goods Inc., has gathered the following information about the company: (1-1-44)20012006Sales$149.7 million$220.0 millionReturn on assets (ROA)10%12%Net profit margin (NPM)6%7%Number shares outstanding5 million6 millionRodriguez expects sales in 2007 to grow at the historical compound annual growth of sales from the year 2001 to 2006. For the year 2007, the net profit margin and the number of shares outstanding are expected to remain unchanged from the year 2006. The companys earnings per share (EPS), for the year 2007, would be closest to:A. $2.74.B. $2.77.C. $4.69. D. $4.75.20. An analyst just received the following information for Mythical Interactions, Inc. A senior equity trader in her group wants to know if he should purchase a large block of the stock.Earnings retention rate65%Required rate of return, ke11%Return on equity (ROE), expected to remain constant13%Estimated Sales per share$175Estimated EBIDTA profit margin22%Estimated Depreciation per share$20Estimated Interest Expense per share$12Corporate Tax Rate40%Current market price$45.50Based on the assumptions above, which of the following recommendations is CORRECT? The analyst should advise the trader to:A. not purchase the stock. It is overvalued by approximately $10.20.B. purchase the stock. It is undervalued by approximately $10.20.C. not purchase the stock. It is overvalued by approximately $8.00.D. purchase the stock. It is undervalued by approximately $8.00.21. An analyst made the following statement: “When calculating price-to-book value ratios, adjustments are necessary to reflect both significant off-balance sheet items and equity claims that are senior to common stock.” The analysts statement is correct with respect to:A. off-balance sheet items but not equity claims.B. equity claims but not off-balance sheet items.C. both off-balance sheet items and equity claims.D. neither off-balance sheet items nor equity claims.22. An analyst gathered the following information from a companys most recent financial statements (in millions):Preferred stock$40Common stock ($10 par value, authorized 15 million shares, issued 12 million shares)$120Additional paid-in capital$30Retained earnings$190Treasury stock (repurchased 2 million shares)$55Tax rate40%The analyst also determined that the company uses the LIFO inventory method, but most companies in the industry use the FIFO method. The footnotes to the financial statements indicate that if the company had used the FIFO method, the inventory balance would have been $45 million higher than the amount reported on the companys most recent financial statements. If the companys common stock is currently selling for $68 per share, the most appropriate price to book value ratio used in valuing the company is: A. 1.84B. 1.93C. 2.06D. 2.1823. An analyst made the following statement: “According to empirical research, differences in both price-to-earnings ratios and price-to-