2021金融英语考试考前冲刺卷（9）.docx

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1、2021金融英语考试考前冲刺卷（9）本卷共分为2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43题，每题2分。每题的备选项中，只有一个最符合题意） 1.Compared with the net present value (NPV) method, the internal rate of return (IRR) method of evaluating investment projects:()A. is the preferred method for evaluating mutually exclusive projects.B. is not

2、 sensitive to the pattern or timing of the cash flows from the period.C. assumes that all cash flows from the project will be reinvested at the computed IRR.2.What is the effect on the accounting equation when a companys Board of Directors declares a cash dividend（）A. Assets decrease and owners&rsqu

3、o; equity decreases.B. Liabilities increase and owners’ equity decreases.C. There is no effect on the accounting equation until the dividend is paid.3.An analyst is evaluating the two bonds below:Compared with bond A, bond B most likely will have:()A. less interest rate risk and more reinvestm

4、ent risk.B. less reinvestment risk and more interest rate risk.C. more interest rate risk and more reinvestment risk.4.An analyst is creating a new stock market index that is not affected by stock splits. The index the analyst is least likely to develop is:（）A. unweighted.B. price-weighted.C. value-

5、weighted.5.An analyst gathered the following information about two common stocks: variance of returns for the Company E=15.5 variance of returns for the Company F=22.3 covariance between returns of Company E and Company F = 8.65 The correlation coefficient between returns for the two common stocks i

6、s closest to:（）A. 0.025.B. 0.388.C. 0.465.6.According to the Global Investment Performance Standards (GIPS), which of the following is not a part of the verification process（）A. Verification to be undertaken by the firm’s compliance department.B. To test whether firm has complied with all the

7、composite construction requirements.C. To test whether the firm’s process and procedures are designed to calculate results in compliance with GIPS standards.7.For a firm in perfect competition, as output increases the marginal revenue will most likely:（）A. increase.B. decrease.C. remain consta

8、nt.8.The best characterization of a firm that is operating on its long-run average cost curve is when it:()A. experiences constant returns to scale.B. produces a given output at the least possible cost.C. chooses a plant size that minimizes the average fixed cost.9.An investment strategy that seeks

9、to grow portfolio value over time through capital gains and reinvestment of current income is most likely appropriate if the investment objective is:()A. total return.B. current income.C. capital appreciation.10.A reserve requirement of 20% implies a potential money deposit expansion multiplier of:(

10、)A. 5.B. 8.C. 10.11.A CFA charterholder agreed in writing with his former employer not to solicit former clients for a period of one year after his termination. After he left his former employer, he consulted with a lawyer about whether the agreement was legally enforceable. The lawyer advised that

11、it was doubtful that the agreement could be enforced, so the charterholder sent marketing brochures about his new firm to his former clients. According to the Standards of Practice Handbook, which of the following statements is most accurate with respect to the charterholders conduct（）A. The Standar

12、ds do not apply to the charterholder’s conduct.B. The Standards require the charterholder to comply with the agreement with his former employer.C. Because the charterholder relied upon the opinion of legal counsel, he did not violate the Standards.12.Which embedded option is most beneficial to

13、 a bond issuer（）A. A conversion option.B. A floor on a floating rate bond.C. An accelerated sinking fund provision.13.An analyst is evaluating various debt securities issued by a company. The type of security that is most likely to yield the lowest recovery in a bankruptcy is a:（）A. mortgage bond.B.

14、 debenture bond.C. collateral trust bond.14.An investor goes long an FRA that expires in 30 days for which the underlying is 90-day LIBOR for a notional of $10 million. A dealer quotes this instrument at 4.5 percent. At expiration, 60-day LIBOR is 3.5 percent and 90-day LIBOR is 4 percent. The payme

15、nt made at expiration is closest to:()A. $12 376 from the investor to the dealer.B. $12 376 from the dealer to the investor.C. $16 570 from the investor to the dealer.15.A company using the LIFO inventory method reports a LIFO reserve at year-end of $85 000, which is $20 000 lower than the prior yea

16、r. If the company had used FIFO instead of LIFO in that year, the companys financial statements would have reported:（）A. a lower cost of goods sold, but a higher inventory balance.B. a higher cost of goods sold, but a lower inventory balance.C. both a higher cost of goods sold and a higher inventory

17、 balance.16.A fixed income portfolio manager owns a $5 million par value noncallable bond. The bonds duration is 5.6 and the current market value is $5125000. The dollar duration of the bond is closest to:（）A. $280000.B. $287000.C. $700000.17.David Schmidt enrolled to take the Level CFA examination

18、in the current year; however, he did not take the exam. Subsequently, he registered to take the level exam the next year. Schmidt informed his employer that he passed Level . Which CFA Institute Standard of Professional Conduct did Schmidt most likely violate（）A. Duties to employer.B. Professional m

19、isconduct.C. Referencing candidacy in the CFA program.18.Ian OSullivan, CFA, is the owner and sole employee of two companies, a public relations firm and a financial research firm. The public relations firm entered into a contract with Mallory Enterprises to provide public relations services. Accord

20、ing to the contract, OSullivan received 40 000 shares of Mallory stock in payment for his services. Over the next 10 days, the public relations firm issued several press releases that discussed Mallorys excellent growth prospects. OSullivan, through his financial research firm, also published a rese

21、arch report recommending Mallorys stock as a buy. According to the Standards of Practice Handbook, OSullivan is required to disclose his ownership of Mallorys stock in the:（）A. press releases only.B. research report only.C. both the press releases and the research report.19.When preparing pro forma

22、income statements, which one of the following items is least likely to be sales driven（）A. Current assets.B. Interest expense.C. Administrative expenses.20.An analyst gathers the following information about three equipment sales that a company made at the end of the year:（）A$30000B$40000C$5000021.A

23、European based company follows IFRS (International Financial Reporting Standards) and capitalizes new product development costs. During 2009 they spent €25million on new product development and reported an amortization expense related to a prior year’s new product development of €10m

24、illion. Other information related to 2009 is as follows:An analyst would like to compare the European company to a similar U. S. based company and has decided to adjust their financial statements to U.S. GAAP. Under U. S. GAAP, and ignoring tax effects, the cash flow from operations (€million)

25、for the company would be closest to:（）A. 265.B. 275.C. 290.22.An analyst has been hired to evaluate a high-risk project. The analyst estimates the probability that the project will fail in the first year as well as the conditional probability of failure for each of the remaining four years of the pr

26、oject, as follows:()A$2406B$2506C$140623.An analyst gathered the following information for a company whose common stock is currently priced at $40 per share:（）A26.5B1.16C25.624.Matthew Smith, CFA, was recently promoted to senior portfolio manager. In his new position, Smith is required to supervise

27、three portfolio managers. Smith asks for a copy of his firms written supervisory policies and procedures, but is advised that no such policies are required by regulatory standards in the country where Smiths firm conducts the majority of its business. According to the Standards of Practice Handbook,

28、 Smiths most appropriate course of action would be to:（）A. require that his firm adopted the CFA Institute Code of Ethics and Standards of Professional Conduct.B. require that the employees he supervises adopt the CFA Institute Code of Ethics and Standards of Professional Conduct.C. decline to accep

29、t supervisory responsibility until his firm adopts procedures to allow him to adequately exercise such responsibility.25.Darcy Grafton, CFA, purchases a large block of stock on behalf of specific accounts she managed. The stock realized a significant gain in value before the close of business; so Gr

30、afton reviewed her accounts again to determine where the block shares should be allocated. According to the Standards of Practice Handbook, Graftons most appropriate action is to allocate the shares to:()Aall accounts equally.Ball accounts for which she has discretionary authority.Conly those accoun

31、ts for which the block shares were originally intended.26.Which one of the following independent situations would most likely be of the greatest concern to an investor when reviewing a potential investments corporate governance practices and policies（）A. Without obtaining prior management approval,

32、the board hired external consultants to advise them about recent environmental legislative changes related to the company.B. As part of his compensation package, one director received a bonus for identifying a potential merger candidate. The company is currently negotiating a merger with that compan

33、y.C. One of the directors is the president of a major supplier to the company, but he recuses himself from board decisions related to the products his company supplies.27.The belief that money wage rates are sticky is least likely to be associated with:（）A. classical macroeconomics.B. monetarist mac

34、roeconomics.C. Keynesian macroeconomics.28.An analyst gathers the following information about a company:Ashares of common stock outstandingB1000000Cnet income for the yearD$1500000Epar value of convertible bonds with a 4 percent coupon rateF$10000000Gpar value of cumulative preferred stock with a 7

35、percent dividend rateH$2000000Itax rateJ30% 29.An analyst is estimating the cost of capital for her firm. She has estimated the before-tax costs of the current sources of capital to be 8 percent of debt and 9 percent for equity, If the firms marginal tax rate is 40 percent, the costs of debt and equ

36、ity she could use in her calculation are closest to:()A. 4.8% for debt and 5.4% for equity.B. 4.8% for debt and 9.0% for equity.C. 8.0% for debt and 5.4% for equity.30.A U. S. investor has purchased a tax-exempt 5-year municipal bond at a yield of 3.86 percent which is 100 basis points less than the

37、 yield on a 5-year option-free U. S. Treasury. If the investors marginal tax rate is 32 percent, then the yield ratio is closest to:()A. 0.79.B. 1.26.C. 3.68.31.The mean and standard deviation of the net incomes for all companies making up a stock index is $ 3.5 million and $ 4. 2 million, respectiv

38、ely. If a random sample of 49 companies is taken from the index, the standard error of the sample mean is closet to:（）A. $85714.B. $500000.C. $600000.32.In a regulated industry, the introduction of a marginal cost pricing rule that maximizes total surplus is most likely to be viewed as:（）A. efficien

39、t but leaves the natural monopoly incurring an economic loss.B. efficient and allows the natural monopoly incurring an economic gain.C. inefficient and leaves the natural monopoly incurring an economic loss.33.An asset manager, a CFA charterholder, manages small-cap portfolios for institutional clie

40、nts. The manager is convinced, given the deteriorating economic conditions, that as a group, small-cap equities will underperform during the next 12 months. To preserve her clients wealth, the manager buys large-cap equities that he believes are better positioned to weather the expected economic dow

41、nturn. The manager provides complete disclosure of these trades to his clients after the purchase. Has the manager violated any CFA Institute Standards of Professional Conduct()A. No.B. Yes, relating to suitability.C. Yes, relating to misconduct.34.The difference between nominal spread and zero-vola

42、tility spread will most likely be the greatest for a mortgage-backed security:（）A. in an inverted yield curve environment.B. in a steep upward-sloping yield curve environment.C. with short maturity in a flat yield curve environment.35.A large manufacturing company is in a competitive industry. It ha

43、s above-average investment opportunities and its return on investments has been above the required rate of return. The firm retains a large portion of earnings to fund its superior investment projects. The company is best characterized as a.（）A. growth company.B. cyclical company.C. speculative comp

44、any.36.An important reason for constructing an investment policy statement is that it:()A. minimizes the costs of portfolio construction.B. ensures that managers outperform the performance benchmark.C. includes a performance benchmark to judge manager performance.37.A CFA candidate, who is an invest

45、ment bank equity analyst writes a research report on an oil company recommending a buy. After reviewing the report and not seeing any disclosures a pension fund manager asks the analyst if the investment bank is currently undertaking any corporate finance activity with this oil company. The analyst

46、does not mention or include in the research report, that he is related to the majority shareholder of the investment bank and that he owns shares in the oil company. According to the Standards of Practice Handbook, the analyst is least likely to have violated the CFA Institute Standards of Professio

47、nal Conduct that relates to:（）A. disclosure of conflicts.B. independence and objectivity.C. additional compensation arrangements.38.According to International Financial Reporting Standards, which of the following is one of the conditions that must be met for revenue recognition to occur（）A. Costs ca

48、n be reliably measured.B. Payments has been partially received.C. Goods have been delivered to the customer.39.An 8 percent coupon bond with a par value of $100 matures in 6 years and is selling at $95.51 with a yield of 9 percent. One year ago this bond sold at a price of $90.26 with a yield of 10 percent. The bond pays annual interest. The change in price attributable to the change in ma