2023年湖北金融英语考试模拟卷.docx
2023年湖北金融英语考试模拟卷本卷共分为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.The audit committee of a companys Board of Directors is most likely to act in the interests of shareholders when:（）A. a company officer other than the CEO controls the audit budget.B. a reliable communication firewall is in place between the committee and the company’s internal auditors.C. the committee has authority to prevent the company from engaging in non-audit business relationships with its external auditors.2.A hedge fund that takes perfectly offsetting long and short positions is best described as a(n):（）A. market-neutral fund.B. long/short fund.C. event-driven fund.3.The CFO of Magma Corporation expects interest rates especially LIBOR to increase. She would like to place the company in a position to profit from the expected interest rate increase. Which of the following interest rate swap arrangements would allow Magma to profit from an increase in LIBOR（）A. a swap in which Magma pays a fixed rate and receives a floating rate tied to LIBOR.B. a swap in which Magma pays a floating rate tied to LIBOR and receives a fixed rate.C. a swap in which Magma pays a fixed rate and receives a fixed rate.4.If given the standard deviations of the returns of two assets and the correlation between the two assets, which of the following would an analyst NOT necessarily be able to derive from these The:（）A. covariance between the returns.B. expected returns.C. variance of each return.5.Frank Adwood, CFA, is the chief compliance officer for Nills Investment Limited. Frank institutes a new policy requiring the pro rata distribution of new security issues to all discretionary accounts for which the new issues are appropriate. The policy does not provide for the distribution of new issues to non-discretionary accounts, but this is disclosed to all existing and potential clients. Did Frank most likely violate any CFA Institute Standards of Professional Conduct（）A. No.B. Yes, because the distribution policy fails to treat all discretionary accounts equally.C. Yes, because disclosure of inequitable allocation methods does not fulfill the duty for fail and equitable trade allocation procedures.6.Bill Valley has been working for Advisors, Inc. for several years, and he just joined CFA Institute. Valleys sister just received a large bonus in the form of stock options in Zephyr Inc, Valleys sister knows nothing about financial assets and offers Valley a week at her holiday home each year in exchange for Valley monitoring Zephyr and the value of her stock options. In order to comply with the Code and Standards, Valley needs to inform Advisors of:()A. the compensation in the form of the use of the holiday home only.B. the fact his sister owns the options on Zephyr stock only.C. both the use of the holiday home and his sister’s options.7.Which of the following statements concerning security valuation is FALSE()A. The best way to value a company with high and unsustainable growth that exceeds the required return is to use the temporary supernormal growth (multistage) model.B. The best way to value a company with no current dividend but who is expected to pay dividends in three years is to use the temporary supernormal growth (multistage) model.C. A firm with a $1.50 dividend last year, a dividend payout ratio of 40% , a return on equity of 12%, and a 15% required return is worth $18.24.8.A very large company has twice as many male employees relative to female employees. If a random sample of four employees is selected, what is the probability that all four employees selected are female（）A. 0.0625B. 0.0123C. 0.33339.In analyzing disclosures related to the financing liabilities of a company, which of the following disclosures would be least helpful to the analyst()A. The interest expense for the period as provided on the income statement or in a footnote.B. The present value of the future bond payments discounted at the coupon rate of the bonds.C. Fillings with the Securities and Exchange Commission (SEC) that disclose all outstanding securities and their features.10.Ly is a Treasury Manager with Deeter Holdings, a large consumer products holding company. The Assistant Treasurer has asked Ly to calculate the current yield (CY) and the Yield-to-first Call (YTC) on a bond the company holds that has the following characteristics: 7 years to maturity $ 1000 face value 7.0% semi-annual coupon Priced to yield 9.0 percent Callable at $1060 in two years If Ly calculates correctly, the CY and YTC are approximately: CY YTC（）A. 7.80% 15.72% B. 7.78% 15.72% C. 7.80% 15.82%A. B. C. 11.If you buy 100 shares of a $ 50 stock on margin when the initial margin requirement is 40 percent, how much money must you borrow from your broker（）A. $ 2000.B. $ 4000.C. $ 3000.12.An investor gathered the following information about an option-free U. S. corporate bond: Par Value of $10 million Convexity of 45 Duration of 7 If interest rates increase 2 percent (200 basis points), the bonds percentage price change is closest to:() 13.An analyst who is an CFA Institute member receives an invitation from a business associates firm to spend the weekend in a high-quality resort, in order to abide by the Standards, the analyst should (may):（）A. write a memo to his supervisor notifying the supervisor of the trip.B. do all of the actions listed here.C. accept if it is a client whose portfolio he manages.14.Which of the following is a disadvantage of using the price-to-book value (PBV) ratio()A. Book values are affected by accounting standards, which may vary across firms and countries.B. Firms with negative earnings cannot be evaluated with the PBV ratios.C. Book value may not mean much for manufacturing firms with significant fixed costs.15.Which of the following statements regarding allocating trades is TRUE.9 It is permissible under the Standards to allocate trades:()A. on a pro-rata basis over all suitable accounts.B. based upon compensation arrangements.C. based upon client relationships with the firm.16.Books Forever Inc. uses notes payable to buy inventory. Assuming an initial current ratio that is greater than 1 and an initial quick (or acid test) ratio that is less than 1, what is the effect of this transaction on the current ratio, the quick ratio, and net income Current ratio Quick ratio Net income()A. Decrease Decrease No impactB. Increase Increase No impactC. Decrease Increase Increase17.Alen Bishop earned the fight to use the CFA designation in September 1968. Alen recently retired from the investment management profession. As he is retired, Alen no longer attends CFA Institute society meetings and has stopped paying his CFA Institute dues. According to the Standards of Practice Handbook, how should Alen refer to his affiliation with the CFA Program()A. Alen Bishop, CFA.B. Aien Bishop, CFA (retired).C. I was awarded the CFA charter in 1968.18.Do the following characteristics have to be met in order to classify a liability as current on the balance sheet Characteristic 1: Settlement is expected within one year or operating cycle, whichever is less. Characteristic 2: Settlement will require the use of cash within one year or operating cycle, whichever is greater. Characteristic 1 Characteristic 2（）A. No Yes B. No No C. Yes NoA. B. C. 19.An analyst wants to determine whether the monthly returns on two stocks over the last year were the same or not. What test should she use if she is willing to assume that the returns are normally distributed（）A. A paired comparisons test because the samples are not independent.B. A difference in means test with pooled variances from the two samples.C. An F-test with the greater mean in the numerator.20.For an analyst evaluating the common stock of a financial institution that reported a small loss for the year just ended, the price multiple that is least likely to be meaningful is:()A. price to cash flow.B. leading price to earnings.C. trailing price to earnings.21.At a recent Haggerty Semiconductors Board of Directors meeting, Merle Haggerty was asked to discuss the topic of the companys weighted average cost of capital (WACC). At the meeting Haggerty made the following statements about the companys WACC: Statement 1: A company creates value by producing a higher return on its assets than the cost of financing those assets. As such, the WACC is the cost of financing a firms assets and can he viewed as the firms opportunity cost of financing its assets. Statement 2: Since a firm s WACC reflects the average risk of the projects that make up the firm, it is not appropriate for evaluating all new projects. It should be adjusted upward for projects with greater-than-average risk and downward for projects with less-than-average risk. Are Statement 1 and Statement 2, as made by Haggerty correct Statement 1 Statement 2（）A. Incorrect Incorrect B. Correct Incorrect C. Correct CorrectA. B. C. 22.Which of the following statements about primary and secondary markets is FALSE()A. The proceeds from a sale in the secondary market go to the issuing unit, not the current owner of the security.B. The primary market benefits from the liquidity provided by the secondary market.C. A secondary market is a market in which existing securities are traded among investors.23.The underlying cause of ranking conflicts between the net present value (NPV) and internal rate of return (IRR) methods is the underlying assumption related to the:（）A. initial cost.B. reinvestment rate.C. cash flow timing.24.David Landau, CFA, was discussing the biases associated with the Consumer Price Index (CPI). He was also discussing the effect of these biases on determining the inflation rate of an economy. Which of the following is least likely a source of bias in CPI data and does the CPI generally understate or overstate the true rate of inflation Not a source of bias CPI bias direction（）A. Outlet substitution OverstateB. Quality changes UnderstateC. Consumer preferences Overstate25.ABC Investments has purchased a new computer system for $1.4 million and decided to depreciate it over a 4-year period on a sum-of-years digits (SYD) method. ABC estimates that the salvage value will be $ 200000 at the end of the four years. What will be the depreciation expense for the third year（）A. $ 300000.B. $ 240000.C. $186000.26.A stated objective of the CFA Institutes Global Investment Performance Standards(GIPS) is to:（）A. encourage investment companies to develop the Code of Ethics internally.B. to foster the notion of industry self-regulation on a global basis.C. foster superior investment performance among investment companies.27.The following table contains ratios for 2005 and 2006 for Benrttd Company: 2005 2006 EBIT margin (EBIT/revenue) 0.15 0.10 Asset turnover (revenue/assets) 1.00 1.50 Leverage ratio (assets/equity) 2.00 2.50 Tax burden (net income/EBT) 0.70 0.70 Interest burden (EBT/EBIT) 0.95 0.95 Which of the following statements about Benrud Companys return on equity (ROE) is most accurate ROE:（）A. decreased, because the company’s profit margin fell.B. increased, due to the increase in turnover and leverage.C. increased, because the company’ s asset turnover increased.28.In a recent discussion on the quantity theory of money, three junior economists, Fred Sauvage, Linda McIntyre and Jason Richards, were discussing the long-run changes in economic variables that would result from an increase in the money supply. They stated the following: Sauvage: According to the quantity theory of money, in the long run only the price level would change if the central bank increased the money supply. McIntyre: According to the quantity theory of money, an increase in the money supply would bring about a long-run decline in unemployment. Richards: According to the quantity theory of money, in the long run only the velocity of money would change as a result of an increased money supply. Are the statements made by Sauvage, McIntyre and Richards correct Sauvage McIntyre Richards()A. Incorrect Correct CorrectB. Correct Incorrect IncorrectC. Correct Incorrect Correct29.Which of the following statements about the financial implications of capitalization versus expensing is least accurate（）A. Capitalizing will result in smoother reported income than expensing, and expensing will result in higher leverage ratios than capitalizing.B. Capitalization will result in lower leverage ratios than expensing, but expensing will result in higher later year profitability ratios than capitalization.C. Cash flow from operations is not affected by the capitalizing versus expensing decision, but the investing and financing cash flows depend on the method the firm chooses.30.A company has an asset with the following characteristics: Net book value of $ 500000 (original cost of $ 1300000 less accumulated depreciation of $ 800000). Undiscounted expected future cash flows of $ 470000 present value of expected future cash flows of $ 380000. Which of the following statements about the accounting treatment of this asset is least accurate()A. The asset is deemed to be impaired, because the present value of expected future cash flows is less than the carrying value.B. The future impact of an impairment recognition is to increase net income, asset turnover ratios, and leverage ratios.C. If an impairment is recognized, the company will report a $120000 write-off in income from continuing operations.31.An analyst gathers the following information about four stocks.The analyst estimates that the risk-flee rate is 5%, and the return on the market portfolio is 12%. Based on the above inputs and the capital asset pricing model (CAPM) , which of the following statements about the valuation of the four stocks is most accurate Stock A Stock B Stock C Stock D()A. Undervalued Overvalued Properly valued UndervaluedB. Undervalued Properly valued Overvalued OvervaluedC. Overvalued Properly valued Undervalued Undervalued32.Which of the following statements about a capital lease is FALSE（）A. As compared to an operating lease, a capital lease will report higher operating cash flows and lower financing cash flows.B. When a capital lease is initiated, the present value of the leased assets is treated as an investing cash flow.C. Total cash flows are not affected by the accounting treatment of the lease.33.Which of the following portfolios could NOT lie on the efficient frontier()APortfolioBExpected ReturnCStandard De
