2022贵州金融英语考试模拟卷（4）.docx

2022贵州金融英语考试模拟卷（4）本卷共分为1大题50小题，作答时间为180分钟，总分100分，60分及格。一、单项选择题（共50题，每题2分。每题的备选项中，只有一个最符合题意） 1.A funded investor has a short-term investment returning a 7 percent return. The borrowing costs are 20 basis points above the reference rate. If the T-bill rate is 3 percent and the LIBOR rate is 3.5 percent, what is the investors current profit on this investment()A.3.3%.B. 1.5%.C. 3.8%.2.Assuming all other factors remain unchanged, which of the following would most likely lead to a decrease in the market P/E ratio（）A. A rise in the stock risk premium.B. A decline in the risk-free rate.C. An increase in the dividend payout ratio.3.If flotation costs are treated correctly in calculating the net present value of a project that will begin in the current period, the flotation costs are most likely:（）A. reflected in the discount rate used for the project.B. included in the initial outlay.C. to reduce NPV less if a high discount rate is used for the project.4.An independent analyst has only one client. One of the clients largest holdings is a brokerage firm. Because of the large holding by his client, the brokerage firm recently began allowing the analyst to tap into the firms computer network to use the firms research facilities. This is allowable as long as the analyst:（）A. discloses the relationship to the client.B. uses the resources to help manage the client’s account.C. does all of the actions listed here.5.An analyst is considering a company that has had Net Income of $ 15000000 on sales of $ 500000000. The company also has a Total Asset Turnover rate of 1.50 and a Total Assets/Equity ratio of 2.0. The company has a target payout ratio of 40%, what is the expected long-term earnings growth rate for this company（）A. 9.25%.B. 6.00%.C. 5.40%.6.BPM Ltd. has the following capital structure: 40 percent debt and 60 percent equity. The cost of retained earnings is 13 percent, and the cost of new common stock is 16 percent. BPM will not have any retained earnings available in the upcoming year. Its before tax cost of debt is 8 percent, and its corporate tax rate is 40 percent. BPM is considering between two mutually exclusive projects that have the following cash flows:Which project should BPM choose()A. Project B since its NPV is $ 22 million.B. Project A since its NPV is $16 million.C. Project A since its net present value (NPV) is +$5.01 million.7.The following shows the yearly returns of aggressive equity funds for four years: 1999=+5% 2000=+2% 2001=+1% 2002=-4% Assume that this distribution can represent either the population or a sample of aggressive equity funds. Calculate the population and sample standard deviation. Population Standard Deviation Sample Standard Deviation（）A. 2.73% 3.99%B. 3.09% 4.55%C. 3.24% 3.74%8.A pension fund expects to pay obligations of $ 5000000 4 years from today. The fund will fund this obligation by making 5 annual, equal deposits into an account earning 3% , with the first deposit occurring today, and the last occurring at the time the obligation is due. What size must each annual deposit be（）A. $ 904874.B. $ 941773.C. $1125662.9.Which of the following statements regarding spot rates and zero-coupon bonds is least accurate（）A. The graph of current corporate bond yields is called the spot yield curve.B. The yield to maturity on a zero coupon bond is called the spot interest rate.C. With zero coupon bonds, investors have no reinvestment risk.10.In preparing its cash flow statement for the year ended December 31, 2004, Giant Corporation collected the following data:In its December 31, 2004, statement of cash flows, what amounts should Giant report as net cash used in investing activities and net cash used in financing activities Investing Activities Financing Activities()A. $178000 - $ 38000B. $170000 $ 37000C. $170000 - $ 3800011.When a risk-free asset is unavailable, the optimal portfolio on an efficient frontier for each investor is represented by the:（）A. market portfolio.B. utility curve that intersects the efficient frontier.C. highest utility curve that is tangent to the efficient frontier.12.The committee charged with recommending a compensation package for members of a firms board of directors has recommended that in addition to compensation of $10000 for each board meeting attended, board members will be able to use one of the firms corporate jets up to twice each year and will receive a finders fee of 0. 1% if they identify an acquisition target that the firm acquires while the member is still on the board. Are these policies consistent with good corporate governance practices Use of Jet Finders fees（）A. Yes Yes B. No Yes C. No NoA. B. C. 13.Which of the following statements about monopolists is most likely correct（）A. Without government intervention, monopolists will always earn profits.B. A monopolist maximizes price where marginal revenue equals marginal cost.C. Monopolists have imperfect information about demand.14.John Maginn, an investment researcher, who is a CFA charter holder, takes a trip for which his firm will pay all the expenses. Upon his return he alters some of the numbers on restaurant receipts to inflate the expenses by $ 52. Is this a violation relating to Professional Misconduct（）A. No, because the expense inflated is under $100.B. No, if such behavior is not significant.C. Yes, because it is a crime of moral turpitude.15.A firm issues a 4-year semiannual-pay bond with a face value of $10 million and a coupon rate of 10%. The market interest rate is 11% when the bond is issued. The interest expense for the first semiannual period and the balance sheet liability at the end of the first semiannual period are closest to: Interest expense Balance sheet liability （）A. $ 532580 $ 9683272 B. $ 532580 $ 9715852 C. $ 550000 $ 9683272A. B. C. 16.Which of the following statements is most correct concerning a members obligation to his or her employer under the Code and Standards（）A. Consent from the employer is necessary to permit independent practice that could result in compensation or other benefits in competition with the member’s employer.B. Members are prohibited from making arrangements or preparations to go into competitive business before terminating their relationship with their employer.C. Members are prohibited from undertaking independent practice in competition with their employer.17.In 2005, Wilson, Inc. entered into a long-term construction contract with the Gordon School District to construct an elementary school for $ 20 million. The cost to complete the contract has been reliably estimated at $15 million. During 2005, costs of $ 7.5 million were incurred under the contract. A total of $ 9 million in advance billings were made and $ 5 million of those billings were received in cash. If Wilson used the percentage-of-completion method to account for this contract, Wilson, Inc.s balance sheet as of December 31, 2005, will show a balance of:（）A. $ 4 million in the Net Construction-in-Progress asset account.B. $ 4 million in the Net Advance Billings liability account.C. $ 1 million in the Net Construction-in-Progress asset account.18.During 2004 Nancy Arnold received an undergraduate business degree with a management major and completed all requirements for the CFA designation imposed by CFA Institute. She is applying for employment at several brokerage firms. Her resume states, "I was awarded the CFA degree in 2004 by CFA Institute." Her resume also states that she graduated "with honors" and majored in finance. Her grade point average was 3.48 but "with honors" requires a 3.50 grade point average. Which of the following statements about Standard (B), Reference to CFA Institute, the CFA Designation, and the CFA Program, and Standard (C) , Misrepresentation, is TRUE Arnold:（）A. did not violate either Standard (B) or Standard (C).B. violated Standard (C) but she did not violate Standard (B).C. violated both Standard (B) and Standard (C).19.Jill Marsh, CFA, works for Advisors where she manages a portfolio for a wealthy family. Marsh earns one percent of the portfolios value each year in the form of a commission from Advisors. The family just told her that any year the portfolio she manages earns more than a 10 percent return, the family will give her the use of the familys vacation home for one week. Hirsh will comply with Standard (B), Additional Compensation Arrangements, if she:（）A. does nothing with respect to this.B. sends an e-mail to her supervisor about the vacation home.C. delivers a typed memo to her supervisor about the vacation home the first time she uses it.20.Which of the following is a limitation to fully efficient markets（）A. The gains to be earned by information trading can be less than the transaction costs the trading would entail.B. In general, for securities with smaller transaction costs, the deviations from informationally efficient prices are greater than for securities with larger transaction costs.C. There are no limitations to fully efficient markets because the trading actions of fundamental and technical analysts are continuously keeping prices at their intrinsic value.21.iron Biggs is considering a real estate investment. In the first year, the property is expected to generate revenue of $ 65000. The expense in the first year is $ 25000 and the depreciation allowance will be 2.6 percent of the $ 350000 initial investment. Assuming all cash flows occur at the end of the year and Biggs expects to be in a 35 percent marginal tax bracket, the after-tax cash flow in year 1 is closest to:（）A. $ 20085.B. $ 29185.C. $ 30900.22.On 1 January 2004, the value of an investors portfolio is $ 89000. The investor plans to donate $ 4000 to charity organization and pay $ 2000 to his insurance account on 31 December of 2004, but meanwhile he does not want the year-end portfolio value to be below $ 89000. If the expected return on the existing portfolio is 12 percent with a variance of 125, the safety-first ratio that would be used to evaluate the portfolio based on Roy s criterion is closest to:（）A. 0.236.B. 0.365.C. 0.471.23.Xiang Li, CFA, deputy treasurer for BBB College, manages the Student Scholarship Trust. Li issued a Request for Proposals (RFP) for domestic equity managers. Gong Cheng, CFA, a good friend of Li, introduces him to representatives from Capital Investments, who submitted a proposal. Li selected Capital as a manager based on the firbas excellent performance record. Shortly after the selection, Cheng, who had outstanding performance as an equity manager with another firm, accepted a lucrative job with Capital. Have Li and Chen, respectively, violated any CFA Institute Standards of Professional Conduct . Li Chen（）A. No No B. No Yes C. Yes NoA. B. C. 24.Hanson Aluminum, Inc. is considering whether to build a mill based around a new roiling technology the company has been developing. Management views this project as being riskier than the average project the company undertakes. Based on their analysis of the projected cash flows, management determines that the projects internal rate of return is equal to the companys marginal cost of capital If the project goes forward, the company will finance it with newly issued debt. Should management accept or reject this project（）A. Accept, because the project returns the company’s cost of capital.B. Accept, because the marginal cost of the new debt is less than the project’s internal rate of return.C. Reject, because the project reduces the value of the company when its risk is taken into account.25.George, CFA, a citizen of Germany, is doing business in a neighboring country. According to AIMR Standards of Professional Conduct, which statement applies to George s conduct when he is conducting business in the other country（）A. He is not bound by any of the regulations because France and the other country have no jurisdiction in each other’s countries.B. He should adhere to whichever of France’s, the other country’s or AIMR’s rules that impose the highest degree of responsibility.C. He should only adhere to the securities laws of France even though they do not cover some of the provisions found in the laws of the other country that relate to his work.26.The increase in inventory required due to a new capital budgeting project implementation would be classified as a:（）A. cost (negative cash flow) at time zero.B. benefit (positive cash flow) at time zero.C. cost (negative cash flow) in each year the firm needs the increased inventory.27.When the Rivers Company filed its corporate tax returns for the first quarter of the current year, it owed a total of $ 6.7 million in corporate taxes. Rivers paid $ 4.4 million of the tax bill, but still owes $ 2.3 million; it also received $ 478000 in the second quarter as a down payment towards $ 942000 in custom-built products to be delivered in the third quarter. Its financial accounts for the second quarter most likely show the $ 2.3 million and the $ 478000 as $ 2.3 million $ 478000.（）A. Income tax payable unearned revenue.B. Income tax payable accrued revenue.C. Deferred tax liability unearned revenue.28.In accounting for long-term construction contracts, the percentage-of-completion method is preferable to the completed contract method when: （）A. the contracts are of a relatively short duration (less than one year).B. lack of dependable cost estimates cause forecasts to be doubtful.C. estimates of the costs to complete and the extent of progress toward completion are reasonably dependable.29.Based on CFA Institute Standards of Professional Conduct, which of the following statements is a violation of Standard (C), Misrepresentation（）A. A young trainee bond trader tells a prospective client that she can assist the client in all the client’s investment needs: equity, fixed income, and derivatives and based on her years of experience as an analyst in the business that an investment looks like it has lots of potential.B. A trust officer recommends lengthening the average maturity of a bond portfolio because she believes long-term interest rates will decline over the next few months.C. An investment manager recommends to a prospective client an investment in GNMA bonds because they are guaranteed by the federal government.30.The correlation derived from a historical analysis of bond market returns in the U.S. and in Canada is 0.72. Which of the following statements is true（）A. When the U. S. market has a below average performance, the Canadian marke