(最新整理)corporationfinancetestbankchapter08

1、(完整)corporation finance test bank chapter 08(完整)corporation finance test bank chapter 08 编辑整理：尊敬的读者朋友们：这里是精品文档编辑中心，本文档内容是由我和我的同事精心编辑整理后发布的，发布之前我们对文中内容进行仔细校对，但是难免会有疏漏的地方，但是任然希望（(完整)corporation finance test bank chapter 08）的内容能够给您的工作和学习带来便利。同时也真诚的希望收到您的建议和反馈，这将是我们进步的源泉，前进的动力。本文可编辑可修改，如果觉得对您有帮助请收藏以便随时查

2、阅，最后祝您生活愉快 业绩进步，以下为(完整)corporation finance test bank chapter 08的全部内容。12-67chapter 12 some lessons from capital market history answer key multiple choice questions1。last year, t-bills returned 2 percent while your investment in largecompany stocks earned an average of 5 percent. which one of the foll

3、owing terms refers to the difference between these two rates of return?a。risk premiumb。geometric returnc.arithmeticd.standard deviatione。variancerefer to section 12.3aacsb： n/ablooms: comprehensiondifficulty: basiclearning objective： 12-1section: 12.3topic： risk premium2.which one of the following b

4、est defines the variance of an investments annual returns over a number of years？a.the average squared difference between the arithmetic and the geometric average annual returns。b.the squared summation of the differences between the actual returns and the average geometric return.c。the average diffe

5、rence between the annual returns and the average return for the period。d.the difference between the arithmetic average and the geometric average return for the period.e.the average squared difference between the actual returns and the arithmetic average return。refer to section 12.4aacsb: n/ablooms：

6、comprehensiondifficulty： intermediatelearning objective: 12-1section： 12。4topic: variance3.standard deviation is a measure of which one of the following？a。average rate of returnb.volatilityc。probabilityd.risk premiume.real returnsrefer to section 12.4aacsb: n/ablooms: knowledgedifficulty： basiclearn

7、ing objective: 121section: 12.4topic： standard deviation4。which one of the following is defined by its mean and its standard deviation？a.arithmetic nominal returnb。geometric real returnc.normal distributiond。variancee.risk premiumrefer to section 12。4aacsb: n/ablooms: knowledgedifficulty： basiclearn

8、ing objective： 12-1section： 12。4topic： normal distribution5.the average compound return earned per year over a multi-year period is called the _ average return。a。arithmeticb。standardc.variantd。geometrice。realrefer to section 12.5aacsb: n/ablooms: knowledgedifficulty: basiclearning objective: 121sect

9、ion: 12.5topic: geometric average return6.the return earned in an average year over a multi-year period is called the _ average return。a.arithmeticb.standardc.variantd。geometrice.realrefer to section 12。5aacsb: n/ablooms： knowledgedifficulty: basiclearning objective: 121section： 12。5topic: arithmeti

10、c average return7。assume that the market prices of the securities that trade in a particular market fairly reflect the available information related to those securities. which one of the following terms best defines that market?a。riskless marketb。evenly distributed marketc.zero volatility marketd。bl

11、umes markete。efficient capital marketrefer to section 12。6aacsb： n/ablooms： knowledgedifficulty： basiclearning objective： 124section: 12。6topic: efficient capital market8。which one of the following statements best defines the efficient market hypothesis?a。efficient markets limit competition.b。securi

12、ty prices in efficient markets remain steady as new information becomes available.c.mispriced securities are common in efficient markets.d。all securities in an efficient market are zero net present value investments.e。profits are removed as a market incentive when markets become efficient。refer to s

13、ection 12。6aacsb: n/ablooms： comprehensiondifficulty： basiclearning objective： 12-4section： 12.6topic： efficient markets9.stacy purchased a stock last year and sold it today for $3 a share more than her purchase price. she received a total of 0.75 in dividends。 which one of the following statements

14、is correct in relation to this investment？a.the dividend yield is expressed as a percentage of the selling price。b。the capital gain would have been less had stacy not received the dividends。c.the total dollar return per share is 3.d.the capital gains yield is positive.e。the dividend yield is greater

15、 than the capital gains yield。refer to section 12。1aacsb: n/ablooms: comprehensiondifficulty： basiclearning objective: 12-1section： 12.1topic: returns10.which one of the following correctly describes the dividend yield?a。next years annual dividend divided by todays stock priceb.this years annual div

16、idend divided by todays stock pricec。this years annual dividend divided by next years expected stock priced。next years annual dividend divided by this years annual dividende。the increase in next years dividend over this years dividend divided by this years dividendrefer to section 12。1aacsb: n/abloo

17、ms: knowledgedifficulty： basiclearning objective： 12-1section： 12.1topic: dividend yield11。bayside marina just announced it is decreasing its annual dividend from 1.64 per share to $1.50 per share effective immediately。 if the dividend yield remains at its pre-announcement level, then you know the s

18、tock price:a.was unaffected by the announcement.b。increased proportionately with the dividend decrease。c。decreased proportionately with the dividend decrease.d。decreased by $0。14 per share.e。increased by $0.14 per share.refer to section 12。1aacsb: n/ablooms： comprehensiondifficulty： intermediatelear

19、ning objective: 12-1section: 12。1topic: dividend yield12.which one of the following statements related to capital gains is correct?a。the capital gains yield includes only realized capital gains.b。an increase in an unrealized capital gain will increase the capital gains yield。c.the capital gains yiel

20、d must be either positive or equal to zero.d.the capital gains yield is expressed as a percentage of the sales price。e。the capital gains yield represents the total return earned by an investor.refer to section 12.1aacsb： n/ablooms: comprehensiondifficulty： basiclearning objective: 12-1section: 12。1t

21、opic： capital gains yield13。which of the following statements is correct in relation to a stock investment？i. the capital gains yield can be positive, negative, or zero.ii。 the dividend yield can be positive， negative, or zero。iii. the total return can be positive， negative, or zero.iv. neither the

22、dividend yield nor the total return can be negative.a.i onlyb.i and ii onlyc。i and iii onlyd。i and iv onlye。iv onlyrefer to section 12。1aacsb: n/ablooms: comprehensiondifficulty： basiclearning objective： 121section： 12.1topic： stock returns14.the real rate of return on a stock is approximately equal

23、 to the nominal rate of return:a.multiplied by (1 + inflation rate).b.plus the inflation rate。c.minus the inflation rate。d。divided by （1 + inflation rate）。e.divided by （1- inflation rate）。refer to section 12。3aacsb： n/ablooms: knowledgedifficulty: basiclearning objective： 12-1section： 12。3topic： rea

24、l return15.as long as the inflation rate is positive， the real rate of return on a security will be _ the nominal rate of return。a.greater thanb.equal toc.less thand.greater than or equal toe.unrelated torefer to section 12。3aacsb: n/ablooms: comprehensiondifficulty： basiclearning objective： 121sect

25、ion： 12.3topic: real return16。smallcompany stocks, as the term is used in the textbook, are best defined as the：a.500 newest corporations in the u.s.b.firms whose stock trades otc.c.smallest twenty percent of the firms listed on the nyse。d。smallest twentyfive percent of the firms listed on nasdaq.e.

26、firms whose stock is listed on nasdaq。refer to section 12。2aacsb: n/ablooms: knowledgedifficulty： basiclearning objective： 12-2section: 12.2topic: smallcompany stocks17。which one of the following statements is a correct reflection of the u.s。 markets for the period 1926-2007?a.u.s. treasury bill ret

27、urns never exceeded a 9 percent return in any one year during the period。b.u。s. treasury bills provided a positive rate of return each and every year during the period.c。inflation equaled or exceeded the return on u。s。 treasury bills every year during the period。d。long-term government bonds outperfo

28、rmed u。s. treasury bills every year during the period。e。national deflation occurred at least once every decade during the period。refer to section 12。2aacsb: n/ablooms： knowledgedifficulty: basiclearning objective： 12-2section: 12.2topic： historical record18。which one of the following categories of s

29、ecurities had the highest average return for the period 19262007？a。u。s。 treasury billsb。large company stocksc.small company stocksd。long-term corporate bondse。longterm government bondsrefer to section 12.3aacsb: n/ablooms： knowledgedifficulty： basiclearning objective： 122section: 12。3topic: historic

30、al returns19.which one of the following categories of securities had the lowest average risk premium for the period 1926-2007?a.long-term government bondsb.small company stocksc.large company stocksd。long-term corporate bondse。u.s。 treasury billsrefer to section 12。3aacsb: n/ablooms: comprehensiondi

31、fficulty： basiclearning objective： 123section: 12。3topic： risk premium20.which one of the following categories of securities has had the most volatile returns over the period 1926-2007?a。long-term corporate bondsb.largecompany stocksc。intermediateterm government bondsd.u.s. treasury billse.smallcomp

32、any stocksrefer to section 12。4aacsb: n/ablooms: knowledgedifficulty： basiclearning objective: 123section: 12.4topic： historical riskss21。which one of the following statements correctly applies to the period 19262007?a。large-company stocks earned a higher average risk premium than did smallcompany s

33、tocks。b。intermediateterm government bonds had a higher average return than long-term corporate bonds。c.largecompany stocks had an average annual return of 14.7 percent。d。inflation averaged 2。6 percent for the period。e.u。s。 treasury bills had a positive average real rate of return.refer to section 12

34、.3aacsb: n/ablooms： knowledgedifficulty： basiclearning objective： 122section: 12。3topic： historical returns22。which one of the following time periods is associated with high rates of inflation？a。1929-1933b。19571961c.19781981d.1992-1996e。20012005refer to section 12。2aacsb: n/ablooms: knowledgedifficu

35、lty： basiclearning objective: 12-2section: 12。2topic: inflation23。which one of the following statements concerning u。s。 treasury bills is correct for the period 1926- 2007？a.the annual rate of return always exceeded the annual inflation rate。b。the average risk premium was 0.7 percent.c。the annual ra

36、te of return was always positive。d。the average excess return was 1.1 percent.e。the average real rate of return was zero.refer to sections 12.2 and 12.3aacsb： n/ablooms： knowledgedifficulty: basiclearning objective： 122section： 12.2 and 12。3topic: historical returns24。which one of the following is a

37、correct ranking of securities based on their volatility over the period of 1926-2007？ rank from highest to lowest。a。large company stocks, u.s。 treasury bills， longterm government bondsb.small company stocks， longterm corporate bonds, large company stocksc.small company stocks， longterm corporate bon

38、ds， intermediate-term government bondsd.large company stocks, small company stocks, long-term government bondse.intermediate-term government bonds， long-term corporate bonds, u。s. treasury billsrefer to section 12.4aacsb： n/ablooms： knowledgedifficulty: intermediatelearning objective： 12-3section: 1

39、2.4topic: historical riskss25。what was the highest annual rate of inflation during the period 19262007?a.between 0 and 3 percentb。between 3 and 5 percentc.between 5 and 10 percentd.between 10 and 15 percente。between 15 and 20 percentrefer to section 12。2aacsb: n/ablooms： knowledgedifficulty： basicle

40、arning objective: 122section: 12.2topic: inflation26.the excess return is computed as the：a。return on a security minus the inflation rate.b。return on a risky security minus the risk-free rate.c.risk premium on a risky security minus the risk-free rate。d。the riskfree rate plus the inflation rate。e。ri

41、sk-free rate minus the inflation rate.refer to section 12.3aacsb： n/ablooms: knowledgedifficulty: basiclearning objective： 121section: 12.3topic： excess return27.which one of the following earned the highest risk premium over the period 1926-2007?a。long-term corporate bondsb.u.s。 treasury billsc.sma

42、llcompany stocksd。largecompany stockse。long-term government bondsrefer to section 12.3aacsb： n/ablooms: knowledgedifficulty： basiclearning objective: 12-3section： 12.3topic: risk premium28。what was the average rate of inflation over the period of 1926-2007？a。less than 2。0 percentb。between 2。0 and 2.

43、5 percentc.between 2。5 and 3。0 percentd.between 3.0 and 3。5 percente.greater than 3.5 percentrefer to section 12.3aacsb: n/ablooms： knowledgedifficulty： basiclearning objective： 12-2section： 12.3topic： inflation29.assume that you invest in a portfolio of large-company stocks. further assume that the

44、 portfolio will earn a rate of return similar to the average return on largecompany stocks for the period 1926-2007。 what rate of return should you expect to earn?a。less than 10 percentb.between 10 and 12.5 percentc。between 12。5 and 15 percentd.between 15 and 17。5 percente。more than 17.5 percentrefe

45、r to section 12.3aacsb: n/ablooms： knowledgedifficulty： basiclearning objective: 12-2section： 12。3topic： historical returns30。the average annual return on small-company stocks was about _ percent greater than the average annual return on large-company stocks over the period 19262007.a.3b。5c.7d。9e。11

46、refer to section 12。3aacsb: n/ablooms: knowledgedifficulty: basiclearning objective: 12-2section: 12.3topic: historical returns31.which one of the following was the least volatile over the period of 1926-2007？a.largecompany stocksb.inflationc.longterm corporate bondsd.u.s. treasury billse.intermedia

47、teterm government bondsrefer to section 12。4aacsb: n/ablooms: knowledgedifficulty： basiclearning objective: 123section: 12。4topic: historical risks32。which one of the following statements is correct？a。the greater the volatility of returns， the greater the risk premium。b.the lower the volatility of r

48、eturns， the greater the risk premium。c.the lower the average return， the greater the risk premium。d。the risk premium is unrelated to the average rate of return.e.the risk premium is not affected by the volatility of returns.refer to sections 12。3 and 12。4aacsb: n/ablooms： comprehensiondifficulty： ba

49、siclearning objective： 12-3section: 12.3 and 12。4topic: risk premium33.which of the following correspond to a wide frequency distribution?i. relatively low riskii。 relatively low rate of returniii. relatively high standard deviationiv. relatively large risk premiuma。ii onlyb。iii onlyc.i and ii onlyd

50、。ii and iii onlye。iii and iv onlyrefer to section 12.4aacsb: n/ablooms： comprehensiondifficulty： basiclearning objective: 12-3section: 12。4topic： frequency distribution34。to convince investors to accept greater volatility, you must：a.decrease the risk premium.b。increase the risk premium。c.decrease t

51、he real return。d.decrease the riskfree rate。e.increase the riskfree rate。refer to section 12.4aacsb: n/ablooms: comprehensiondifficulty： basiclearning objective： 123section: 12。4topic: risk premium35.if the variability of the returns on large-company stocks were to increase over the longterm， you wo

52、uld expect which of the following to occur as a result？i. decrease in the average rate of returnii。 increase in the risk premiumiii。 increase in the 68 percent probability range of the frequency distribution of returnsiv. decrease in the standard deviationa。i onlyb.iv onlyc。ii and iii onlyd。i and ii

53、i onlye。ii and iv onlyrefer to section 12。4aacsb： n/ablooms： analysisdifficulty: intermediatelearning objective： 12-3section: 12。4topic： variability of returns36。which one of the following statements is correct based on the historical record for the period 19262007?a。the standard deviation of return

54、s for smallcompany stocks was double that of large-company stocks。b.u。s. treasury bills had a zero standard deviation of returns because they are considered to be riskfree.c。longterm government bonds had a lower return but a higher standard deviation on average than did long-term corporate bonds。d。inflation was less volatile than the returns on u.s。 treasury bills.e。long-term government bonds underperformed intermediateterm governm