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1. Quantitative Methods 97 missing
Question # Reading Question Text Preview Status Actions
7 Reading 1 Multiple Regression Consider the following estimated regression equation, with calculated t-statistics of the estimates ... unattempted View Detail
8 Reading 1 Multiple Regression Henry Hilton, CFA, is undertaking an analysis of the bicycle industry. He hypothesizes that bicycle ... unattempted View Detail
10 Reading 1 Multiple Regression Consider the following estimated regression equation: AUTOt = 10.0 + 1.25 PIt + 1.0 TEENt – 2.0 INSt... unattempted View Detail
17 Reading 1 Multiple Regression What is the expected salary (in $1,000) of a woman with 16 years of education and 10 years of experi... unattempted View Detail
18 Reading 1 Multiple Regression If the return on the industry index is 4%, the stock's expected return would be: unattempted View Detail
19 Reading 1 Multiple Regression The percentage of the variation in the stock return explained by the variation in the industry index... unattempted View Detail
23 Reading 1 Multiple Regression Assume that in a particular multiple regression model, it is determined that the error terms are unc... unattempted View Detail
24 Reading 1 Multiple Regression The adjusted R2 of Model 2 is closest to: unattempted View Detail
26 Reading 1 Multiple Regression The F-statistic for testing H0: coefficient of LIQ = 0 versus Ha: coefficient of LIQ ≠ 0 is closest ... unattempted View Detail
27 Reading 1 Multiple Regression What is the predicted return for a stock using Model 1 when SMB = 3.30, HML = 1.25 and Rm-Rf = 5? unattempted View Detail
32 Reading 1 Multiple Regression If GDP rises 2.2% and the price of fuels falls $0.15, Baltz's model will predict Company sales to be... unattempted View Detail
39 Reading 1 Multiple Regression Assuming that next year's marketing expenditures are $3,500,000 and there are five salespeople, pred... unattempted View Detail
41 Reading 1 Multiple Regression Using the regression model developed, the closest prediction of sales for December 20x6 is: unattempted View Detail
45 Reading 1 Multiple Regression The regression statistics above indicate that for the period under study, the independent variables ... unattempted View Detail
49 Reading 1 Multiple Regression Which of the following is most likely to indicate that two or more of the independent variables, or ... unattempted View Detail
56 Reading 1 Multiple Regression According to the model and the data for the Chicago metropolitan area, the forecast of generator sal... unattempted View Detail
62 Reading 1 Multiple Regression The management of a large restaurant chain believes that revenue growth is dependent upon the month ... unattempted View Detail
63 Reading 1 Multiple Regression The percentage of the total variation in quarterly stock returns explained by the independent variab... unattempted View Detail
65 Reading 1 Multiple Regression What is the predicted quarterly stock return, given the following forecasts? Employment growth = 2.0... unattempted View Detail
66 Reading 1 Multiple Regression Assuming a restricted model with all three variables removed and a 5% level of significance, the mos... unattempted View Detail
67 Reading 1 Multiple Regression Consider the following estimated regression equation: Salesi = 10.0 + 1.25 R&Di + 1.0 ADVi − 2.0 COM... unattempted View Detail
72 Reading 1 Multiple Regression Based upon the information presented in the ANOVA table, what is the coefficient of determination? unattempted View Detail
74 Reading 1 Multiple Regression Carter realizes that although regression analysis is a useful tool when analyzing investments, there... unattempted View Detail
76 Reading 1 Multiple Regression Which of the following statements most accurately interprets the following regression results at the... unattempted View Detail
77 Reading 1 Multiple Regression A high-yield bond analyst is trying to develop an equation using financial ratios to estimate the pr... unattempted View Detail
79 Reading 1 Multiple Regression An analyst is estimating whether company sales is related to three economic variables. The regressio... unattempted View Detail
80 Reading 1 Multiple Regression Consider the following estimated regression equation, with the standard errors of the slope coeffici... unattempted View Detail
81 Reading 1 Multiple Regression Consider the following regression equation: Salesi = 20.5 + 1.5 R&Di + 2.5 ADVi – 3.0 COMPi where Sa... unattempted View Detail
82 Reading 1 Multiple Regression Which of the following questions is least likely answered by using a qualitative dependent variable? unattempted View Detail
84 Reading 1 Multiple Regression May Jones estimated a regression that produced the following analysis of variance (ANOV unattempted View Detail
85 Reading 1 Multiple Regression If the number of analysts on NGR Corp. were to double to 4, the change in the forecast of NGR would ... unattempted View Detail
87 Reading 1 Multiple Regression What is the F-statistic for the hypothesis that all slope coefficients are not statistically signifi... unattempted View Detail
88 Reading 1 Multiple Regression Upon further analysis, Turner concludes that multicollinearity is a problem. What might have prompte... unattempted View Detail
91 Reading 1 Multiple Regression Using the regression model represented in Exhibit 1, what is the predicted number of housing starts ... unattempted View Detail
96 Reading 1 Multiple Regression Suppose the Breusch-Godfrey statistic is 3.22. At a 5% level of significance, which of the following... unattempted View Detail
97 Reading 1 Multiple Regression Gloucester subsequently revises the model to exclude the small cap index and finds that the revised ... unattempted View Detail
99 Reading 1 Multiple Regression In the month of January, if both the small and large capitalization index have a zero return, we wou... unattempted View Detail
100 Reading 1 Multiple Regression Assuming (for this question only) that the F-test was significant but that the t-tests of the indepe... unattempted View Detail
103 Reading 1 Multiple Regression Which of the following is the least appropriate statement in relation to R-square and adjusted R-squ... unattempted View Detail
106 Reading 1 Multiple Regression Consider the following regression equation: Salesi = 10.0 + 1.25 R&Di + 1.0 ADVi – 2.0 COMPi + 8.0 C... unattempted View Detail
107 Reading 1 Multiple Regression Concerning the assumptions of multiple regression, Grimbles is: unattempted View Detail
109 Reading 1 Multiple Regression The multiple regression, as specified, most likely suffers from: unattempted View Detail
110 Reading 1 Multiple Regression Jacob Warner, CFA, is evaluating a regression analysis recently published in a trade journal that hy... unattempted View Detail
111 Reading 1 Multiple Regression The predicted price of a house that has 2,000 square feet of space and 4 bedrooms is closest to: unattempted View Detail
116 Reading 1 Multiple Regression What can be said of the overall explanatory power of the model at the 5% significance? unattempted View Detail
121 Reading 1 Multiple Regression Salve runs a regression using the squared residuals from the model using the original dependent vari... unattempted View Detail
124 Reading 1 Multiple Regression Should Salve be concerned about residual multicollinearity? unattempted View Detail
127 Reading 1 Multiple Regression An analyst is trying to estimate the beta for a fund. The analyst estimates a regression equation in... unattempted View Detail
134 Reading 1 Multiple Regression If Mercado determines that Model TWO is the appropriate specification, then he is essentially saying... unattempted View Detail
135 Reading 1 Multiple Regression Using the regression model developed, the closest prediction of sales for December 20X6 is: unattempted View Detail
138 Reading 1 Multiple Regression The regression statistics indicate that for the period under study, the independent variables (housi... unattempted View Detail
139 Reading 1 Multiple Regression For this question only, assume that the regression of squared residuals on the independent variables... unattempted View Detail
2 Reading 2 Time-Series Analysis The model xt = b0 + b1 xt − 1 + b2 xt − 2 + b3 xt −12 + εt is an autoregressive model of type: unattempted View Detail
3 Reading 2 Time-Series Analysis An AR(1) autoregressive time series model: unattempted View Detail
6 Reading 2 Time-Series Analysis The procedure for determining the structure of an autoregressive model is: unattempted View Detail
10 Reading 2 Time-Series Analysis What is the forecast for the gross margin in the first quarter of 2004? unattempted View Detail
11 Reading 2 Time-Series Analysis With respect to heteroskedasticity in the model, we can definitively say: unattempted View Detail
14 Reading 2 Time-Series Analysis Which of the following is a seasonally adjusted model? unattempted View Detail
24 Reading 2 Time-Series Analysis The main reason why financial and time series intrinsically exhibit some form of nonstationarity is ... unattempted View Detail
32 Reading 2 Time-Series Analysis For this question only, assume that Winston also ran an AR(1) model with the following results: yt =... unattempted View Detail
33 Reading 2 Time-Series Analysis Based on the autoregressive model, expected warranty expense in the first quarter of 2005 will be cl... unattempted View Detail
35 Reading 2 Time-Series Analysis After discussing the above matter with a colleague, Cranwell finally decides to use an autoregressiv... unattempted View Detail
42 Reading 2 Time-Series Analysis The mean reverting level of monthly sales is closest to: unattempted View Detail
43 Reading 2 Time-Series Analysis Morris concludes that the current price of Car-tel stock is consistent with single stage constant gr... unattempted View Detail
45 Reading 2 Time-Series Analysis The value that Johnson should enter in the table in place of "w" is: unattempted View Detail
46 Reading 2 Time-Series Analysis Imagine that Johnson prepares a change-in-sales regression analysis model with seasonality, which in... unattempted View Detail
50 Reading 2 Time-Series Analysis Suppose you estimate the following model of residuals from an autoregressive model: εt 2 = 0.25 + 0.... unattempted View Detail
53 Reading 2 Time-Series Analysis Based on her regression results in Exhibit 2, using a 5% level of significance, Smith should conclud... unattempted View Detail
54 Reading 2 Time-Series Analysis The standard error of estimate for Smith's regression is closest to: unattempted View Detail
58 Reading 2 Time-Series Analysis Suppose you estimate the following model of residuals from an autoregressive model: εt 2 = 0.4 + 0.8... unattempted View Detail
61 Reading 2 Time-Series Analysis Given an AR(1) process represented by xt+1 = b0 + b1×xt + et, the process would not be a random walk... unattempted View Detail
62 Reading 2 Time-Series Analysis David Wellington, CFA, has estimated the following log-linear trend model: LN(xt) = b0 + b1t + εt. U... unattempted View Detail
64 Reading 2 Time-Series Analysis Are either of the slope coefficients statistically significant? unattempted View Detail
66 Reading 2 Time-Series Analysis Using the simple linear trend model, the forecast of sales for Very Vegan for the first out-of- samp... unattempted View Detail
67 Reading 2 Time-Series Analysis Using the log-linear trend model, the forecast of sales for Very Vegan for the first out-of- sample ... unattempted View Detail
71 Reading 2 Time-Series Analysis Suppose that the time series designated as Y is mean reverting. If Yt+1 = 0.2 + 0.6 Yt, the best pre... unattempted View Detail
72 Reading 2 Time-Series Analysis The data below yields the following AR(1) specification: xt = 0.9 – 0.55xt-1 + Et , and the indicate... unattempted View Detail
73 Reading 2 Time-Series Analysis Consider the estimated model xt = -6.0 + 1.1 xt-1 + 0.3 xt-2 + εt that is estimated over 50 periods.... unattempted View Detail
74 Reading 2 Time-Series Analysis Which of the following statements regarding seasonality is least accurate? unattempted View Detail
78 Reading 2 Time-Series Analysis Alexis Popov, CFA, is analyzing monthly data. Popov has estimated the model xt = b0 + b1 × xt-1 + b2... unattempted View Detail
80 Reading 2 Time-Series Analysis Suppose that the following time-series model is found to have a unit root: Salest = b0 + b1 Sales t-... unattempted View Detail
82 Reading 2 Time-Series Analysis How many dummy variables should Rathod use? unattempted View Detail
84 Reading 2 Time-Series Analysis What can be said of the overall explanatory power of the model at the 5% significance? unattempted View Detail
89 Reading 2 Time-Series Analysis Which of the following statements regarding an out-of-sample forecast is least accurate? unattempted View Detail
90 Reading 2 Time-Series Analysis The regression results from fitting an AR(1) to a monthly time series are presented below. What is t... unattempted View Detail
91 Reading 2 Time-Series Analysis Consider the estimated model xt = −6.0 + 1.1 xt − 1 + 0.3 xt − 2 + εt that is estimated over 50 peri... unattempted View Detail
93 Reading 2 Time-Series Analysis If his assumption about a constant is correct, which of the following models is most appropriate for... unattempted View Detail
96 Reading 2 Time-Series Analysis Bert would also like to test for serial correlation in his AR(1) model. How could this be done? unattempted View Detail
98 Reading 2 Time-Series Analysis Bert would like to use his AR(1) model to forecast future sales of luxury automobiles. What is the a... unattempted View Detail
99 Reading 2 Time-Series Analysis Which of the following statements regarding covariance stationarity is CORRECT? unattempted View Detail
5 Reading 3 Machine Learning Tan is interested in applying neural networks, deep learning nets, and reinforcement learning to her... unattempted View Detail
16 Reading 3 Machine Learning Which of the following statements Nowak makes about hierarchical clustering is most accurate? unattempted View Detail
1 Reading 4 Big Data Projects Which of the following uses of data is most accurately described as curation? unattempted View Detail
3 Reading 4 Big Data Projects Karlsson is especially concerned about the possibility that her model may indicate that a bond will ... unattempted View Detail
4 Reading 4 Big Data Projects Karlsson would like to gain a sense of her model's overall performance. In her research, Karlsson le... unattempted View Detail
5 Reading 4 Big Data Projects Karlsson also learns of the model measure of accuracy. Based on Exhibit 1, Karlsson's model's accura... unattempted View Detail
11 Reading 4 Big Data Projects When evaluating the fit of a machine learning algorithm, it is most accurate to state that: unattempted View Detail
10. Ethical and Professional Standards 36 missing
Question # Reading Question Text Preview Status Actions
4 Reading 42.5 Standards of Professional Conduct Guidance for Standards V According to the CFA Institute's Standards of Professional Conduct, Fleming's execution of Waverly's... incorrect View Detail
26 Reading 42.5 Standards of Professional Conduct Guidance for Standards V In order to remain an active member of CFA Institute, Jones must annually: unattempted View Detail
37 Reading 42.5 Standards of Professional Conduct Guidance for Standards V An analyst writes a report and includes the forecasts of an econometric model developed by the firm'... unattempted View Detail
1 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI The following scenarios refer to two analysts who are employed at Global Securities, a large brokera... unattempted View Detail
2 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI A firm produces regular proprietary research reports on various companies. According to Standard VI(... unattempted View Detail
3 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Futura Investments Co. decides to diversify its current portfolio with stocks from three companies i... unattempted View Detail
4 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Arthur Harrow, CFA, is a pharmaceuticals analyst at Dominion Asset Management. His supervisor direct... unattempted View Detail
6 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Abner Flome, CFA, is writing a research report on Paulsen Group, an investment advisory firm. Flome'... unattempted View Detail
7 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Wes Smith, CFA, refers many of his clients to Bill Towers, CPA, for accounting services. In return, ... unattempted View Detail
9 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Regarding their research reports, which of the following statements about Linstrom and Wadel's condu... unattempted View Detail
10 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI What is the obligation, if any, to disclose Wadel's arrangement with Black? unattempted View Detail
11 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI According to the Standards, how must Platt deal with the intern's alleged illegal activity? unattempted View Detail
12 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Platt is renouncing her U.S. citizenship and becoming a citizen of Xania. According to the Standards... unattempted View Detail
13 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI An analyst likes to trade commodity futures in her own account. She does not deem any of her client ... unattempted View Detail
15 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Steve Copper has worked as an independent consultant for the past ten years advising companies on va... unattempted View Detail
17 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Standard VI(A), Disclosures of Conflicts, requires Pennington to disclose all matters, including ben... unattempted View Detail
18 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Which of the following best describes Pennington's compliance with the CFA Institute Standards regar... unattempted View Detail
20 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Standard VI(B), Priority of Transactions, applies to transactions an analyst takes on behalf of: unattempted View Detail
21 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI An analyst, who is a CFA Institute member, manages a high-grade bond mutual fund. This is his only p... unattempted View Detail
22 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI An analyst has the opportunity to offer his clients shares in a "hot new issue." One of the analyst'... unattempted View Detail
23 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Phil Trobb, CFA, is preparing a purchase recommendation on Aneas Lumber for his research firm. Which... unattempted View Detail
24 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Gordon McKinney, CFA, works in the trust department of a bank. The bank's trust account holds a larg... unattempted View Detail
25 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Is it likely that Myers violated any CFA Institute Standards of Professional Conduct with respect to... unattempted View Detail
26 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Is it likely that Myers violated any CFA Institute Standards of Professional Conduct by selling the ... unattempted View Detail
28 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Which of the following least accurately describes Harrison's actions necessary for compliance with t... unattempted View Detail
29 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Jim Taylor works as a portfolio manager for Rose Capital and also serves as president of the Little ... unattempted View Detail
30 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Will Lambert, CFA, is a financial analyst for Offshore Investments. He is preparing a purchase recom... unattempted View Detail
31 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Toni Florence, CFA, CAIA, leases office space to her best friend, Tom Rigs. Florence is an independe... unattempted View Detail
34 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Hartsburg's efforts to help Voltaire pass the CFA exam: unattempted View Detail
35 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI With respect to the allegation that Voltaire is front-running research recommendations, Hartsburg's ... unattempted View Detail
37 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Dwight Dawson, a CFA charterholder and portfolio manager at Ascott Investments, was recently appoint... unattempted View Detail
39 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Harry Lee, CFA, is an equity research analyst for a long-term investment fund. His annual bonus is l... unattempted View Detail
40 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI If a CFA charterholder receives a referral fee, he must: unattempted View Detail
41 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Standard VI(C), Referral Fees, requires the member to do all of the following EXCEPT: unattempted View Detail
42 Reading 42.6 Standards of Professional Conduct Guidance for Standards VI Rochester Frankfurt is a market maker in the stock of Byrne Brands, Inc. The chairman of Rochester F... unattempted View Detail
3 Reading 42.7 Standards of Professional Conduct Guidance for Standards VII Anderson, Baker and Chang all received their CFA charters and ordered new business cards. Their busi... incorrect View Detail
2. Economics 29 missing
Question # Reading Question Text Preview Status Actions
1 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value A bank in Canada is quoting CAD/USD 1.4950 − 1.5005, and USD/EUR 0.9350 − 0.9400. What is bid/ask ex... unattempted View Detail
6 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value Which of the following statements regarding purchasing power parity (PPP) is least accurate? unattempted View Detail
9 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value Given spot exchange rate of CAD/EUR 1.425-1.435, The spread is closest to: unattempted View Detail
10 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value The no-arbitrage one-year forward USD/EUR rate is closest to: unattempted View Detail
19 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value Assume that the domestic nominal rate of return is 4% and the foreign nominal rate of return is 5%. ... unattempted View Detail
21 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value Terrance Burnhart, a junior analyst at Wertheim Investments Inc., was discussing the concepts of pur... unattempted View Detail
22 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value The domestic interest rate is 9% and the foreign interest rate is 7%. If the forward exchange rate i... unattempted View Detail
24 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value Given the following information, what is the forward exchange rate implied by interest rate parity? ... unattempted View Detail
26 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value The current mark-to-market value of the EUR forward contract is closest to: unattempted View Detail
28 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value Based on the Mundell-Fleming model, relative to the USD, the INR would most likely: unattempted View Detail
29 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value Under the portfolio balance approach to exchange rate determination, relative to USD, INR would most... unattempted View Detail
30 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value Donna Ackerman, CFA, is an analyst in the currency trading department at State Bank. Ackerman is tra... unattempted View Detail
32 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value An investor has entered into a 90-day forward contract to purchase 2 million GBP at an all-in rate o... unattempted View Detail
33 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value Which of the following is least likely a warning sign of an impending currency crisis? unattempted View Detail
38 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value Ackerman explains to Bos that a theoretical relationship exists between forward rates and future spo... unattempted View Detail
41 Reading 5 Currency Exchange Rates - Understanding Equilibrium Value Ashok Jain is assessing the currency value of Lutina. Jain believes that prices are sticky in the sh... unattempted View Detail
3 Reading 6 Economic Growth The evidence that supports the club convergence hypothesis includes, Cragistan's and West Lundia's: unattempted View Detail
4 Reading 6 Economic Growth If in Kurtenstein the growth in earnings relative to GDP is 0.50% and the growth of price-to- earnin... unattempted View Detail
23 Reading 6 Economic Growth Which of the following statements regarding the long-run rate of stock market appreciation and the s... unattempted View Detail
27 Reading 6 Economic Growth Which of the following factors is most likely to contribute to a failure of the conditional converge... unattempted View Detail
30 Reading 6 Economic Growth Hemali is an emerging market economy where labor's share of GDP is 60%. The long-term trend of labor... unattempted View Detail
31 Reading 6 Economic Growth Ruritania and Utopia are two emerging market economies for which Jon Gordon, CFA, calculated a poten... unattempted View Detail
3 Reading 7 Economics of Regulation "Net regulatory burden" is best defined as: unattempted View Detail
4 Reading 7 Economics of Regulation Which of the following regulatory interventions is theoretically least effective? unattempted View Detail
8 Reading 7 Economics of Regulation Which of the following organizations is most likely to face conflict of interest issues? unattempted View Detail
11 Reading 7 Economics of Regulation Which of the following statements is most likely correct regarding the approach a government typical... unattempted View Detail
12 Reading 7 Economics of Regulation Regulations are least likely needed under which of the following situations: unattempted View Detail
13 Reading 7 Economics of Regulation Which of the following statements is most accurate regarding the regulation of security markets? unattempted View Detail
19 Reading 7 Economics of Regulation Which industry could possibly benefit from Calisto's regulatory changes? unattempted View Detail
3. Financial Statement Analysis 65 missing
Question # Reading Question Text Preview Status Actions
52 Reading 10 Multinational Operations As Heltzel is translating the balance sheet and income statement, which of the following are closest... unattempted View Detail
55 Reading 10 Multinational Operations Which of the following statements regarding the treatment of subsidiaries in a hyper- inflationary e... unattempted View Detail
58 Reading 10 Multinational Operations Jameson must also determine how the fluctuation in the yen vs. the dollar has affected Kasamatsu's e... unattempted View Detail
61 Reading 10 Multinational Operations Sycamore Systems sold $5 million worth of software on December 1, 20X1 to a Japanese company with pa... unattempted View Detail
62 Reading 10 Multinational Operations Which of the following statements regarding foreign currency translation are least accurate? Under t... unattempted View Detail
66 Reading 10 Multinational Operations Revenues for 2001 translated into U.S. dollars amount to: unattempted View Detail
67 Reading 10 Multinational Operations Which of the following statements is NOT a characteristic of the current rate method of accounting f... unattempted View Detail
68 Reading 10 Multinational Operations On APJ's 2012 income statement, the level of sales in U.S. dollars would be closest to: unattempted View Detail
69 Reading 10 Multinational Operations On APJ's 2012 balance sheet, the level of accounts receivable is U.S. dollars would be closest to: unattempted View Detail
71 Reading 10 Multinational Operations If the functional currency is the reporting currency, the exposure and the foreign currency movement... unattempted View Detail
73 Reading 10 Multinational Operations Sopgate is a manufacturer of branded fast moving consumer goods having business operations in 28 cou... unattempted View Detail
78 Reading 10 Multinational Operations Edmonton Oilfield Supply has made an equipment sale in Venezuela in the amount of VEF 15,000,000. On... unattempted View Detail
81 Reading 10 Multinational Operations The value of December 31, 20X6, gross property, plant, and equipment reported in USD is: unattempted View Detail
82 Reading 10 Multinational Operations The value of December 31, 20X6, inventory reported in USD is: unattempted View Detail
83 Reading 10 Multinational Operations The value of all financing debt (notes payable, current portion of long-term debt, and long- term de... unattempted View Detail
87 Reading 10 Multinational Operations A Canadian firm owns a foreign subsidiary in the U.S. In 2002, sales were USD1,000,000 and the USD/C... unattempted View Detail
88 Reading 10 Multinational Operations Which of the following statements is least accurate regarding the use of the temporal method for for... unattempted View Detail
91 Reading 10 Multinational Operations Which of the following general statements is most accurate with respect to the temporal method? Nonm... unattempted View Detail
93 Reading 10 Multinational Operations At what exchange rate are revenues and accounts receivable translated under the current rate method?... unattempted View Detail
95 Reading 10 Multinational Operations What is the amount of income Seven Seas should report from its South Seas subsidiary? unattempted View Detail
96 Reading 10 Multinational Operations The currency translation adjustment that results from the translation of South Sea's data is closest... unattempted View Detail
97 Reading 10 Multinational Operations If the temporal method is used, the retaining earnings is closest to: unattempted View Detail
98 Reading 10 Multinational Operations If the functional currency is the USD, then the net income before a translation gain/loss is closest... unattempted View Detail
99 Reading 10 Multinational Operations Global International Corp. (GI unattempted View Detail
100 Reading 10 Multinational Operations Jameson would like to examine WB's group accounts. What is the most appropriate exchange rate (yen/$... unattempted View Detail
101 Reading 10 Multinational Operations If Jameson wishes to convert any of the figures on Kasamatsu's Income Statement from yen to dollars,... unattempted View Detail
102 Reading 10 Multinational Operations Jameson has finally completed translating all the necessary figures into dollars and now wants to co... unattempted View Detail
104 Reading 10 Multinational Operations Which of the following subsidiary ratios will be affected by the translation adjustment under the cu... unattempted View Detail
115 Reading 10 Multinational Operations The Herlitzka Company, a U.S. multinational firm, has a 100% stake in a Swiss subsidiary. The Swiss ... unattempted View Detail
118 Reading 10 Multinational Operations Which of the following statements regarding the effects of translation on financial statement items/... unattempted View Detail
119 Reading 10 Multinational Operations Which translation method should be used under a hyperinflationary economy when using U.S. GAAP? unattempted View Detail
120 Reading 10 Multinational Operations Under the current rate method, common stock is translated by using the: unattempted View Detail
123 Reading 10 Multinational Operations Which of the following statements regarding the functional currency under US GAAP is least accurate? unattempted View Detail
12 Reading 12 Evaluating Quality of Financial Reports De Freitas Inc. (De Freitas) is a conglomerate. Its computer division was very profitable in the cur... incorrect View Detail
3 Reading 14 Financial Statement Modeling Kerry Winstone covers TVStream Inc., a U.S. based company offering streaming video. She has carried ... unattempted View Detail
5 Reading 14 Financial Statement Modeling Victor Mendoza is an equity analyst for LLT Partners, a private wealth management firm. Mendoza is c... unattempted View Detail
7 Reading 14 Financial Statement Modeling For the purpose of forecasting proforma financial statements, which of the following statements is m... unattempted View Detail
8 Reading 14 Financial Statement Modeling Deluxe Toys, Inc., produces electronic toys for 2–12-year-olds. The most recent income statement for... unattempted View Detail
11 Reading 14 Financial Statement Modeling Which of the following is the most accurate statement with regard to the threat of new entrants? unattempted View Detail
12 Reading 14 Financial Statement Modeling Which of the following is the most accurate statement with regard to the availability of substitute ... unattempted View Detail
13 Reading 14 Financial Statement Modeling Jared Mush is preparing a report on the Everystate corporation. The information below pertains to th... unattempted View Detail
17 Reading 14 Financial Statement Modeling When comparing a large company with a much smaller company, which of the following statements regard... unattempted View Detail
18 Reading 14 Financial Statement Modeling Victor Mendoza is an equity analyst for LLT Partners, a private wealth management firm. Mendoza is c... unattempted View Detail
23 Reading 14 Financial Statement Modeling Everystate Corporation reports Long-term debt of $3,398 and $3,658 respectively for the year ended D... unattempted View Detail
24 Reading 14 Financial Statement Modeling Victor Mendoza is an equity analyst for LLT Partners, a private wealth management firm. Mendoza is c... unattempted View Detail
26 Reading 14 Financial Statement Modeling Cynbo Industries Limited operates in two countries Mazat and Napat. The effective tax rates of Cynbo... unattempted View Detail
51 Reading 8 Intercorporate Investments After the acquisitions, the liabilities reported by Company X will be: unattempted View Detail
52 Reading 8 Intercorporate Investments After the acquisitions, minority interest reported by Company X will be: unattempted View Detail
53 Reading 8 Intercorporate Investments Company X will report revenue for 2007 of: unattempted View Detail
54 Reading 8 Intercorporate Investments The change in the investment in the associates account (the account that reflects all non- consolida... unattempted View Detail
56 Reading 8 Intercorporate Investments Which of the following statements regarding special purpose entities (SPEs) is least accurate? unattempted View Detail
62 Reading 8 Intercorporate Investments What is the investment income that Zeisler Company will report for the year 2009 on its investment i... unattempted View Detail
63 Reading 8 Intercorporate Investments If Zeisler were to account for the Market Square Corporation shares as FVPL, assuming that the secur... unattempted View Detail
65 Reading 8 Intercorporate Investments If Zeisler were to account for the Market Square Corporation shares using the equity method, assumin... unattempted View Detail
66 Reading 8 Intercorporate Investments Last year, Parent Company acquired Sub Company for $2,000,000. On the date of acquisition, the fair ... unattempted View Detail
67 Reading 8 Intercorporate Investments What is the income from the equity portfolio if the securities are classified as FVPL? unattempted View Detail
68 Reading 8 Intercorporate Investments What is the balance sheet carrying value of the securities under each of the classifications at year... unattempted View Detail
69 Reading 8 Intercorporate Investments If the fixed income portfolio outlined in Exhibit 2 is remains classified as amortized cost, which o... unattempted View Detail
70 Reading 8 Intercorporate Investments If the bonds are reclassified as suggested by the chief investment officer, which of the following s... unattempted View Detail
73 Reading 8 Intercorporate Investments Mashburn Company acquired 25% of the 100,000 outstanding shares of Humm Co. on January 1 for $250,00... unattempted View Detail
74 Reading 8 Intercorporate Investments Company X owns 15% of company S and exerts significant influence over the operations of the company.... unattempted View Detail
75 Reading 8 Intercorporate Investments Carter Schmitz, Inc. (Schmitz) purchased 200 shares of Intelismart at $21 a share in June 2006 and c... unattempted View Detail
76 Reading 8 Intercorporate Investments In 2003, Flitenight would reflect its investment in Rocky Mountain on its income statement by record... unattempted View Detail
83 Reading 8 Intercorporate Investments Haggs wonders which accounting method Simpson uses to calculate the book value of the BC investment ... unattempted View Detail
84 Reading 8 Intercorporate Investments Haggs wants to make sure that he assumes the proper accounting method when he does his analysis. The... unattempted View Detail
4. Corporate Issuers 36 missing
Question # Reading Question Text Preview Status Actions
1 Reading 15 Analysis of Dividends and Share Repurchases Last year, Calfee Multimedia had earnings of $4.00 per share and paid a dividend of $0.30. In the cu... unattempted View Detail
2 Reading 15 Analysis of Dividends and Share Repurchases Which of the following statements about dividend policy is most accurate? unattempted View Detail
4 Reading 15 Analysis of Dividends and Share Repurchases Which of the following statements about a stock repurchase is least accurate? unattempted View Detail
6 Reading 15 Analysis of Dividends and Share Repurchases If Modigliani and Miller's dividend irrelevancy theory is correct, what is the impact on a firm's co... unattempted View Detail
11 Reading 15 Analysis of Dividends and Share Repurchases Hikaru Takei is the portfolio manager for the Reliant Dividend Focused Fund. Takei wants to add a fi... unattempted View Detail
12 Reading 15 Analysis of Dividends and Share Repurchases What is the impact on shareholder wealth of a share repurchase versus cash dividend of equal amount ... unattempted View Detail
13 Reading 15 Analysis of Dividends and Share Repurchases Laura's Chocolates Inc. (L unattempted View Detail
14 Reading 15 Analysis of Dividends and Share Repurchases According to Gordon, Litner, and Graham, what will be the impact of the dividend initiation on the c... unattempted View Detail
16 Reading 15 Analysis of Dividends and Share Repurchases The Commercial Director has mentioned four out of six factors that influence dividend policy. Which ... unattempted View Detail
18 Reading 15 Analysis of Dividends and Share Repurchases The following information is from the 10-k of Laura's Chocolates, Inc.(LC), a maker of nut- based to... unattempted View Detail
22 Reading 15 Analysis of Dividends and Share Repurchases The share price of Winnipeg Auto Unlimited is $5 per share. There are 50 million shares outstanding,... unattempted View Detail
24 Reading 15 Analysis of Dividends and Share Repurchases The share price of Solar Automotive Industries is $50 per share. It has a book value of $500 million... unattempted View Detail
28 Reading 15 Analysis of Dividends and Share Repurchases Which of the following statements about a stock repurchase is least accurate? unattempted View Detail
33 Reading 15 Analysis of Dividends and Share Repurchases Pants R Us Inc.'s Board of Directors is considering repurchasing $30,000,000 worth of common stock. ... unattempted View Detail
34 Reading 15 Analysis of Dividends and Share Repurchases Which of the following statements about differences observed in payout trends in US and Europe is mo... unattempted View Detail
36 Reading 15 Analysis of Dividends and Share Repurchases At a recent conference, "Dividends − Are They Increasing?", several lecturers were discussing the si... unattempted View Detail
40 Reading 15 Analysis of Dividends and Share Repurchases Global Development expects to earn $6 million next year. 40% of this amount, or $2.4 million, has be... unattempted View Detail
42 Reading 15 Analysis of Dividends and Share Repurchases The share prices of Solar Automotive Industries and Winnipeg Auto Unlimited are both $50 per share, ... unattempted View Detail
43 Reading 15 Analysis of Dividends and Share Repurchases The current stock price of Westkirk is $50.00 per share. Book value of equity is $200 million and 10... unattempted View Detail
44 Reading 15 Analysis of Dividends and Share Repurchases International Pulp, a Swiss-based paper company, has annual pretax earnings (in Swiss francs) of SF ... unattempted View Detail
45 Reading 15 Analysis of Dividends and Share Repurchases Sinclair Construction Company's Board of Directors is considering repurchasing $30,000,000 worth of ... unattempted View Detail
2 Reading 16 Environmental, Social, and Governance (ESG) Considerations in Investment Analysis All of the following are examples of the principal-agent relationship (PAR) problem EXCEPT: unattempted View Detail
7 Reading 16 Environmental, Social, and Governance (ESG) Considerations in Investment Analysis CEO duality exists when the chief executive officer: unattempted View Detail
9 Reading 16 Environmental, Social, and Governance (ESG) Considerations in Investment Analysis The principal-agent problem can best be described as: unattempted View Detail
14 Reading 16 Environmental, Social, and Governance (ESG) Considerations in Investment Analysis A principal-agent problem may exist between: unattempted View Detail
5 Reading 17 Cost of Capital - Advanced Topics Currently the market index stands at 1,190.45. Firms in the index are expected to pay cumulative div... unattempted View Detail
11 Reading 17 Cost of Capital - Advanced Topics Helsevesen's cost of common equity using the Fama-French five-factor model is closest to: unattempted View Detail
12 Reading 17 Cost of Capital - Advanced Topics Helsevesen's cost of common equity using the bond yield plus risk premium (BYPRP) model is closest t... unattempted View Detail
13 Reading 17 Cost of Capital - Advanced Topics Using the Grinold-Kroner model, the estimated ERP for Yukon is closest to: unattempted View Detail
14 Reading 17 Cost of Capital - Advanced Topics If a company's debt is publicly traded, the most appropriate estimate of its cost of debt can be der... unattempted View Detail
4 Reading 18 Corporate Restructuring Which of the following statements about Company P's WACC is most accurate? unattempted View Detail
5 Reading 18 Corporate Restructuring Which of the following is the best estimate of the value of equity of Company S, using the comparabl... unattempted View Detail
8 Reading 18 Corporate Restructuring Which corporate transaction is most likely in response to compliance with regulatory requirements? unattempted View Detail
10 Reading 18 Corporate Restructuring Petra Zimuth, CFA, is analyzing an announced acquisition. Under the terms, Apollo, Inc., is to be ta... unattempted View Detail
11 Reading 18 Corporate Restructuring Which of the following is least likely an advantage of comparable company analysis? unattempted View Detail
12 Reading 18 Corporate Restructuring Which of the following statements about materiality is least accurate? unattempted View Detail
5. Equity Valuation 137 missing
Question # Reading Question Text Preview Status Actions
66 Reading 20 Discounted Dividend Valuation If a stock expects to pay dividends of $2.30 per share next year, what is the value of the stock if ... unattempted View Detail
67 Reading 20 Discounted Dividend Valuation Jand, Inc., currently pays a dividend of $1.22, which is expected to grow at 5%. If the current valu... unattempted View Detail
72 Reading 20 Discounted Dividend Valuation What is the implied required rate of return for Reality Productions? unattempted View Detail
73 Reading 20 Discounted Dividend Valuation Based upon its current market value, what is the implied long-term sustainable growth rate of Turbo ... unattempted View Detail
74 Reading 20 Discounted Dividend Valuation What is the present value of Aultman's future investment opportunities as a percentage of the market... unattempted View Detail
75 Reading 20 Discounted Dividend Valuation What is the beta implied by a market price of $40.38? unattempted View Detail
76 Reading 20 Discounted Dividend Valuation Based on CAPM and the Gordon growth model, what is the value of the UC stock if the firm's retention... unattempted View Detail
78 Reading 20 Discounted Dividend Valuation Assuming a beta of 1.12, if UC's growth rate is 10% initially and is expected to decline steadily to... unattempted View Detail
80 Reading 20 Discounted Dividend Valuation UC Inc. had earnings of $3.00/share last year and a justified trailing P/E of 15.0. Is the stock cur... unattempted View Detail
81 Reading 20 Discounted Dividend Valuation An analyst for a small European investment bank is interested in valuing stocks by calculating the p... unattempted View Detail
82 Reading 20 Discounted Dividend Valuation Ambiance Company has a current market price of $42, a current dividend of $1.25 and a required rate ... unattempted View Detail
83 Reading 20 Discounted Dividend Valuation Obsidian Glass Company has current earnings of $2.22, a required return of 8%, and the present value... unattempted View Detail
84 Reading 20 Discounted Dividend Valuation A firm pays a current dividend of $1.00 which is expected to grow at a rate of 5% indefinitely. If c... unattempted View Detail
85 Reading 20 Discounted Dividend Valuation Recent surveys of analysts report long-term earnings growth estimates as 5.5% and a forecasted divid... unattempted View Detail
90 Reading 20 Discounted Dividend Valuation Based on the forecast data in Table 3, Flyaweight's sustainable growth rate (SGR) is closest to whic... unattempted View Detail
91 Reading 20 Discounted Dividend Valuation IAM, Inc. has a current stock price of $40.00 and expects to pay a dividend in one year of $1.80. Th... unattempted View Detail
92 Reading 20 Discounted Dividend Valuation If a firm has a return on equity of 15%, a current dividend of $1.00, and a sustainable growth rate ... unattempted View Detail
93 Reading 20 Discounted Dividend Valuation Dynamite, Inc., has current earnings of $26, current dividend of $2, and a returned on equity of 18%... unattempted View Detail
97 Reading 20 Discounted Dividend Valuation Free cash flow to equity models (FCFE) are most appropriate when estimating the value of the firm: unattempted View Detail
98 Reading 20 Discounted Dividend Valuation If an asset's beta is 0.8, the expected return on the equity market is 10%, the retention ratio is 0... unattempted View Detail
100 Reading 20 Discounted Dividend Valuation The current market price per share for High-on-the-Hog, Inc. is $52.50, and an analyst is using the ... unattempted View Detail
101 Reading 20 Discounted Dividend Valuation What is the value of a fixed-rate perpetual preferred share (par value $100) with a dividend rate of... unattempted View Detail
103 Reading 20 Discounted Dividend Valuation What is the difference between a standard two-stage growth model and the H-model? unattempted View Detail
104 Reading 20 Discounted Dividend Valuation If the expected return on the equity market is 10% and the risk-free rate is 3%, the required return... unattempted View Detail
107 Reading 20 Discounted Dividend Valuation An investor computes the current value of a firm's shares to be $34.34, based on an expected dividen... unattempted View Detail
108 Reading 20 Discounted Dividend Valuation Using the Gordon growth model (GGM), what is the equity risk premium? unattempted View Detail
109 Reading 20 Discounted Dividend Valuation Davidson needs to determine if the shares of Wellborn are currently undervalued or overvalued in the... unattempted View Detail
110 Reading 20 Discounted Dividend Valuation As a part of her analysis, Davidson needs to calculate return on equity for both potential investmen... unattempted View Detail
111 Reading 20 Discounted Dividend Valuation Davidson determines that over the past three years, Samson has maintained an average net profit marg... unattempted View Detail
112 Reading 20 Discounted Dividend Valuation Deployment Specialists pays a current (annual) dividend of $1.00 and is expected to grow at 20% for ... unattempted View Detail
113 Reading 20 Discounted Dividend Valuation Suppose the equity required rate of return is 10%, the dividend just paid is $1.00 and dividends are... unattempted View Detail
116 Reading 20 Discounted Dividend Valuation An analyst has forecast that Hapex Company, which currently pays a dividend of $6.00, will grow at a... unattempted View Detail
117 Reading 20 Discounted Dividend Valuation A firm has the following characteristics: Current share price $100.00. Current earnings $3.50. Curre... unattempted View Detail
118 Reading 20 Discounted Dividend Valuation A firm has the following characteristics: Current share price $100.00. One-year earnings $3.50 One-y... unattempted View Detail
120 Reading 20 Discounted Dividend Valuation Supergro has current dividends of $1, current earnings of $3, and a sustainable growth rate of 10%. ... unattempted View Detail
123 Reading 20 Discounted Dividend Valuation Supergro has current dividends of $1, current earnings of $3, and a return on equity of 16%, what is... unattempted View Detail
125 Reading 20 Discounted Dividend Valuation GreenGrow, Inc., has current dividends of $2.00, current earnings of $4.00 and a return on equity of... unattempted View Detail
127 Reading 20 Discounted Dividend Valuation Using Shotput's financial statements and Jeff Cape's estimates, calculate an equity value for Shotpu... unattempted View Detail
128 Reading 20 Discounted Dividend Valuation Calculate an equity value using the assumptions made by Karlson (to the nearest $m): unattempted View Detail
129 Reading 20 Discounted Dividend Valuation Is Savickas correct in his comments regarding the DDM? unattempted View Detail
130 Reading 20 Discounted Dividend Valuation What adjustment to his calculation method does Capes need to make in to correctly calculate PVGO? unattempted View Detail
132 Reading 20 Discounted Dividend Valuation Which of the following groups of statistics provides enough data to calculate an implied return for ... unattempted View Detail
133 Reading 20 Discounted Dividend Valuation The three-stage dividend discount model (DDM) allows for an initial period of: unattempted View Detail
135 Reading 20 Discounted Dividend Valuation Q-Partners is expected to have earnings in ten years of $12 per share, a dividend payout ratio of 50... unattempted View Detail
52 Reading 21 Free Cash Flow Valuation Using the information available in Exhibit 1, Operating Cash Flow (CFO) for Fishy Discs is closest t... unattempted View Detail
53 Reading 21 Free Cash Flow Valuation Using the information available in Exhibit 1, capital expenditure for Fishy Discs is closest to? unattempted View Detail
55 Reading 21 Free Cash Flow Valuation Using only the corporate finance firm's data in Exhibit 2 and their growth assumptions, the value of... unattempted View Detail
56 Reading 21 Free Cash Flow Valuation How many on of Tony's concerns are valid? unattempted View Detail
57 Reading 21 Free Cash Flow Valuation How many of the FCFF definitions, in Exhibit 3, that Tony is studying are accurate? unattempted View Detail
64 Reading 21 Free Cash Flow Valuation Assuming that the investment in fixed capital and working capital offset each other, free cash flow ... unattempted View Detail
65 Reading 21 Free Cash Flow Valuation Mark Washington, CFA, uses a two-stage free cash flow to equity (FCFE) discount model to value Texas... unattempted View Detail
68 Reading 21 Free Cash Flow Valuation Assuming a constant debt-to-asset ratio, the base year FCFE is closest to: unattempted View Detail
69 Reading 21 Free Cash Flow Valuation Using the stable-growth FCFE model as suggested by Analyst #1, the value of Hiller stock is closest ... unattempted View Detail
70 Reading 21 Free Cash Flow Valuation Based on Analyst #2's estimates, the sum of the terminal value plus the FCFE for year 6 is closest t... unattempted View Detail
71 Reading 21 Free Cash Flow Valuation Based on Analyst #2's estimates, the value of Hiller stock is closest to: unattempted View Detail
75 Reading 21 Free Cash Flow Valuation Given Nguyen's estimate of Country Point's terminal value in 2008, what is the growth assumption she... unattempted View Detail
76 Reading 21 Free Cash Flow Valuation The value of beta for Country Point is: unattempted View Detail
77 Reading 21 Free Cash Flow Valuation The following information pertains to the Harrisburg Tire Company (HT unattempted View Detail
79 Reading 21 Free Cash Flow Valuation The repurchase of 20% of a firm's outstanding common shares will cause free cash flow to the firm (F... unattempted View Detail
80 Reading 21 Free Cash Flow Valuation The following information is derived from the financial records of Brown Company for the year ended ... unattempted View Detail
83 Reading 21 Free Cash Flow Valuation The free cash flow to the firm (FCFF) for the current year is closest to: unattempted View Detail
85 Reading 21 Free Cash Flow Valuation If the estimated value of the free cash to the firm (FCFF) for year 0 is $2.4 million, the value per... unattempted View Detail
86 Reading 21 Free Cash Flow Valuation The current market price of BIC is $62.50 per share, and the current year's FCFE is $1.75 million. U... unattempted View Detail
87 Reading 21 Free Cash Flow Valuation A firm's free cash flow to equity (FCFE) in the most recent year is $50M and is expected to grow at ... unattempted View Detail
93 Reading 21 Free Cash Flow Valuation Sudbury Industries expects FCFF in the coming year of 400 million Canadian dollars ($), and expects ... unattempted View Detail
96 Reading 21 Free Cash Flow Valuation SOX, Inc., expects high growth in the next 4 years before slowing to a stable future growth of 3%. T... unattempted View Detail
99 Reading 21 Free Cash Flow Valuation The firm's earnings growth rate is most accurately estimated as: unattempted View Detail
100 Reading 21 Free Cash Flow Valuation The 2013 forecasted free cash flow to equity is: unattempted View Detail
101 Reading 21 Free Cash Flow Valuation If the total market value of equity is $6.0 billion and the growth rate is 8.0%, the cost of equity ... unattempted View Detail
102 Reading 21 Free Cash Flow Valuation The beta for HTC is 1.056, the risk-free rate is 5.0% and the market risk premium is 10.0%. The weig... unattempted View Detail
103 Reading 21 Free Cash Flow Valuation Free cash flow to the firm valuation uses which discount rate? unattempted View Detail
106 Reading 21 Free Cash Flow Valuation Assuming an ROE on 11.5%, which of the following is the best estimate of the sustainable growth rate... unattempted View Detail
107 Reading 21 Free Cash Flow Valuation Which of the following is the most accurate estimate of the value of a share of Busicomb Inc.'s comm... unattempted View Detail
110 Reading 21 Free Cash Flow Valuation Calculate the forecasted free cash flow to equity (FCFE) for 2x12. unattempted View Detail
111 Reading 21 Free Cash Flow Valuation Regarding the handbook's statements on free cash flow techniques: Statement 1 Statement 2 unattempted View Detail
112 Reading 21 Free Cash Flow Valuation Regarding the handbook's statements on free cash flow techniques: Statement 3 Statement 4 unattempted View Detail
114 Reading 21 Free Cash Flow Valuation Assuming Patrick is correct to use free cash flow to the firm to value Fite Inc.; the value of the f... unattempted View Detail
115 Reading 21 Free Cash Flow Valuation Regarding statements 1 and 2, are Ballmer's interpretations of free cash flow to the firm (FCFF) and... unattempted View Detail
117 Reading 21 Free Cash Flow Valuation Should dividend-based and free cash flow from equity (FCFE) based valuations result in different equ... unattempted View Detail
123 Reading 21 Free Cash Flow Valuation The value of stock under the two-stage FCFE model will be equal to: unattempted View Detail
125 Reading 21 Free Cash Flow Valuation A three-stage free cash flow to the firm (FCFF) is typically appropriate when: unattempted View Detail
127 Reading 21 Free Cash Flow Valuation Industrial Light currently has: Free cash flow to equity = $4.0 million. Cost of equity = 12%. Weigh... unattempted View Detail
130 Reading 21 Free Cash Flow Valuation A firm currently has the following per share values: Cash flow from operations (CFO) is $49.50. Inve... unattempted View Detail
131 Reading 21 Free Cash Flow Valuation A common approach to forecasting free cash flows is to: unattempted View Detail
132 Reading 21 Free Cash Flow Valuation The following table provides forecasts for next year on a per share basis for TOY Inc.: Item Forecas... unattempted View Detail
133 Reading 21 Free Cash Flow Valuation The repayment of a significant amount of outstanding debt will cause free cash flow to equity (FCFE)... unattempted View Detail
135 Reading 21 Free Cash Flow Valuation A firm's free cash flow to the firm (FCFF) in the most recent year is $80M and is expected to grow a... unattempted View Detail
56 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples At a CFA society function, Robert Chan comments to Li Chiao that Xanedu Industries' expected dividen... unattempted View Detail
74 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Robert Chan comments to Leslie Singer that Converted Industries' expected dividend growth rate is 5.... unattempted View Detail
75 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples A firm's return on equity (ROE) is 14%, its required rate of return is 10%, and its expected growth ... unattempted View Detail
76 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Proprietary Technologies, Inc., (PTI) has a leading price-to-earnings (P/E) ratio of 28 while the me... unattempted View Detail
77 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples An analyst is valuing a company with a dividend payout ratio of 0.65, a beta of 0.72, and an expecte... unattempted View Detail
79 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples An increase in return on equity (ROE) will cause a price-to-book (P/ unattempted View Detail
80 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples What is the justified trailing price-to-earnings (P/E) multiple of a stock that has a payout ratio o... unattempted View Detail
82 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples An analyst gathered the following data for TRK Construction [all amounts in Swiss francs (Sf)]: Rece... unattempted View Detail
83 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Which of the following price multiples is most severely damaged by international accounting differen... unattempted View Detail
88 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples A common price to earnings (P/E) based method for estimating terminal value in multi-stage models is... unattempted View Detail
90 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Which of the following is a common momentum valuation indicator? unattempted View Detail
91 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Analyst Ariel Cunningham likes using the price/earnings ratio for valuation purposes because studies... unattempted View Detail
93 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples What is the justified trailing price-to-earnings (P/E) multiple of a stock that has a payout ratio o... unattempted View Detail
94 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Which of the following factors is NOT a source of differences in cross-border valuation comparisons? unattempted View Detail
101 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Good Sports, Inc., (GSI) has a leading price-to-earnings (P/E) ratio of 12.75 and a 5-year consensus... unattempted View Detail
102 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Two security analysts, Ramon Long and Sri Beujeau, disagree about certain aspects of the PEG ratio. ... unattempted View Detail
103 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples The Farmer Co. has a payout ratio of 65% and a return on equity (ROE) of 16% (assume that this is ex... unattempted View Detail
104 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Barnes is contemplating the use of a price/earnings ratio to value a start-up medical technology fir... unattempted View Detail
111 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples An analyst has gathered the following data about the Garber Company: Payout Ratio = 60%. Expected Re... unattempted View Detail
112 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples What is the appropriate price-to-sales (P/S) multiple of a stock that has a retention ratio of 45%, ... unattempted View Detail
113 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples An analyst is calculating the weighted harmonic mean P/E ratio of a 2-stock portfolio. Stocks AAA an... unattempted View Detail
116 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Calculate the value of equity to the nearest $1 million using a FCFE model and the cash flows / assu... unattempted View Detail
117 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Which of the following is the normalized earnings figure for 2x10, which will be calculated by Pedro... unattempted View Detail
118 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Which of the following is least likely to be a limitation of the predicted P/E used by Pedroia to ca... unattempted View Detail
119 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Which of the following errors has Pedroia made in back testing his stock screen? unattempted View Detail
120 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples An analyst gathered the following data for TRK Construction [all amounts in Swiss francs (Sf)]: Rece... unattempted View Detail
122 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples A firm is better valued using the discounted cash flow approach than the P/E multiples approach when... unattempted View Detail
123 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Glad Tidings Gifts (GTG) recently reported annual earnings per share (EPS) of $2.25, which included ... unattempted View Detail
124 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Calculate free cash flow to equity (FCFE): unattempted View Detail
125 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Using the cash flow statement approach calculate the aggregate accruals ratio: unattempted View Detail
128 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples What is the appropriate leading price-to-earnings (P/E) multiple of a stock that has a projected pay... unattempted View Detail
133 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples An argument for using the price-to-earnings (P/E) valuation approach is that: unattempted View Detail
135 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Herb McClain tells Cammy Oren that Kline Industries' expected dividend growth rate is 4.0%, ROE is 1... unattempted View Detail
136 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Precision Tools is expected to have earnings per share (EPS) of $5.00 per share in five years, a div... unattempted View Detail
138 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples A firm has a return on equity (ROE) of 18%, an estimated growth rate of 13%, and its shareholders re... unattempted View Detail
139 Reading 22 Market-Based Valuation - Price and Enterprise Value Multiples Bill Whelan and Chad Delft are arguing about the relative merits of valuation metrics. Whelan: "My r... unattempted View Detail
37 Reading 23 Residual Income Valuation The residual income of Geremiah Analytics is closest to: unattempted View Detail
38 Reading 23 Residual Income Valuation Regarding their statements about ROE and residual income, who is correct? LaMarre Hofstedt unattempted View Detail
44 Reading 23 Residual Income Valuation Travel Advisors has earnings before interest and taxes (EBIT) of $200 million, interest expense of $... unattempted View Detail
46 Reading 23 Residual Income Valuation SmallCo has the following characteristics: Long-term debt = $55 million Equity = $45 million WACC = ... unattempted View Detail
49 Reading 23 Residual Income Valuation Which description of the relationship among residual income, dividend discount (DDM) and free cash f... unattempted View Detail
51 Reading 23 Residual Income Valuation The residual income approach is NOT appropriate when: unattempted View Detail
53 Reading 23 Residual Income Valuation Reported accounting data are most likely to bias an estimate of residual income when: unattempted View Detail
54 Reading 23 Residual Income Valuation Using the assumptions given for RI Inc., and using a single stage (constant growth) model the hypoth... unattempted View Detail
55 Reading 23 Residual Income Valuation Is Chair correct in his stated concerns? unattempted View Detail
58 Reading 23 Residual Income Valuation An analyst is considering the purchase of Delphos Machinery, which has a price-to-book value (P/ unattempted View Detail
60 Reading 23 Residual Income Valuation Among the various price multiples, the residual income model is most closely linked to which of the ... unattempted View Detail
62 Reading 23 Residual Income Valuation Red Shoes's recent financial statements reported a book value of $11.00 per share; its required rate... unattempted View Detail
65 Reading 23 Residual Income Valuation Creative Gardening is expected to have a return on equity (ROE) of 13% for the next five years and s... unattempted View Detail
73 Reading 23 Residual Income Valuation Travel Advisors has earnings before interest and taxes (EBIT) of $200 million, interest expense of $... unattempted View Detail
6. Fixed Income 146 missing
Question # Reading Question Text Preview Status Actions
48 Reading 25 The Term Structure and Interest Rate Dynamics The benchmark bond being assessed by Holly is most likely: unattempted View Detail
52 Reading 25 The Term Structure and Interest Rate Dynamics With respect to local expectations theory, which of the following statements is most consistent with... unattempted View Detail
57 Reading 25 The Term Structure and Interest Rate Dynamics Use the following spot rate curve to answer this question: Maturity 1 2 3 Spot rates 5% 5.5% 6% The ... unattempted View Detail
58 Reading 25 The Term Structure and Interest Rate Dynamics Given annual spot interest rates for 1 year, 2 years, 3 years, 4 years, and 5 years, the maximum num... unattempted View Detail
61 Reading 25 The Term Structure and Interest Rate Dynamics Which of the following best evaluates Terry's justification for using the swap curve as the benchmar... unattempted View Detail
64 Reading 25 The Term Structure and Interest Rate Dynamics Joe McBath makes the following two statements: Statement 1: The swap rate curve indicates credit spr... unattempted View Detail
68 Reading 25 The Term Structure and Interest Rate Dynamics For an interest rate swap, the swap spread is the difference between the: unattempted View Detail
69 Reading 25 The Term Structure and Interest Rate Dynamics Which of the following best describes key rate duration? Key rate duration is determined by: unattempted View Detail
71 Reading 25 The Term Structure and Interest Rate Dynamics It is now January 1, 20x7. The one-year spot rate now is exactly equal to the one-year forward rate ... unattempted View Detail
74 Reading 25 The Term Structure and Interest Rate Dynamics What are the implications for the shape of the yield curve according to the liquidity theory? The yi... unattempted View Detail
77 Reading 25 The Term Structure and Interest Rate Dynamics A 2-year $1,000 par, 5% (semi-annual pay) Mexa-corp bond has a Z-spread of 45bps. Using the followin... unattempted View Detail
41 Reading 27 Valuation and Analysis of Bonds With Embedded Options What is the value of the capped floater using Nagy's line manager's binomial tree of interest rate e... unattempted View Detail
42 Reading 27 Valuation and Analysis of Bonds With Embedded Options Which of the following statements is/are correct? Statement I: The straight bond should trade for le... unattempted View Detail
43 Reading 27 Valuation and Analysis of Bonds With Embedded Options Suppose Redna were to issue a bond that was identical in all respects to the existing callable bond ... unattempted View Detail
44 Reading 27 Valuation and Analysis of Bonds With Embedded Options Using the report of the economist, which of the following order of effective durations (highest to l... unattempted View Detail
45 Reading 27 Valuation and Analysis of Bonds With Embedded Options A callable bond and an option-free bond have the same coupon, maturity and rating. The callable bond... unattempted View Detail
46 Reading 27 Valuation and Analysis of Bonds With Embedded Options Which of the following most accurately explains how the effective convexity is computed using the bi... unattempted View Detail
47 Reading 27 Valuation and Analysis of Bonds With Embedded Options Joseph Dentice, CFA is evaluating three bonds. All three bonds have a coupon rate of 3%, maturity of... unattempted View Detail
49 Reading 27 Valuation and Analysis of Bonds With Embedded Options Sharon Rogner, CFA is evaluating three bonds for inclusion in fixed income portfolio for one of her ... unattempted View Detail
50 Reading 27 Valuation and Analysis of Bonds With Embedded Options Assuming the common stock of MediSoft underwent a one-for-two reverse split, how would the features ... unattempted View Detail
51 Reading 27 Valuation and Analysis of Bonds With Embedded Options Under what circumstances will the analyst's comments regarding the limited downside risk of MediSoft... unattempted View Detail
52 Reading 27 Valuation and Analysis of Bonds With Embedded Options Subsequent to purchasing one of the putable bonds for his portfolio, one of the managers at Brown & ... unattempted View Detail
53 Reading 27 Valuation and Analysis of Bonds With Embedded Options Bill Moxley, CFA is evaluating three bonds for inclusion in fixed income portfolio for one of his pe... unattempted View Detail
54 Reading 27 Valuation and Analysis of Bonds With Embedded Options Which of the following represent the correct values that should be within the tree in the places mar... unattempted View Detail
55 Reading 27 Valuation and Analysis of Bonds With Embedded Options Which of the following represent the correct value that should be within the tree in the place marke... unattempted View Detail
56 Reading 27 Valuation and Analysis of Bonds With Embedded Options Which of the following is most accurate regarding the use of a binomial tree to calculate the option... unattempted View Detail
57 Reading 27 Valuation and Analysis of Bonds With Embedded Options Which of the following represent the correct value that should be within the tree in the place marke... unattempted View Detail
58 Reading 27 Valuation and Analysis of Bonds With Embedded Options Joseph Dentice, CFA is evaluating three bonds. All three bonds have a coupon rate of 3%, maturity of... unattempted View Detail
59 Reading 27 Valuation and Analysis of Bonds With Embedded Options Suppose that the value of an option-free bond is equal to 100.16, the value of the corresponding cal... unattempted View Detail
60 Reading 27 Valuation and Analysis of Bonds With Embedded Options Bill Moxley, CFA is evaluating three bonds for inclusion in fixed income portfolio for one of his pe... unattempted View Detail
61 Reading 27 Valuation and Analysis of Bonds With Embedded Options Compute V1L, the value of the bond at node 1L. unattempted View Detail
63 Reading 27 Valuation and Analysis of Bonds With Embedded Options Assume that the bond is putable in one year at par ($100) and that the put will be exercised if the ... unattempted View Detail
64 Reading 27 Valuation and Analysis of Bonds With Embedded Options Assume that the bond is putable in one year at par ($100) and that the put will be exercised if the ... unattempted View Detail
66 Reading 27 Valuation and Analysis of Bonds With Embedded Options Using the following interest rate tree, what is the value of a callable bond that has two years rema... unattempted View Detail
67 Reading 27 Valuation and Analysis of Bonds With Embedded Options The primary benefit of owning a convertible bond over owning the common stock of a corporation is th... unattempted View Detail
68 Reading 27 Valuation and Analysis of Bonds With Embedded Options For a putable bond, callable bond, or putable/callable bond, the nodal-decision process within the b... unattempted View Detail
69 Reading 27 Valuation and Analysis of Bonds With Embedded Options As the volatility of interest rates increases, the value of a callable bond will: unattempted View Detail
70 Reading 27 Valuation and Analysis of Bonds With Embedded Options Sharon Rogner, CFA is evaluating three bonds for inclusion in fixed income portfolio for one of her ... unattempted View Detail
71 Reading 27 Valuation and Analysis of Bonds With Embedded Options An analyst has constructed an interest rate tree for an on-the-run Treasury security. The analyst no... unattempted View Detail
74 Reading 27 Valuation and Analysis of Bonds With Embedded Options If the spot-rate curve experiences a parallel downward shift of 50 basis points: unattempted View Detail
75 Reading 27 Valuation and Analysis of Bonds With Embedded Options If the 5- and 10-year key rates increase by 20 basis points, but the 2- and 20-year key rates remain... unattempted View Detail
76 Reading 27 Valuation and Analysis of Bonds With Embedded Options Is Berg correct about the specified change in yield needed to obtain an accurate estimate of the eff... unattempted View Detail
77 Reading 27 Valuation and Analysis of Bonds With Embedded Options Joseph Dentice, CFA is evaluating three bonds. All three bonds have a coupon rate of 3%, maturity of... unattempted View Detail
79 Reading 27 Valuation and Analysis of Bonds With Embedded Options Which of the following is equal to the value of the putable bond? The putable bond value is equal to... unattempted View Detail
80 Reading 27 Valuation and Analysis of Bonds With Embedded Options As the volatility of interest rates increases, the value of a putable bond will: unattempted View Detail
81 Reading 27 Valuation and Analysis of Bonds With Embedded Options What is the market conversion price of a convertible security? unattempted View Detail
82 Reading 27 Valuation and Analysis of Bonds With Embedded Options A putable bond with a 6.4% annual coupon will mature in two years at par value. The current one-year... unattempted View Detail
84 Reading 27 Valuation and Analysis of Bonds With Embedded Options How do the risk-return characteristics of a newly issued convertible bond compare with the risk-retu... unattempted View Detail
85 Reading 27 Valuation and Analysis of Bonds With Embedded Options Using the following binomial interest rate tree, calculate the value of a two-year, 2.5% putable bon... unattempted View Detail
86 Reading 27 Valuation and Analysis of Bonds With Embedded Options On a given day, a bond with a call provision rose in value by 1%. What can be said about the level a... unattempted View Detail
87 Reading 27 Valuation and Analysis of Bonds With Embedded Options For a convertible bond, which of the following is least accurate? unattempted View Detail
88 Reading 27 Valuation and Analysis of Bonds With Embedded Options Sharon Rogner, CFA is evaluating three bonds for inclusion in fixed income portfolio for one of her ... unattempted View Detail
89 Reading 27 Valuation and Analysis of Bonds With Embedded Options A callable bond with an 8.2% annual coupon will mature in two years at par value. The current one-ye... unattempted View Detail
90 Reading 27 Valuation and Analysis of Bonds With Embedded Options For a callable bond, the value of an embedded option is the price of the option-free bond: unattempted View Detail
91 Reading 27 Valuation and Analysis of Bonds With Embedded Options Johnson asks Wall to compute the value of the call option. Using the given information what is the v... unattempted View Detail
92 Reading 27 Valuation and Analysis of Bonds With Embedded Options Wall is a little confused over the relationship between the embedded option and the callable bond. H... unattempted View Detail
93 Reading 27 Valuation and Analysis of Bonds With Embedded Options Wall wonders how the value of the callable bond changes when interest rate volatility increases. How... unattempted View Detail
94 Reading 27 Valuation and Analysis of Bonds With Embedded Options Wall now turns his attention to the value of the embedded call option. How does the value of the emb... unattempted View Detail
95 Reading 27 Valuation and Analysis of Bonds With Embedded Options Puldo still believes that Diffle must include the OAS for the Hardin bonds in his report. Puldo poin... unattempted View Detail
97 Reading 27 Valuation and Analysis of Bonds With Embedded Options Puldo notes that the duration estimate for the two bonds is not directly comparable. Assuming that t... unattempted View Detail
98 Reading 27 Valuation and Analysis of Bonds With Embedded Options Puldo notes that the duration estimate for the two bonds is not directly comparable. Assuming that t... unattempted View Detail
1 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following is equal to the value of a noncallable / nonputable convertible bond? The val... unattempted View Detail
2 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following statements is most accurate concerning a convertible bond? A convertible bond... unattempted View Detail
3 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers The effective convexity of a bond is most likely to be negative if the bond is: unattempted View Detail
4 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Woods is most likely resistant to the zero-volatility spread because the spread: unattempted View Detail
5 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers In general, the investment team at Matrix attempts to buy "cheap" securities because they are underv... unattempted View Detail
6 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the two bonds Woods is considering purchasing has the greater interest rate exposure? unattempted View Detail
7 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Matrix also currently has investments in several ABS. Which of the following spread measures is most... unattempted View Detail
8 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Value of a capped floater with a cap of 4% is closest to: unattempted View Detail
9 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Value of the cap in a capped floater with a cap of 4% is closest to: unattempted View Detail
10 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Suppose that the stock price of a common stock increases by 10%. Which of the following is most accu... unattempted View Detail
11 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Using the following tree of semiannual interest rates what is the value of a 5% callable bond that h... unattempted View Detail
12 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers How many of Inka's opening statements are correct? unattempted View Detail
13 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which value for the backwardly induced price of the corporate callable bond using the binomial tree ... unattempted View Detail
14 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers How many of Inka's comments about her binomial tree exercise are correct? unattempted View Detail
15 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers How many of Inka's comments about duration are accurate? unattempted View Detail
16 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following is the appropriate "nodal decision" within the backward induction methodology... unattempted View Detail
17 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Joseph Dentice, CFA is evaluating three bonds. All three bonds have a coupon rate of 3%, maturity of... unattempted View Detail
18 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following correctly describes one of the basic features of a convertible bond? A conver... unattempted View Detail
19 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following is the appropriate "nodal decision" within the backward induction methodology... unattempted View Detail
20 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following statements about how interest rate volatility affects the value bond is most ... unattempted View Detail
21 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers If a bond's key rate durations for maturity points shorter than the bond's maturity are negative, it... unattempted View Detail
22 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Using the binomial tree model, what is the value of the callable bond? unattempted View Detail
23 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers What is the value of the call option embedded in this bond? unattempted View Detail
25 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers The market conversion premium ratio for Stellar's convertible bond is closest to: unattempted View Detail
26 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following scenarios will lead to a convertible bond underperforming the underlying stoc... unattempted View Detail
28 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers For a convertible bond with a call provision, with respect to the bond's convertibility feature and ... unattempted View Detail
29 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers How does the value of a callable bond compare to a noncallable bond? The callable bond value is: unattempted View Detail
31 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers A convertible bond has a conversion ratio of 12 and a straight value of $1,010. The market value of ... unattempted View Detail
32 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Generally speaking, an analyst would like the option adjusted spread (OAS) to be large, controlling ... unattempted View Detail
34 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers A callable bond and an option-free bond have the same coupon, maturity and rating. The callable bond... unattempted View Detail
35 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers The value of a callable bond is equal to the: unattempted View Detail
36 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers The value of a convertible bond is most likely to be calculated as the value of an equivalent straig... unattempted View Detail
37 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which bonds would have its maturity-matched rate as its most critical rate? unattempted View Detail
38 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers For an option-free bond trading at par, it is least likely that: unattempted View Detail
39 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Suppose the market price of a convertible security is $1,050 and the conversion ratio is 26.64. What... unattempted View Detail
41 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers What is the value of the capped floater using Nagy's line manager's binomial tree of interest rate e... unattempted View Detail
42 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following statements is/are correct? Statement I: The straight bond should trade for le... unattempted View Detail
43 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Suppose Redna were to issue a bond that was identical in all respects to the existing callable bond ... unattempted View Detail
44 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Using the report of the economist, which of the following order of effective durations (highest to l... unattempted View Detail
45 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers A callable bond and an option-free bond have the same coupon, maturity and rating. The callable bond... unattempted View Detail
46 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following most accurately explains how the effective convexity is computed using the bi... unattempted View Detail
48 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Using the following tree of semiannual interest rates what is the value of a putable semiannual bond... unattempted View Detail
50 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Assuming the common stock of MediSoft underwent a one-for-two reverse split, how would the features ... unattempted View Detail
51 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Under what circumstances will the analyst's comments regarding the limited downside risk of MediSoft... unattempted View Detail
52 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Subsequent to purchasing one of the putable bonds for his portfolio, one of the managers at Brown & ... unattempted View Detail
53 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Bill Moxley, CFA is evaluating three bonds for inclusion in fixed income portfolio for one of his pe... unattempted View Detail
54 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following represent the correct values that should be within the tree in the places mar... unattempted View Detail
55 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following represent the correct value that should be within the tree in the place marke... unattempted View Detail
56 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following is most accurate regarding the use of a binomial tree to calculate the option... unattempted View Detail
57 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following represent the correct value that should be within the tree in the place marke... unattempted View Detail
58 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Joseph Dentice, CFA is evaluating three bonds. All three bonds have a coupon rate of 3%, maturity of... unattempted View Detail
59 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Suppose that the value of an option-free bond is equal to 100.16, the value of the corresponding cal... unattempted View Detail
61 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Compute V1L, the value of the bond at node 1L. unattempted View Detail
62 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Compute V0, the value of the bond at node 0. unattempted View Detail
63 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Assume that the bond is putable in one year at par ($100) and that the put will be exercised if the ... unattempted View Detail
64 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Assume that the bond is putable in one year at par ($100) and that the put will be exercised if the ... unattempted View Detail
66 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Using the following interest rate tree, what is the value of a callable bond that has two years rema... unattempted View Detail
67 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers The primary benefit of owning a convertible bond over owning the common stock of a corporation is th... unattempted View Detail
69 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers As the volatility of interest rates increases, the value of a callable bond will: unattempted View Detail
70 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Sharon Rogner, CFA is evaluating three bonds for inclusion in fixed income portfolio for one of her ... unattempted View Detail
71 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers An analyst has constructed an interest rate tree for an on-the-run Treasury security. The analyst no... unattempted View Detail
73 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Are the two observations Berg writes down after the fixed income conference advantages to using the ... unattempted View Detail
74 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers If the spot-rate curve experiences a parallel downward shift of 50 basis points: unattempted View Detail
75 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers If the 5- and 10-year key rates increase by 20 basis points, but the 2- and 20-year key rates remain... unattempted View Detail
76 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Is Berg correct about the specified change in yield needed to obtain an accurate estimate of the eff... unattempted View Detail
78 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers An analyst has constructed an interest rate tree for an on-the-run Treasury security. The analyst no... unattempted View Detail
79 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following is equal to the value of the putable bond? The putable bond value is equal to... unattempted View Detail
80 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers As the volatility of interest rates increases, the value of a putable bond will: unattempted View Detail
81 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers What is the market conversion price of a convertible security? unattempted View Detail
82 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers A putable bond with a 6.4% annual coupon will mature in two years at par value. The current one-year... unattempted View Detail
83 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers A CFA charter holder observes a 12-year 7 ¾ percent semiannual coupon bond trading at 102.9525. If i... unattempted View Detail
84 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers How do the risk-return characteristics of a newly issued convertible bond compare with the risk-retu... unattempted View Detail
85 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Using the following binomial interest rate tree, calculate the value of a two-year, 2.5% putable bon... unattempted View Detail
86 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers On a given day, a bond with a call provision rose in value by 1%. What can be said about the level a... unattempted View Detail
87 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers For a convertible bond, which of the following is least accurate? unattempted View Detail
88 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Sharon Rogner, CFA is evaluating three bonds for inclusion in fixed income portfolio for one of her ... unattempted View Detail
89 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers A callable bond with an 8.2% annual coupon will mature in two years at par value. The current one-ye... unattempted View Detail
90 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers For a callable bond, the value of an embedded option is the price of the option-free bond: unattempted View Detail
91 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Johnson asks Wall to compute the value of the call option. Using the given information what is the v... unattempted View Detail
92 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Wall is a little confused over the relationship between the embedded option and the callable bond. H... unattempted View Detail
93 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Wall wonders how the value of the callable bond changes when interest rate volatility increases. How... unattempted View Detail
94 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Wall now turns his attention to the value of the embedded call option. How does the value of the emb... unattempted View Detail
96 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Which of the following statements is most accurate regarding Diffle's calculation of duration and co... unattempted View Detail
97 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Puldo notes that the duration estimate for the two bonds is not directly comparable. Assuming that t... unattempted View Detail
98 Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers Puldo notes that the duration estimate for the two bonds is not directly comparable. Assuming that t... unattempted View Detail
7. Derivatives 74 missing
Question # Reading Question Text Preview Status Actions
1 Reading 30 Pricing and Valuation of Forward Commitments At the inception of a market-rate plain vanilla swap, the value of the swap to the fixed-rate payer ... unattempted View Detail
3 Reading 30 Pricing and Valuation of Forward Commitments Which forward rate agreement would most effectively hedge Vetements Verdun's exposure to LIBOR? unattempted View Detail
4 Reading 30 Pricing and Valuation of Forward Commitments Which value is closest to the price of the most effective hedge for Vetements Verdun? unattempted View Detail
5 Reading 30 Pricing and Valuation of Forward Commitments What must the 90-day LIBOR rate have been at the expiration of the contract? unattempted View Detail
6 Reading 30 Pricing and Valuation of Forward Commitments The current U.S. dollar ($) to Canadian dollar (C$) exchange rate is 0.7. In a $1 million currency s... unattempted View Detail
7 Reading 30 Pricing and Valuation of Forward Commitments Calculate the price (expressed as an annualized rate) of a 1x4 forward rate agreement (FR unattempted View Detail
8 Reading 30 Pricing and Valuation of Forward Commitments Consider a one-year currency swap with semiannual payments. The payments are in U.S. dollars and eur... unattempted View Detail
11 Reading 30 Pricing and Valuation of Forward Commitments The no-arbitrage price of a futures contract with a spot rate of 990, a time to maturity of 2 years,... unattempted View Detail
12 Reading 30 Pricing and Valuation of Forward Commitments The fixed-rate on a semiannual 2-year interest rate swap is closest to the: unattempted View Detail
13 Reading 30 Pricing and Valuation of Forward Commitments How will the price of the one-year stock index future perform over the next 12 months? unattempted View Detail
14 Reading 30 Pricing and Valuation of Forward Commitments Comment 1 is best described as: unattempted View Detail
15 Reading 30 Pricing and Valuation of Forward Commitments Comment 2 is best described as: unattempted View Detail
16 Reading 30 Pricing and Valuation of Forward Commitments Using Exhibit 1, the quoted price of the Treasury bond futures contract should be closest to: unattempted View Detail
20 Reading 30 Pricing and Valuation of Forward Commitments days ago, J. Klein took a short position in a $10 million (3X6) forward rate agreement (FR unattempted View Detail
23 Reading 30 Pricing and Valuation of Forward Commitments For a futures contract on an asset with no storage costs, convenience yield, or other expected cash ... unattempted View Detail
25 Reading 30 Pricing and Valuation of Forward Commitments The no-arbitrage futures price of the Euro-bond contract is closest to: unattempted View Detail
27 Reading 30 Pricing and Valuation of Forward Commitments Consider a fixed-for-fixed 1-year $100,000 semiannual currency swap with rates of 5.0% in USD and 4.... unattempted View Detail
30 Reading 30 Pricing and Valuation of Forward Commitments Consider a fixed-rate semiannual-pay equity swap where the equity payments are the total return on a... unattempted View Detail
31 Reading 30 Pricing and Valuation of Forward Commitments At expiration, the value of a forward contract is: unattempted View Detail
33 Reading 30 Pricing and Valuation of Forward Commitments Which of the following comments relating to Brodeur's use of a forward rate agreement is least accur... unattempted View Detail
34 Reading 30 Pricing and Valuation of Forward Commitments Using the data in Exhibit 1, which of the following is closest to the forward price of the FRA? unattempted View Detail
35 Reading 30 Pricing and Valuation of Forward Commitments For this question only, assume that the forward price of the FRA was 2.9%. Which of the following is... unattempted View Detail
38 Reading 30 Pricing and Valuation of Forward Commitments A stock is currently priced at $110 and will pay a $2 dividend in 85 days and is expected to pay a $... unattempted View Detail
39 Reading 30 Pricing and Valuation of Forward Commitments Consider a 9-month forward contract on a 10-year 7% Treasury note just issued at par. The effective ... unattempted View Detail
40 Reading 30 Pricing and Valuation of Forward Commitments Consider a 1-year, $5 million semiannual-pay fixed-rate equity swap initiated when the equity index ... unattempted View Detail
41 Reading 30 Pricing and Valuation of Forward Commitments The value of the S&P 500 Index is 1,260. The continuously compounded risk-free rate is 5.4% and the ... unattempted View Detail
46 Reading 30 Pricing and Valuation of Forward Commitments Calculate the price of a 200-day forward contract on an 8%, semi-annual, U.S. Treasury bond with a s... unattempted View Detail
50 Reading 30 Pricing and Valuation of Forward Commitments Over the life of a swap, the price of the swap: unattempted View Detail
52 Reading 30 Pricing and Valuation of Forward Commitments Consider a 1-year semiannual equity swap based on an index at 985 and a fixed rate of 4.4%. 90 days ... unattempted View Detail
58 Reading 30 Pricing and Valuation of Forward Commitments How many of Smith's comments are correct? unattempted View Detail
64 Reading 30 Pricing and Valuation of Forward Commitments During the life of a forward contract, the value of the contract is best described as: unattempted View Detail
65 Reading 30 Pricing and Valuation of Forward Commitments The floating-rate payer in a simple interest-rate swap has a position that is equivalent to: unattempted View Detail
66 Reading 30 Pricing and Valuation of Forward Commitments Consider a fixed-rate semiannual-pay equity swap where the equity payments are the total return on a... unattempted View Detail
67 Reading 30 Pricing and Valuation of Forward Commitments A company has chosen to use a 6 x 9 FRA expiring in 6 months to mitigate the risk of paying a floati... unattempted View Detail
71 Reading 30 Pricing and Valuation of Forward Commitments Which of Williams' statements regarding FRAs is most likely correct? unattempted View Detail
72 Reading 30 Pricing and Valuation of Forward Commitments Using the price and predicted MRR rates in Exhibit 1, which of the following is closest to the predi... unattempted View Detail
73 Reading 30 Pricing and Valuation of Forward Commitments Using the details shown in Exhibit 2, under the terms of the currency swap at the first settlement d... unattempted View Detail
75 Reading 30 Pricing and Valuation of Forward Commitments An index is currently 965 and the continuously compounded dividend yield on the index is 2.3%. What ... unattempted View Detail
76 Reading 30 Pricing and Valuation of Forward Commitments An index is currently 876, the risk-free rate (Rf) is 7%, and the dividend yield on the index portfo... unattempted View Detail
5 Reading 31 Valuation of Contingent Claims The value of a put option is positively related to all of the following EXCEPT: unattempted View Detail
6 Reading 31 Valuation of Contingent Claims Assume that a three-year semi-annually settled floor with a strike rate of 8% and a notional amount ... unattempted View Detail
8 Reading 31 Valuation of Contingent Claims A LIBOR based floating rate bond combined with a LIBOR based collar (a short position in an interest... unattempted View Detail
10 Reading 31 Valuation of Contingent Claims Which of the following is closest to the no-arbitrage price of the 5-month T-Bond futures contract? unattempted View Detail
14 Reading 31 Valuation of Contingent Claims Compared to the delta of a long position in a stock, the delta of an at-the-money call option on the... unattempted View Detail
17 Reading 31 Valuation of Contingent Claims Williamson is very interested in the total return swap. He asks Potter how much it would cost to ent... unattempted View Detail
21 Reading 31 Valuation of Contingent Claims Using the information about the interest rate put and the spot and forward rates in Exhibit 1, which... unattempted View Detail
27 Reading 31 Valuation of Contingent Claims Which of the following is NOT one of the assumptions of the Black-Scholes-Merton (BSM) option-pricin... unattempted View Detail
28 Reading 31 Valuation of Contingent Claims Referring to put-call parity, which one of the following alternatives would allow you to create a sy... unattempted View Detail
31 Reading 31 Valuation of Contingent Claims Which of the following is the best approximation of the gamma of an option if its delta is equal to ... unattempted View Detail
42 Reading 31 Valuation of Contingent Claims A stock is priced at 40 and the periodic risk-free rate of interest is 8%. The value of a two- perio... unattempted View Detail
44 Reading 31 Valuation of Contingent Claims Using the information in Exhibit 1, Franklin wants to compute the value of the corresponding Europea... unattempted View Detail
45 Reading 31 Valuation of Contingent Claims Franklin wants to know how the put option in Exhibit 1 behaves when all the parameters are held cons... unattempted View Detail
47 Reading 31 Valuation of Contingent Claims Franklin wants to know if the option sensitivities shown in Exhibit 2 have minimum or maximum bounds... unattempted View Detail
48 Reading 31 Valuation of Contingent Claims Suppose a forward rate agreement (FR unattempted View Detail
53 Reading 31 Valuation of Contingent Claims Bower has studied swaps extensively. However, he is not sure which of the following is the swap fixe... unattempted View Detail
54 Reading 31 Valuation of Contingent Claims Bower computes the implied volatility of a one year caplet on the 90-day LIBOR forward rates to be 1... unattempted View Detail
57 Reading 31 Valuation of Contingent Claims Calculate the USD swap fixed rate. unattempted View Detail
58 Reading 31 Valuation of Contingent Claims Using the information in Exhibits 1 and 2, which of the following is closest to the amount of the Br... unattempted View Detail
59 Reading 31 Valuation of Contingent Claims Which of the following would create a synthetic call? unattempted View Detail
61 Reading 31 Valuation of Contingent Claims Which of the following best describes how a payer swap could be replicated using a package of intere... unattempted View Detail
62 Reading 31 Valuation of Contingent Claims Which of the following best describes how a payer swap could be replicated using interest rate swapt... unattempted View Detail
64 Reading 31 Valuation of Contingent Claims Which of the following comments relating to the Black model valuation of a swaption is the most accu... unattempted View Detail
71 Reading 31 Valuation of Contingent Claims Using information in Exhibit 1, the value of $60 strike put option is closest to: unattempted View Detail
76 Reading 31 Valuation of Contingent Claims Barlow calculated the value of an American call option on the stock shown in Exhibit 2. Which of the... unattempted View Detail
77 Reading 31 Valuation of Contingent Claims Using the information in Exhibit 2, Barlow computes the value of a European put option. Which of the... unattempted View Detail
85 Reading 31 Valuation of Contingent Claims Compute the number of shares of stock necessary to create a delta neutral portfolio consisting of 10... unattempted View Detail
86 Reading 31 Valuation of Contingent Claims Compute the number of shares of stock necessary to create a delta neutral portfolio consisting of 10... unattempted View Detail
88 Reading 31 Valuation of Contingent Claims The one-year call option on Dale Corporation: unattempted View Detail
89 Reading 31 Valuation of Contingent Claims Bingly's sentiments towards the Black-Scholes-Merton (BSM) model regarding a lognormal distribution ... unattempted View Detail
96 Reading 31 Valuation of Contingent Claims In order to create a delta-neutral hedge using put option contracts, Davalos would most accurately n... unattempted View Detail
100 Reading 31 Valuation of Contingent Claims A stock is priced at 38 and the periodic risk-free rate of interest is 6%. What is the value of a tw... unattempted View Detail
104 Reading 31 Valuation of Contingent Claims BIC owns 51,750 shares of Smith & Oates. The shares are currently priced at $69. A call option on Sm... unattempted View Detail
107 Reading 31 Valuation of Contingent Claims Cal Smart wrote a 90-day receiver swaption on a 1-year MRR-based semiannual-pay $10 million swap wit... unattempted View Detail
110 Reading 31 Valuation of Contingent Claims The price of a June call option with an exercise price of $50 falls by $0.50 when the underlying non... unattempted View Detail
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