2023年青海金融英语考试考前冲刺卷（5）.docx

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1、2023年青海金融英语考试考前冲刺卷（5）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.An analyst does research about yield spread. All other factors being equal, will the yield spread for an option-free corporate bond over the benchmark bond most likely decrease:（）A.AB.BC.C2.Which of the

2、following theories of the term structure of interest rates makes the most direct link between the yield curve now and future short-term interest rates anticipated by investorsA. Pure expectations.B. Liquidity preference.C. Market segmentation.3.An investor is concerned about interest rate risk. Whic

3、h of the following bonds has the least interest rate risk The bond with:A. 5% yield and 10-year maturity.B. 5% yield and 15-year maturity.C. 6% yield and 10-year maturity.4.All else being equal, the floor on a floating-rate security is most likely to benefit the:A. issuer if interest rates fall.B. b

4、ondholder if interest rates fall.C. bondholder if interest rates rise.5.An analyst does research about the Z-spread and nominal spread. Assume the Treasury spot-rate yield curve is upward slopping, compared to the nominal yield spread between a Treasury bond and an option-free corporate bond of simi

5、lar maturity, Z-spread will be:A. less than the nominal spread.B. equal to the nominal spread.C. greater than the nominal spread.6.An analyst does research about return and risk. Given no major change in asset risk characteristics, will a decrease in the willingness of investors to accept risk typic

6、ally result in an increase in:（）A.AB.BC.C7.An analyst does research about bond evaluation. Each of the option-free bonds listed below has a par value of $1000: Bond 1 Bond 2 Time to maturity 12 years 11 years Annual coupon rate 6.0% 8.0% Discount rate today 7.5% 7.5% Which of the following statement

7、s about the two bonds is most accurate If the discount rate for each of the bonds remains at 7.5 percent for ten years, the passage of time will result in an increase in value for:A. Bond 1 only.B. Bond 2 only.C. both Bond 1 and Bond 2.8.An investor does research about annual return and standard dev

8、iation of returns, and is considering the purchase of two securities issued by different companies operating in different industries. Each security has an expected annual return of 10 percent and an expected standard deviation of retums of 18 percent. Regardless of the weights selected, will a portf

9、olio composed of the two securities most likeLy have an expected:()A.AB.BC.C9.A client exhibits an above-average willingness to take risk but a below-average ability to take risk. The investment adviser is most likely to assess the clients overall risk tolerance as:A. above average.B. average.C. bel

10、ow average.10.An analyst does research about efficient frontier curve. As an investor continues to assume more risk and moves upward on the efficient frontier, the slope of the efficient frontier curve:A. increase and incremental return per unit of risk decrease.B. decrease and incremental return pe

11、r unit of risk increases.C. decrease and incremental return per unit of risk decrease.11.With respect to the capital asset pricing model, should investors expect higher returns for accepting increasing amounts of:()A.AB.BC.C12.An analyst does research about correlations and gathered information abou

12、t three economic variables. He noted that whenever variable X increased by one unit, variable Y increased by 0.5 units but variable Z decreased by 0.5 units. The correlation between variables X and Y and the correlation between-variables X and Z, respectively, are closest to:()A.AB.BC.C13.Which one

13、of the following is NOT a characteristic of monopolistic competition ()A. Differentiated products.B. Elastic demand curvesC. A single seller.14.Which of the following embedded options most likely benefits the bondholde（）A. Interest rate cap on a floating-rate bond.B. Accelerated sinking fund provisi

14、on.C. Put provision at par on a bond that is trading at a premium.15.Whenever an investment management firm presents investment performance is compliance with the Global Investment Performance Standards (GIPS), it must start how it defines itself as a firm. Under GIPS, a firm may define itself for t

15、he purpose of claiming GIPS compliance using any of the following options EXCEPT when:()A. an entity is registered with the appropriate national regulatory authority overseeing the entity’s investment management activities.B. all assets are managed to one or more base currencies.C. the subsidi

16、ary or division of a company claims GIPS compliance when the parent company is GIPS compliant.16.Which of the following statements about the calculation of earnings per share (EPS) is least accurate.（）A. Other than for stock dividends and stock splits, shares issued enter into the computation from t

17、he date of issuance.B. Shares issued after a stock split must be adjusted for the split.C. Stock sold or issued in a purchase of assets is included from the date of issuance.17.Consider three corporate bonds that are identical in all respects except as noted: Bond F has $100 million face value outst

18、anding. On average, 200 bonds trade per day.Bond G has $ 300 million face value outstanding. On average, 200 bonds trade per day. Bond H has $100 million face value outstanding. On average, 500 bonds trade per day. Will the yield spreads to Treasuries of Bond G and Bond H be higher or lower than the

19、 yield spread to Treasuries of Bond FBond G Bond H （）A. Higher HigherB. Higher LowerC. Lower LowerA. B. C. 18.If a company can convince its suppliers to offer better terms on their products leading to a higher profit margin, the return on equity (ROE) will most likely:()A. decrease and the stock pri

20、ce will increase.B. decrease and the stock price will decline.C. increase and the stock price will increase19.A company issues $10 million in 8% annual,5 -year bonds, when the market rate is 8.25%. The initial balance sheet liability and liability one year from the date of issue are closest to: Init

21、ial liability Liability one year later （）A. B. C. 20.Determine the cash flow from financing given the following table.（）AItemBAmountCCash payment of dividendsD$30ESale of equipmentF$10GNet incomeH$25IPurchase of landJ$15KIncrease in accounts payableL$20MSate of preferred stockN$25OIncrease in deferr

22、ed taxesP$5QProfit on sale of equipmentR$1521.Which of the following statements concerning efficient markets and anomalies is the least likely to be correct（）A. Processing information has a cost and takes time, so some market participants may be rewarded for performing fundamental analysis if they a

23、ct quickly.B. Strategy risk refers to the fact that the model used to adjust for risk may not be correctly specified.C. The arbitrage required to exploit an anomaly may not be riskless because there is no guarantee that the price will return to fair value.22.A increase in inventory over a period of

24、time would be considered:（）A. use of cashB. adjusting entry.C. non-cash flow item.23.AlcoBanc owns a piece of property that is under consideration for a new bank branch. Which of the following is least likely a relevant incremental cash flow in analyzing a capital budgeting project The:（）A. interest

25、 costs of a loan for the property purchase.B. business gained at other branches due to new customers at the proposed site.C. loss of customers at alternative branches due to conducting business at the proposed site.24.Jo Su believes that there should be a negative relation between returns and system

26、atic risk. She intends to collect data on returns and systematic risk to test this theory. What is the appropriate alternative hypothesis（）A. Ha:ρ0.B. Ha:ρ0.C. Ha:ρ=0.25.Studies from which form(s) of the efficient market hypothesis (EMH) provide evidence that security prices adjust so qu

27、ickly to a public announcement that it is not possible for investors to realize significant abnormal returns after a public announcement has been made()A. semistrong-form of the EMH.B. weak-form of the EMHC. strong-form of the EMH26.Which of the following statements about the internal rate of return

28、 (IRR) and net present value (NPV) is least accurate（）A. The NPV method assumes that cash flows will be reinvested at the cost of capital, while the IRR method assumes that they are reinvested at the IRR.B. The IRR is the discount rate that equates the present value of the cash inflows with the pres

29、ent value of the outflows. C. For mutually exclusive projects, if the NPV rankings and the IRR rankings give conflicting signals, you should select the project with the higher IRR. 27.Alen Bishop earned the fight to use the CFA designation in September 1968. Alen recently retired from the investment

30、 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 (reti

31、red).C. I was awarded the CFA charter in 1968.28.An investor would most likely expect commodities to have correlations with traditional stock or bond investments and inflation, respectively, that are: Correlation with inflation Correlation with traditional stock or bond investments()A. positive posi

32、tiveB. positive negativeC. negative positive29.Tina Donaldson, CFA candidate, is studying yield volatility and the value of putable bonds. She has the following information: a putable bond with a put option value calculated at 0.75 (prices are quoted as a percent of par) and a straight bond similar

33、in all other aspects priced at 99.0. Donaldson also wants to determine how the bonds value will change if yield volatility decreases. Which of the following choices is closest to what Donaldson calculates as the value for the putable bond and correctly describes the bonds price behavior as yield vol

34、atility decreases()A. 99.75, price increasesB. 99.75, price decreasesC. 98.25, price decreases30.A company uses cash to pay off a short-term notes payable. If the companys current ratio before the transaction is 2.0 times and the quick ratio was 1.0 times, how would this transaction affect the compa

35、nys current, quick and debt ratios Current ratio Quick ratio Debt-to-equity ratio()A. Increase Increase DecreaseB. Decrease Decrease IncreaseC. Increase Remain unchanged Decrease31.A dance club purchased new sound equipment for $ 25352. It will work for 5 years and has no salvage value. Their tax ra

36、te is 41 percent, and their annual revenues are constant at $14384. For financial reporting, the straight-line depreciation method is used, but for tax purposes depreciation is accelerated to 35 percent in years 1 and 2 and 30 percent in Year 3. For purposes of this exercise ignore all expenses othe

37、r than depreciation. Assume that the tax rate changes for years 4 and 5 from 41 percent to 31 percent. What will be the deferred tax liability as of the end of year three()A. $3144.B. $2948.C. $1443.32.James McDonald and Veasna Lu were discussing different ways of valuing a Treasury security. During

38、 their discussion Lu made the following statements: Statement 1: It is inappropriate to discount the cash flows of a Treasury security by a single discount rate because that is implicitly assuming that the yield curve is flat. Therefore, each individual cash flow should be discounted by its correspo

39、nding spot rate. Statement 2: The spot rates used for different time periods that produce a value equal to the market price of a Treasury bond are called forward rates or future expected spot rates. Are the statements made by Lu regarding bond spot rates correct Statement 1 Statement 2 （）A. Correct

40、CorrectB. Incorrect IncorrectC. Correct IncorrectA. B. C. 33.Restless. corn has an 8% rate of interest on newly issued bonds. The firm has a return on equity of 13.33% and a dividend payout ratio of 40% ; the last dividend paid was $ 1.50, and the firms shares sell for $ 26. The stocks beta is 1.7,

41、the expected return on the market portfolio is 11%, and the risk-free rate of interest is 6%. If the appropriate risk premium relative to the bond yield is 5% for a dot-corn, estimate Restless. corns cost of equity capital using the bond yield plus risk premium (BY+RP), the dividend discount model (

42、DDM) and the capital asset pricing model (CAPM), respectively. The firm is in a 35% marginal tax bracket. BY+RP DDM CAPM （）A. 10.2% 14.2% 24.7%B. 10.2% 11.4% 13.5%C. 13.0% 14.2% 14.5%A. B. C. 34.If the inventory turnover ratio is 7, what is the average number of days the inventory is in stock（）A. 36

43、 days.B. 52 days.C. 25 days.35.Which one of the following is a change in an accounting principle（）A. A change from FIFO to LIFO.B. Recording a prior period adjustment.C. A change in the estimated service life of machinery.36.A three-year bond with a 10 percent annual coupon has cash flows of $100 at

44、 Year 1, $100 at Year 2, and pays the final coupon and the principal for a cash flow of $1100 at year 3. The spot rate for Year 1 is 5 percent, the spot rate for year 2 is 6 percent, and the spot rate for Year 3 is 6.5 percent. What is the arbitrage-free value of the bond（）A. $975.84.B. $1094. 87.C.

45、 $962.38.37.Consider two investors, Will Smythe and Katherine Banning, who desire to invest 100 percent of their available funds in the optimal risky portfolio. Smythe invests his money in a portfolio with an expected return of 14 percent and a standard deviation of 10 percent. Banning invests her f

46、unds in a portfolio with an expected return of 19 percent and a standard deviation of 12 percent. Which of the two investors has invested their funds in the optimal portfolio（）A. Smythe, since his portfolio has minimized total risk.B. Banning, since the expected return per unit of risk is higher for

47、 her investment.C. Both, since the optimal portfolio depends on an investor’s individual utility function.38.The number of ships in the harbor is an example of what kind of variable（）A. Discrete.B. Indiscrete.C. Continuous.39.If a firm uses the weighted average cost of capital (WACC) to discou

48、nt cash flows of higher than average risk projects, which one of the following will most likely occur（）A. Project NPVs will be understated.B. The overall risk of the firm’ s investments will rise over time.C. The WACC of the firm should fall over time.40.Consider a 1-year quarterly-pay $1000000 equity swap based on 90-day London Inter-bank Offered Rate (LIBOR)