公司理财 习题库 Chap012.doc

《公司理财 习题库 Chap012.doc》由会员分享，可在线阅读，更多相关《公司理财 习题库 Chap012.doc（24页珍藏版）》请在淘文阁 - 分享文档赚钱的网站上搜索。

1、CHAPTER 12 Some Lessons from Capital Market HistoryI.DEFINITIONSRISK PREMIUM a1.The excess return required from a risky asset over that required from a risk-free asset is called the: a.risk premium. b.geometric premium. c.excess return. d.average return. e.variance.VARIANCE b2.The average squared di

2、fference between the actual return and the average return is called the: a.volatility return. b.variance. c.standard deviation. d.risk premium. e.excess return.STANDARD DEVIATION c3.The standard deviation for a set of stock returns can be calculated as the: a.positive square root of the average retu

3、rn. b.average squared difference between the actual return and the average return. c.positive square root of the variance. d.average return divided by N minus one, where N is the number of returns. e.variance squared.NORMAL DISTRIBUTION d4.A symmetric, bell-shaped frequency distribution that is comp

4、letely defined by its mean and standard deviation is the _ distribution. a.gamma b.Poisson c.bi-modal d.normal e.uniformGEOMETRIC AVERAGE RETURN d5.The average compound return earned per year over a multi-year period is called the _ average return. a.arithmetic b.standard c.variant d.geometric e.rea

5、l精品文档就在这里 -各类专业好文档，值得你下载，教育，管理，论文，制度，方案手册， 应有尽有- - -ARITHMETIC AVERAGE RETURN a6.The return earned in an average year over a multi-year period is called the _ average return. a.arithmetic b.standard c.variant d.geometric e.realEFFICIENT CAPITAL MARKET e7.An efficient capital market is one in which:

6、a.brokerage commissions are zero. b.taxes are irrelevant. c.securities always offer a positive rate of return to investors. d.security prices are guaranteed by the U.S. Securities and Exchange Commission to be fair. e.security prices reflect available information.EFFICIENT MARKETS HYPOTHESIS a8.The

7、notion that actual capital markets, such as the NYSE, are fairly priced is called the: a.Efficient Markets Hypothesis (EMH). b.Law of One Price. c.Open Markets Theorem. d.Laissez-Faire Axiom. e.Monopoly Pricing Theorem.STRONG FORM EFFICIENCY b9.The hypothesis that market prices reflect all available

8、 information of every kind is called _ form efficiency. a.open b.strong c.semi-strong d.weak e.stableSEMI STRONG FORM EFFICIENCY c10.The hypothesis that market prices reflect all publicly-available information is called _ form efficiency. a.open b.strong c.semi-strong d.weak e.stableCHAPTER 12-精品 文档

9、- -WEAK FORM EFFICIENCY d11.The hypothesis that market prices reflect all historical information is called _ form efficiency. a.open b.strong c.semi-strong d.weak e.stableII.CONCEPTSTOTAL RETURN d12.The total percentage return on an equity investment is computed using the formula _, where P1 is the

10、purchase cost, P2 represents the sale proceeds, and d is the dividend income. a.(P2 P1) (P2 + d) b.(P1 P2) (P2 + d) c.(P1 P2 d) P1 d.(P2 P1 + d) P1 e.(P2 P1 + d) P2DIVIDEND YIELD a13.The dividend yield is equal to _, where P1 is the purchase cost, P2 represents the sale proceeds, and d is the divide

11、nd income. a.d P1 b.d P1 c.d P2 d.d P2 e.d (P1 + P2)DIVIDEND YIELD c14.The Zolo Co. just declared that they are increasing their annual dividend from $1.00 per share to $1.25 per share. If the stock price remains constant, then: a.the capital gains yield will decrease. b.the capital gains yield will

12、 increase. c.the dividend yield will increase. d.the dividend yield will also remain constant. e.neither the capital gains yield nor the dividend yield will change.CAPITAL GAIN b15.The dollar amount of the capital gain on an investment is computed as _, where P1 is the purchase cost, P2 represents t

13、he sale proceeds, and d is the dividend income. a.P1 P2 b.P2 P1 c.P2 P1 d.P1 P2 + d e.P2 P1 d精品文档就在这里 -各类专业好文档，值得你下载，教育，管理，论文，制度，方案手册， 应有尽有- - -TOTAL RETURN e16.The capital gains yield plus the dividend yield on a security is called the: a.variance of returns. b.geometric return. c.average period re

14、turn. d.summation of returns. e.total return.REAL RETURN c17.The real rate of return on a stock is approximately equal 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- infla

15、tion rate).REAL RETURN c18.As long as the inflation rate is positive, the real rate of return on a security investment will be _ the nominal rate of return. a.greater than b.equal to c.less than d.greater than or equal to e.unrelated toHISTORICAL RECORD d19.A portfolio of large company stocks would

16、contain which one of the following types of securities? a.stock of the firms which represent the smallest 20 percent of the companies listed on the NYSE b.U.S. Treasury bills c.long-term corporate bonds d.stocks of firms included in the S small company stocks. b.long-term government bonds; long-term

17、 corporate bonds. c.U.S. Treasury bills; long-term government bonds. d.long-term corporate bonds; small company stocks. e.large company stocks; long-term corporate bonds.HISTORICAL RECORD d24.During the period of 1926 through 2003 the annual rate of inflation: a.was always positive. b.was only negat

18、ive during the 3 years of the Great Depression. c.never exceeded 10 percent. d.fluctuated significantly from one year to the next. e.tended to be negative during the years of World War II.HISTORICAL RECORD e25.Based on the period of 1926 through 2003 the annual rate of inflation ranged from _ percen

19、t to _ percent. a.-5; 6 b.-5; 9 c.-7; 6 d.-7; 15 e.-10; 18精品文档就在这里 -各类专业好文档，值得你下载，教育，管理，论文，制度，方案手册， 应有尽有- - -HISTORICAL RECORD b26.$1 invested in U.S. Treasury bills in 1926 would have increased in value to _ by 2003. a.$10 b.$17 c.$30 d.$43 e.$60HISTORICAL RECORD d27.Which one of the following is a

20、 correct ranking of securities based on their volatility over the period of 1926 to 2003? Rank from highest to lowest. a.large company stocks, U.S. Treasury bills, long-term government bonds b.small company stocks, long-term corporate bonds, large company stocks c.small company stocks, long-term gov

21、ernment bonds, long-term corporate bonds d.large company stocks, long-term corporate bonds, long-term government bonds e.long-term government bonds, long-term corporate bonds, U.S. Treasury billsHISTORICAL RECORD d28.$1 invested in small company stocks in 1926 would have increased in value to _ by 2

22、003. a.$60 b.$2,284 c.$4,092 d.$10,953 e.$13,185HISTORICAL RECORD d29.The highest rate of annual inflation between 1926 and 2003 was_ percent. a.7 b.10 c.13 d.18 e.22HISTORICAL RECORD e30.The annual return on long-term government bonds has ranged between _ percent and _ percent during the period 192

23、6 to 2003. a.-2; 8 b.-4; 6 c.-5; 10 d.-6; 29 e.-7; 44CHAPTER 12-精品 文档- -HISTORICAL RECORD e31.Over the period of 1926 to 2003, small company stocks had an average return of _ percent. a.8.8 b.10.2 c.12.4 d.14.6 e.17.5HISTORICAL AVERAGE RETURNS c32.Over the period of 1926 to 2003, the average rate of

24、 inflation was _ percent. a.2.0 b.2.7 c.3.1 d.3.8 e.4.3HISTORICAL AVERAGE RETURNS c33.The average annual return on long-term corporate bonds for the period of 1926 to 2003 was _ percent. a.3.8 b.5.8 c.6.2 d.7.9 e.8.4AVERAGE RETURNS b34.The average annual return on small company stocks was about _ pe

25、rcent greater than the average annual return on large-company stocks over the period of 1926 to 2003. a.3 b.5 c.7 d.9 e.11RISK PREMIUM a35.The average risk premium on U.S. Treasury bills over the period of 1926 to 2003 was _ percent. a.0.0 b.1.6 c.2.2 d.3.1 e.3.8精品文档就在这里 -各类专业好文档，值得你下载，教育，管理，论文，制度，方

26、案手册， 应有尽有- - -RISK PREMIUM a36.Which one of the following is a correct statement concerning risk premium? a.The greater the volatility of returns, the greater the risk premium. b.The lower the volatility of returns, the greater the risk premium. c.The lower the average rate of return, the greater th

27、e risk premium. d.The risk premium is not correlated to the average rate of return. e.The risk premium is not affected by the volatility of returns.RISK PREMIUM c37.The risk premium is computed by _ the average return for the investment. a.subtracting the inflation rate from b.adding the inflation r

28、ate to c.subtracting the average return on the U.S. Treasury bill from d.adding the average return on the U.S. Treasury bill to e.subtracting the average return on long-term government bonds fromRISK PREMIUM c38.The excess return you earn by moving from a relatively risk-free investment to a risky i

29、nvestment is called the: a.geometric average return. b.inflation premium. c.risk premium. d.time premium. e.arithmetic average return.RISK PREMIUM b39.To convince investors to accept greater volatility in the annual rate of return on an investment, you must: a.decrease the risk premium. b.increase t

30、he risk premium. c.decrease the expected rate of return. d.decrease the risk-free rate of return. e.increase the risk-free rate of return.FREQUENCY DISTRIBUTION a40.Which one of the following takes the shape of a bell curve? a.frequency distribution b.variance c.risk premium graph d.standard deviati

31、on e.deviation of returnsCHAPTER 12-精品 文档- -VARIANCE e41.Which of the following statements are correct concerning the variance of the annual returns on an investment? I.The larger the variance, the more the actual returns tend to differ from the average return. II.The larger the variance, the larger

32、 the standard deviation. III.The larger the variance, the greater the risk of the investment. IV. The larger the variance, the higher the expected return. a.I and III only b.II, III, and IV only c.I, III, and IV only d.I, II, and III only e.I, II, III, and IVVARIANCE a42.The variance of returns is c

33、omputed by dividing the sum of the: a.squared deviations by the number of returns minus one. b.average returns by the number of returns minus one. c.average returns by the number of returns plus one. d.squared deviations by the average rate of return. e.squared deviations by the number of returns pl

34、us one.STANDARD DEVIATION b43.Which of the following statements concerning the standard deviation are correct? I.The greater the standard deviation, the lower the risk. II.The standard deviation is a measure of volatility. III.The higher the standard deviation, the less certain the rate of return in

35、 any one given year. IV. The higher the standard deviation, the higher the expected return. a.I and III only b.II, III, and IV only c.I, III, and IV only d.I, II, and III only e.I, II, III, and IVSTANDARD DEVIATION a44.The standard deviation on small company stocks: I.is greater than the standard de

36、viation on large company stocks. II.is less than the standard deviation on large company stocks. III.had an average value of about 33 percent for the period 1926 to 2003. IV. had an average value of about 20 percent for the period 1926 to 2003. a.I and III only b.I and II only c.II and III only d.II

37、 and IV only e.I and IV only精品文档就在这里 -各类专业好文档，值得你下载，教育，管理，论文，制度，方案手册， 应有尽有- - -ARITHMETIC VS. GEOMETRIC AVERAGES b45.Estimates using the arithmetic average will probably tend to _ values over the long-term while estimates using the geometric average will probably tend to _ values over the short-term

38、. a.overestimate; overestimate b.overestimate; underestimate c.underestimate; overestimate d.underestimate; underestimate e.accurately; accuratelyMARKET EFFICIENCY d46.In an efficient market, the price of a security will: a.always rise immediately upon the release of new information with no further

39、price adjustments related to that information. b.react to new information over a two-day period after which time no further price adjustments related to that information will occur. c.rise sharply when new information is first released and then decline to a new stable level by the following day. d.r

40、eact immediately to new information with no further price adjustments related to that information. e.be slow to react for the first few hours after new information is released allowing time for that information to be reviewed and analyzed.MARKET EFFICIENCY c47.If the financial markets are efficient,

41、 then investors should expect their investments in those markets to: a.earn extraordinary returns on a routine basis. b.generally have positive net present values. c.generally have zero net present values. d.produce arbitrage opportunities on a routine basis. e.produce negative returns on a routine

42、basis.MARKET EFFICIENCY d48.Which one of the following statements is correct concerning market efficiency? a.Real asset markets are more efficient than financial markets. b.If a market is efficient, arbitrage opportunities should be common. c.In an efficient market, some market participants will hav

43、e an advantage over others. d.A firm will generally receive a fair price when it sells shares of stock. e.New information will gradually be reflected in a stocks price to avoid any sudden change in the price of the stock.MARKET EFFICIENCY c49.Financial markets fluctuate daily because they: a.are ine

44、fficient. b.slowly react to new information. c.are continually reacting to new information. d.offer tremendous arbitrage opportunities.CHAPTER 12-精品 文档- -e.only reflect historical information.精品文档就在这里 -各类专业好文档，值得你下载，教育，管理，论文，制度，方案手册， 应有尽有- - -MARKET EFFICIENCY d50.Insider trading does not offer any advantages if the financial markets are: a.weak form efficient. b.semiweak-form efficient. c.semistrong-form efficient. d.strong-form effici