1.

Which of the the following is not a financial asset

A. Real estate B. Share
C. Knowledge D. A and C

2. Two measures of an investment's riskiness are

A. Vanance of returns and Coefficient varieance of returns.

B. Unsystematic Risk and Varianee or returns
C. Systemic risk and Finaneial risk
D. Coefficient varicance of returns and Unsystematic

3. Which of the following statements is most accurate

A. If intrinsic value > market price, an investor should buy
B. If intrinsic value> market price, an investor should sell
C. If intrinsic value < the market price, an investor should not act
D. If intrinsic value < market price, an investor should buy

4. New securities will be issued on the market:

A. Primary Market B. Secondary market
C. Over the counter (OTC) D. Primary and Secondary

5. The growth rate of dividends (g) is affected by all of the following factors
except for: A. Investor's required return (r) B. Retention rate (g)
C. Net profit D. Financial leverage

6. Company A issues a preference shares with the par value of $100, with an annual
dividend rate of 9%. Due to a change in the economy, Investor X now requires a 10%
rate of return. At what price would investor X be willing to buy this preferred stock if X
received its first dividend exactly 1 year from the time of purchase?
A. 100 $ B. 110$
C .90 $ D. 75 $

7. Assume that the consumer price index (CPI) rose 1.5% last year and that the following
securities have the following nominal returns: 2.75% for bond A and 4.75% for bond B.
What is the real rate of return on these two bonds?
A. 4,29% và 6,32% B. 1,23% và 4,29%
C. 3,20% và 1,23% D. 1,25% và 3,25%

8. Investor X bought stock A for $10. The current market price of stock A is $32.
Investor X does not want to realize the profit yet, but X is worried about the short-
term volatility of the stock market, the price of stock A will go down. Which of the
following actions should Investor X take?
A. Buy a put option on stock X
B. Buy a call option on stock X
C. Sell a call option on stock X
D. Sell a put option on stock X
9. A preferred stock has the par value of $100 and pays a fixed annual dividend of $7
what is the reasonable price of this stock, if your preferred rate of return is 11%?
A. 63,64$ B. 157,01 $
C. 904 $ D. 1450 $

10. Let arrange the following steps in the correct order of the investment process.
A. Determining investment goals and strategies; Reviewing and selecting investment
properties in the portfolio; Looking for investment opportunities in the market;
Analyzing investment opportunities; Monitoring postinvestment, and Divesting capital.
B. Determining investment goals and strategies; Looking for investment opportunities in the
market; Reviewing and selecting investment properties in the portfolio; Analyzing
investment opportunities; Monitoring post-investment, and Divesting capital.
C. Determining investment goals and strategies; Reviewing and selecting investment
properties in the portfolio; Looking for investment opportunities in the market; Monitoring
post-investment, Analyzing investment opportunities and Divesting capital.
D. Determining investment goals and strategies; Looking for investment opportunities in the
market; Analyzing investment opportunities; Reviewing and selecting investment
properties in the portfolio; Monitoring post - investment, and Divesting capital.

11. Determine how the investment fund is distributed, first across countries and then
across asset classes within that country. Which object in the top-down valuation
process is the first target.
A. Company analysis B. General economic analysis
C. Industry analysis D. Qualitative analysis

12. What is the definition of investment from the point of view of Benjamin Graham
and David Dodd?
A. Invesments based on careful analysis
B. Promising reasonable safety
C. Bringing in a satisfactory profit
D. All of them

13. An analyst looks at company A at the beginning of 2008. He assumes company A

pays a dividend of $4/share in 2009 and $5/share in 2010. He also expects the stock price
to the end of 2010 is $250. The estimated cost of equity (r) is 11%. Assume all dividends
are paid at the end of the year. What is the estimated price of this stock at the end of
2009 using the discounted dividend model?
A. $229,73 B. $206,96
C. $210,57 D. $210

14. A preferred stock has the par value of $100 and pays a fixed annual dividend of $7.
What is the fair preferred this stock if your preferred rate of return is 11%?
A. 63,64 $ B. 157,01 $
C. 904 $ D. 1450 $
15. Which of the following factors is not part of the five factors in M. Porter's industry
analysis model?
A. Pressure from customers B. Pressure from suppliers
C. Pressure from the Government D. Pressure from substitute products

16. If you are a risk-lover, which of the following instruments is best

suited for you? A. Government bonds B. Corporate bonds

C. Stocks with Beta < 1 D. Stocks with Beta > 1

17. According to the CAPM model, the expected return rate of two different stocks at the
same time is different, because:
A. Depends on the Beta of each stock
B. Depends on the industry in which each company operates
C. Always different
D. Always similar

18. The underlying stock's price is $95, an investor pays $2 to buy a call contract at a
strike price of $95. If the market price of the stock rises to $97, what is the intrinsic value
of the call contract?
A -$1 B. O
C $1 D $2

19. In the FCFE model, which of the following discount rates should
be used? A. Debt cost

B. Average interest rate

C. Average cost of capital (WACC)
D. The required return rate is calculated from the CAPM model

20. The dividend rate of a joint stock company is 25%; ROE is 15%. We can forecast
the growth rate (g) of this company from the given information as:
A. 40% B. 20%
C. 11.25% D. Not enough information to predict
21. A bond with a nominal rate of 10%, maturity of 3 years, par value of $100, a
discount rate of 7%. Duration would be:
A. 2.75 B. 3
C. 2.5 D. 1.5

22. The interest rate that equalizes the present value of all the cash flows from a bond
with the sale price of that bond is call:
A. Coupon rate B. Current interest rate
C. Yield to Maturity D. Inflation-adjusted interest rate

23. According to the credit rating agency S&P, Junk bonds are rated lower than:
According to A. BBB B. BB

C. B D CCC

24. US enterprise issues bonds in Japan and raises its funds in USD. This
bond is called: A. International Bonds B. Domestic bonds

C. European Bonds D. High yield bonds

25. An investor buys 10 bonds with a par value of $100 and a nominal interest rate of
6% per year wiu worth of $900. Every year the investor will receive the amount of
interest as:
A. 60 USD B. 600 USD
C. 570 USD D. 500 USD

26. A bond with a nominal rate of 10%, maturity of 3 years, the par value of $100, a
discount rate of 7% Will be sold for:
A. 100$ B. 107.87$
C. 110$ D. None of them in

27. A bond with Modified Duration = 2,566, if interest rates fall by 1.5 %, the bond's
price will: A. increase 3,849% B. decrease 3,849 %

C. increase by 2,756% D. decrease 2,756%

28. There are 5 types of bonds as follows: A's coupon rate = 15%, B's coupon interest
= 11%, C's coupon interest = 16%, D's coupon interest = 10%, E's coupon interest =
9%. Let's sort in descending order of Duration:
A. E>D>B>A>C B. C>A>B>D>E
C. A >C>B>D>E D. E>D>B>C>A
29. There are five types of bonds as follows: A with a maturity of 10 years, B with a
maturity of 12 years, C with a maturity of 15 years, D with a maturity of 11 years, and E
with a maturity of 9 years. Let's sort in descending order of Duration:
A. C>A>E>D>B B. B>A>D>E
C. C>B>D>A>E D. E >A>D>B>C

30. The issuer intends to issue two types of of bonds: bond X with a term of 5 years and
bond Y with a maturity of 20 years. How should the issuer set up the interest rate for
these two bonds?
A. Bond X's Yield > Bond Y's Yield
B. Bond X's Yield = Bond Y's Yield
C. Bond X's yield < Bond Y's coupon
D. Depends on the specific case

31. Which statement is the most correct:

A. Private companies can issue bonds
B. Coupon bonds pay interest at a deep discount
C. Investing in bonds is more risky than stocks
D. Government bonds are issued for the purpose of financing the state budget

32. The amount paid to own an options contract is called:

A. forward price B. exercise price
c. option premium D. future price

33. The type of investment fund that is allowed to continue to sell and buy back its fund
certificates after the initial issuance of fund certificates is called:
A. Closed-ended investment fund
B. Open-ended investment fund
C. Credit Fund
D. All of them

34. The market price of stock A is $75. A call option on stock A has an exercise price of
$70. If this call option is selling for $2.50, this call:
A. ATM B. ITM
C. OTM D. None of them

35. Which of the following statements is true for the future contract of the VN30 stock
index?
A. The buyer has the right but not the obligation to perform the contract, the seller has the
obligation but not the right to perform the contract
B. The seller has the right but not the obligation to perform the contract, the buyer has the
obligation but not the right to perform the contract
C. Clearing takes place daily
D. Clearance can only be made in securities when the contract expires

1. Which of the following securities is a money market instrument?

a. Treasury bond
b. Commercial paper
c. Treasury note
d. Municipal bond
2. If the Federal Reserve lowers the discount rate, ceteris paribus, the equilibrium
levels of funds lent will __________ and the equilibrium level of real interest
rates will ___________.
a. increase; decrease
b. increase; increase
c. decrease; increase
d. decrease; decrease

3. Compared to money market securities, capital market

securities have a. longer maturities
b. more liquidity
c. lower yields
d. less risk

4. Which one of the following terms best describes Eurodollars?

a. Dollars that have been exchanged for European currency.
b. Dollar-denominated deposits at American banks in the U.S.
c. Dollar-denominated deposits at branches of foreign banks in the U.S.
d. Dollar-denominated deposits only in European banks.
e. Dollar-denominated deposits at foreign banks and branches of American
banks outside the U.S.

5. Treasury bonds are subject to ________ risk but are essentially free of
________ risk. a. interest-rate; default
b. default; interest-rate
c. default; underwriting
d. interest-rate; underwriting

6. Capital market trading occurs in

a. none of the options
b. the primary market
c. the secondary market
d. the primary and secondary markets

7. If the economy were going into a recession, an attractive industry to invest in

would be the a. automobile and construction industries.
b. medical services industry.
c. automobile industry.
d. construction industry.

8. The _______ is defined as the present value of all cash proceeds to the investor
in the stock. a. intrinsic value
b. dividend-payout ratio
c. market-capitalization rate
d. plowback ratio

9. Low P/E ratios tend to indicate that a company will _______, ceteris
 paribus. a. grow at the same speed as the average company
b. P/E ratios are unrelated to growth.
c. grow quickly
d. grow slowly

10.A preferred stock will pay a dividend of $2.75 in the upcoming year and every
year thereafter; i.e., dividends are not expected to grow. You require a return of
10% on this stock. Use the constant growth DDM to calculate the intrinsic value
of this preferred stock. a. $0.275
b. $31.82
c. $56.25
d. $27.50

11. Dividend discount models and P/E ratios are used by __________ to try to find
mispriced securities.
a. statistical analysts
b. technical analysts
c. dividend analysts
d. fundamental analysts

12.The top-down analysis of a firm starts with

a. the industry outlook
b. the global economy.
c. the domestic economy
d. the relative value of the firm

13. ________ are analysts who use information concerning current and prospective
profitability of a firm to assess the firm's fair market value.
a. Credit analysts
b. Systems analysts
c. Fundamental analysts
d. Technical analysts

14.High P/E ratios tend to indicate that a company will _______, ceteris
paribus. a. grow at the same speed as the average company
b. not grow
c. grow quickly
d. grow slowly

15. _____ is equal to common shareholders’ equity divided by common shares

outstanding. a. Tobin's Q
b. Book value per share
c. Liquidation value per share
d. Market value per share

16.Fundamental analysis uses

a. price momentum.
b. relative strength.
 c. earnings, dividend prospects, and relative strength.
d. earnings and dividends prospects.
17. Sales Company paid a $1.00 dividend per share last year and is expected to
continue to pay out 40% of earnings as dividends for the foreseeable future. If the
firm is expected to generate a 10% return on equity in the future, and if you
require a 12% return on the stock, the value of the stock is
a. $18.67.
b. $13.00.
c. $16.67.
d. $17.67.

18.High Tech Chip Company is expected to have EPS in the coming year of $2.50.
The expected ROE is 12.5%. An appropriate required return on the stock is 11%. If
the firm has a plowback ratio of 70%, the growth rate of dividends should be
a. 8.75%.
b. 6.25%.k
c. 5.00%.
d. 6.60%.

19. JCPenney Company is expected to pay a dividend in year 1 of $1.65, a dividend

in year 2 of $1.97, and a dividend in year 3 of $2.54. After year 3, dividends are
expected to grow at the rate of 8% per year. An appropriate required return for
the stock is 11%. The stock should be worth _______ today.
a. $66.00
b. $33.00
c. $71.80
d. $40.67

20.Risk Metrics Company is expected to pay a dividend of $3.50 in the coming year.
Dividends are expected to grow at a rate of 10% per year. The risk-free rate of
return is 5%, and the expected return on the market portfolio is 13%. The stock is
trading in the market today at a price of $90.00. What is the approximate beta of
Risk Metrics's stock?
a. 1.0
b. 0.8
c. 1.1
d. 1.4

21.Zero had a FCFE of $4.5M last year and has 2.25M shares outstanding. Zero's
required return on equity is 10%, and WACC is 8.2%. If FCFE is expected to grow
at 8% forever, the intrinsic value of Zero's shares is
a. $1080.00.
b. $14.76.
c. $108.00.
d. $26.35.

22.Which of the following do technical analysts believe is a lower bound on a

stock’s price? a. Moving average.
 b. Shadow.
c. Trendline.
d. Support.

23.Which of the following indicates a buy signal to technical analysts?

a. Odd-lot buying exceeds odd-lot selling.
b. The advance-decline line is falling in a rising market.
c. The stock breaks through the moving average line from below.
d. The support level is broken.

24.In order to have confirmation of a major market trend under the Dow
Theory, the a. transportation and industrial average must confirm each
other.
b. transportation and utility averages must confirm each. other.
c. industrial and utility averages must confirm each other.
d. utility average must lead the transportation average.

25.Technical analysis reflects the idea that stock prices

a. move upward over time.
b. move randomly.
c. move inversely over time.
d. move in trends.

26.To a technician that believed in the importance of volume, a bullish signal would
occur when a. prices decrease on heavy volume.
b. prices increase on heavy volume.
c. prices decrease on light volume.
d. prices increase on light volume.

27.The ______ is a measure of the average rate of return an investor will earn if the
investor buys the bond now and holds until maturity.
a. dividend yield
b. yield to maturity
c. P/E ratio
d. current yield

28.Governments never issue stock because

a. both A and B of the above
b. neither A nor B of the above
c. the Constitution (Hi n pháp) expressly forbids it ế
d. they cannot sell ownership claims

29.A rapidly growing GDP indicates a(n) ______ economy with ______ opportunity for
a firm to increase sales.
a. expanding; ample
b. stagnant; little
c. expanding; little
 d. stagnant; ample
30.Buyers of put options anticipate the value of the underlying asset will __________,
and sellers of call options anticipate the value of the underlying asset will
________.
a. decrease; increase
b. decrease; decrease
c. increase; increase
d. increase; decrease
31.When the 50-day moving average crosses the 200-day moving average from
below on good volume,
a. this would be a bearish indicator because it signals a change to a negative
trend. b. this would be a bullish indicator because it signals a change to
a positive trend. c. this would be a bearish indicator because it signals a
change to a positive trend. d. this would be a bullish indicator because it
signals a change to a negative trend.

32. The ________ value of a bond is the amount that the issuer must pay at
maturity. a. present
b. discounted
c . face
d. market

33. Which of the following is not a characteristic of a money market

instrument? a. Liquidity premium
b. Long maturity
c. Long maturity and liquidity premium "
d. Liquidity

34. New issues of securities are sold in the ________ market(s).

a. primary and secondary
b. secondary
c. over-the-counter
d. primary

35. The Gordon mode

a. is valid only when k is less than g.
b. is valid only when g is less than k.
c. is a generalization of the perpetuity formula to cover the case of a growing perpetuity.
d. is a generalization of the perpetuity formula to cover the case of a growing
perpetuity and is valid only when g is less than k

36. is a summary of the profitability of the firm over a period of time, such as a
year. a. The income statement
b. The statement of cash flows
c. The balance sheet
d. The audit report
37. Sector rotation
a. is never worthwhile.
b. should always be carried out.
c. can be implemented without cost.
d. is shifting the portfolio more heavily toward an industry or sector that is
expected to perform well in the future.

38. If interest rates increase, business investment expenditures are likely to

______, and consumer durable expenditures are likely to _________.
a. decrease; increase
b. increase; decrease
c. increase; increase
d. decrease; decrease

39. If the economy is growing, firms with high operating leverage will
experience a. similar increases in profits as firms with low operating
leverage.
b. higher increases in profits than firms with low operating leverage. "
c. no change in profits.
d. smaller increases in profits than firms with low operating leverage.

40. According to Michael Porter, there are five determinants of competition. An

example of _____ is the threat new competitors pose to existing competitors
in an industry. a. pressure from substitute products
b. rivalry between existing competitors
c. bargaining power of buyers
d. threat of entry

41. According to Michael Porter, there are five determinants of competition. An

example of _____ is when competitors seek to expand their share of the
market.
a. pressure from substitute products
b. bargaining power of buyers
c. threat of entry
d. rivalry between existing competitors

42. SGA Consulting had a FCFE of $3.2M last year and has 3.2M shares outstanding.
SGA's required return on equity is 13%, and WACC is 11.5%. If FCFE is expected
to grow at 8.5% forever, the intrinsic value of SGA's shares is
a. $244.42.
b. $21.60.
c. $24.11. "
d. $26.56.

43. Sales Company paid a $1.00 dividend per share last year and is expected to
continue to pay out 40% of earnings as dividends for the foreseeable future. If the
firm is expected to generate a 10% return on equity in the future, and if you
 require a 12% return on the stock, the value of the stock is
a. $17.67. "
b. $16.67.
c. $13.00.
d. $18.67.

44. Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year.
Dividends are expected to grow at the rate of 6% per year. The risk-free rate of
return is 5%, and the expected return on the market portfolio is 13%. The stock of
Torque Corporation has a beta of 1.2. What is the return you should require on
Torque's stock?
a. 20%
b. 12.0%
c. 14.6% "
d. 15.6%

45. If a firm's sales decrease by 15%, and profits decrease by 20% during a recession,
the firm's operating leverage (DOL) is
a. 0.75
b. −5
c. 1.33 "
d. 5

46. Which of the following is not true regarding the Dow Theory?
a. It has a very high success rate. "
b. It does not forecast how long a movement will last.
c. It is subject to many criticisms.
d. It is intended to forecast the start of a primary movement.

47.A technical analyst would consider the following a strong buy signal:
a. a graph begins to trade in a flat trend after it breaks out of its rising trend channel.
b. a graph of declining prices ends in a trough followed by an upward trend
that breaks through the declining trend channel. "
c. a graph of increasing prices ends in a peak followed by a downward trend that
breaks through the rising trend channel.
d. a graph begins to trade in a declining trend after it breaks out of its flat trend channel.

48. A price range at which technicians would expect a substantial increase in the
demand for a stock is called
a. resistance level.
b. support level. "
c. demand threshold.
d. resistance limit.

49. Which of the following is most closely associated with the terms
“primary trend,” “intermediate trend,” and “short-term trend”?
a. Bar chart.
b. Candlestick chart.
 c. Channel.
d. Dow Theory.
50.Consider a 5-year bond with a 10% coupon that has a present yield to maturity
of 8%. If interest rates remain constant, one year from now, the price of this
bond will be a. higher.
b. the same.
c. lower. "
d. $1,000.

51. Consider two bonds, A and B. Both bonds presently are selling at their par value
of $1,000. Each pays interest of $120 annually. Bond A will mature in five years,
while bond B will mature in six years. If the yields to maturity on the two bonds
change from 12% to 10%.
a. both bonds will decrease in value, but bond A will decrease more than bond
B. b. both bonds will decrease in value, but bond B will decrease more than
bond A. c. both bonds will increase in value, but bond B will increase
more than bond A. " d. both bonds will increase in value, but bond A will
increase more than bond B.

 Of the following investments, ________ is (are) considered the safest.

a. corporate bonds
b. U.S. agency issues
c. Treasury bills "
d. commercial paper

52.A coupon bond that pays interest annually has a par value of $1,000, matures in
five years, and has a yield to maturity of 10%. The intrinsic value of the bond
today will be …… if the coupon rate is 12%.
( 1075 )

53.At what point would an investor be indifferent between a GM corporate bond

yielding 9.5 percent and a tax-free municipal bond of equal financial strength if
the investor's marginal tax rate is 25 percent? ( 7,13% )

54.Paper Express Company has a balance sheet which lists $85 million in assets,
$40 million in liabilities, and $45 million in common shareholders'equity. It has
1,400,000 common shares outstanding. The replacement cost of the assets is
$115 million. The market share price is $90. What is Paper Express's book value
per share? ( 32.14 )
1) A top down analysis of a firm starts with
___________. A. the relative value of the firm
B. the absolute value of the firm
C. the domestic economy
 D. the global economy
E. the industry outlook
2) An example of a highly cyclical industry is
_______. A. the automobile industry
B. the tobacco industry
C. the food industry
D. the automobile industry and the tobacco industry
E. the tobacco industry and the food
3) Demand-side economics is concerned with
______. A. government spending and tax levels
B. monetary policy
C. fiscal policy
D. government spending and tax levels and
monetary policy E. government spending and tax
levels,
4) The most widely used monetary tool is
__________. A. altering the discount rate
B. altering the reserve requirements
C. open market operations
D. altering marginal tax rates
E. None of these is correct
5) The "real", or inflation-adjusted, exchange
rate, is A. the balance of trade.
B. the budget deficit.
C. the purchasing power ratio.
D. unimportant to the U.S. economy.
E. None of these is correct.
6) Monetary policy is determined by
A. government budget decisions.
B. presidential mandates.
C. the board of Governors of the Federal Reserve
System. D. congressional actions.
E. None of these is correct.
7) A trough is _______.
A. a transition from an expansion in the business cycle to the start of a
contraction
B. a transition from a contraction in the business cycle to the
start of an expansion
C. a depression that lasts more than three years
D. only something used by farmers to feed pigs and not an investment term
8) A peak is _______.
A. a transition from an expansion in the business cycle to the
start of a contraction
B. a transition from a contraction in the business cycle to the
start of an expansion
 C. a depression that lasts more than three years
D. only a feature of geography and not an investment term
9) If the economy is growing, firms with high operating
leverage will experience _________.
A. higher increases in profits than firms with low operating
leverage B. similar increases in profits as firms with low
operating leverage C. smaller increases in profits than firms with
low operating leverage D. no change in profits
E. None of these is correct.
10)If the economy is growing, firms with low operating leverage will
experience _________.
A. higher increases in profits than firms with high operating
leverage B. similar increases in profits as firms with high operating
leverage C. smaller increases in profits than firms with high
operating leverage D. no change in profits

11)If the economy is shrinking, firms with high operating

leverage will experience _________.
A. higher decreases in profits than firms with low operating
leverage B. similar decreases in profits as firms with low
operating leverage C. smaller decreases in profits than firms with
low operating leverage D. no change in profits
12)If the economy is shrinking, firms with low operating leverage will
experience _________.
A. higher decreases in profits than firms with high operating
leverage B. similar decreases in profits as firms with high operating
leverage C. smaller decreases in profits than firms with high
operating leverage D. no change in profits
13)Industrial production refers to ________.
A. the amount of personal disposable income in the economy
B. the difference between government spending and government
revenues C. the total manufacturing output in the economy
D. the total production of goods and services in the economy
E. None of these is correct
14)GDP refers to ________.
A. the amount of personal disposable income in the economy
B. the difference between government spending and government
revenues C. the total manufacturing output in the economy
D. the total production of goods and services in the
economy E. None of these is correct.
15)A declining GDP indicates a(n) ______ economy with ______
opportunity for a firm to increase sales.
A. stagnant; little
B. stagnant; ample
C. expanding; little
D. expanding; ample
16) firm in the early stages of the industry life cycle will likely have
_______. A. high market penetration
B. high risk
C. rapid growth
D. high market penetration and rapid growth
E. high risk and rapid growth
17)Assume the U. S. government was to decide to increase the
budget deficit. This action will most likely cause __________ to
increase.
A. interest rates
B. government borrowing
C. unemployment
D. interest rates and government borrowing
E. None of these is correct.
18)Assume that the Federal Reserve decreases the money supply.
This action will cause ________ to decrease.
A. interest rates
B. the unemployment rate
C. investment in the economy
D. trade balance
19)The North American Industry Classification System (NAICS)
codes A. are for firms that operate in the NAFTA region.
B. group firms by industry.
C. are a perfect classification system for firms.
D. are for firms that operate in the NAFTA region and group
firms by industry.
E. are for firms that operate in the NAFTA region and are a
perfect classification system
20)Fiscal policy is difficult to implement quickly because
A. it requires political negotiations.
B. much of government spending is nondiscretionary and cannot be
changed. C. increases in tax rates affect consumer spending
gradually.
D. it requires political negotiations and much of government
spending is nondiscretionary and cannot be changed.
E. it requires political negotiations and increases in
21)Inflation
A. is the rate at which the general level of prices is increasing.
B. rates are high when the economy is considered to be
"overheated." C. is unrelated to unemployment rates.
D. is the rate at which the general level of prices is increasing;
and rates are high when the economy is considered to be
"overheated." E. is the rate at which the general level of prices is
increasing; and is unrelated to unemployment
22)Classifying firms into groups, such as _________ provides an
alternative to the industry life cycle.
 A. slow-growers
B. stalwarts
C. countercyclicals
D. slow-growers and stalwarts
E. slow-growers and
23)Which of the following are not examples of defensive
industries? A. Food producers.
B. Durable goods producers.
C. Pharmaceutical firms.
D. Public utilities.
E. Durable goods producers and
24)Which of the following are examples of defensive
industries? A. Food producers.
B. Durable goods producers.
C. Pharmaceutical firms.
D. Public utilities.
E. Food producers, pharmaceutical fims and public utilities
25)The industry life cycle is described by which of the following
stage(s)? A. Start-up.
B. Consolidation.
C. Absolute decline.
D. Start-up and consolidation.
E. Start-up, consolidation and
26)In the start-up stage of the industry life cycle
A. it is difficult to predict which firms will succeed and which
firms will fail.
B. industry growth is very rapid.
C. firms pay a high level of dividends.
D. it is difficult to predict which firms will succeed and which
firms will fail and industry growth is very rapid.
E. industry growth is very rapid and firms pay a
27)In the consolidation stage of the industry life-cycle
A. it is difficult to predict which firms will succeed and which firms will
fail. B. industry growth is very rapid.
C. the performance of firms will more closely track the
performance of the overall industry.
D. it is difficult to predict which firms will succeed and which firms will
fail and industry growth is very rapid.
E. industry growth is very rapid and the performance of firms will
more closely track the performance of the overall industry.
28)In the maturity stage of the industry life cycle
A. the product has reached full potential.
B. profit margins are narrower.
C. producers are forced to compete on price to a greater extent. D.
the product has reached full potential and profit margins are
narrower. E. the product has reached full potential, profit
 margins are narrower, and producers are forced to compete
on price to a greater extent.
29)In the decline stage of the industry life cycle
A. the product may have reached obsolescence.
B. the industry will grow at a rate less than the overall
economy. C. the industry may experience negative
growth.
D. the product may have reached obsolescence and the industry will
grow at a rate less than the overall economy.
E. the product may have reached obsolescence, the industry will
grow at a rate less than the overall economy, and the industry
may experience negative growth
30)A variety of factors relating to industry structure affect the
performance of the firm, including
A. threat of entry.
B. rivalry between existing competitors.
C. the state of the economy.
D. threat of entry and the state of the economy.
E. threat of entry and rivalry between existing cometitors
31)The process of estimating the dividends and earnings that can be
expected from the firm based on determinants of value is called
A. business cycle forecasting.
B. macroeconomic forecasting.
C. technical analysis.
D. fundamental analysis.
32)The life cycle stage in which industry leaders are likely to
emerge is the A. start-up stage.
B. maturity stage.
C. consolidation stage.
D. relative decline stage.
33)Investment manager Peter Lynch refers to firms that are in
bankruptcy or soon might be as
A. slow growers.
B. stalwarts.
C. cyclicals.
D. asset plays.
E. turnarounds

34)A top-down analysis of a firm's prospects starts with

A. an examination of the firm's industry.
B. an evaluation of the firm's position within its industry.
C. a forecast of interest rate movements.
D. an assessment of the broad economic environment.
E. the application of the CAPM to find the firm's theoretical return.
35)In recent years, P/E multiples for S&P500
 companies have A. ranged from -1 to -10.
B. ranged from 1 to 8.
C. ranged from 6 to 10.
D. ranged from 12 to 25.
E. ranged from 20 to more than 50.
36)The industry with the highest ROE in 2009 was
A. food.
B. data storage.
C. business software.
D. computer systems.
E. integrated oil & gas.
37)The industry with the lowest ROE in 2009 was
A. food.
B. data storage.
C. business software.
D. iron/steel.
E. integrated oil & gas.
38)The industry with the lowest return in 2009 was
A. renewable energy equipment.
B. oil equipment.
C. health care.
D. brokerage.
E. banking.
39)The industry with the highest return in 2009 was
A. home construction.
B. travel and tourism.
C. health care.
D. brokerage.
E. banking.
40)Investors can ______ invest in an industry with the highest
expected return by purchasing _____.
A. most easily; industry-specific iShares
B. not; industry-specific iShares
C. most easily; industry-specific ADRs
D. not; individual stocks
E. None of these is correct.
41)Which of the following are key economic stats that are used to
describe the state of the macroeconomy
I) GDP
II) the unemployment rate
III) inflation
IV) consumer sentiment
V) the budget deficit
A. I, II, and V
B. I, III, and V
C. I, II, and III
D. I, II, III, and V
E. I, II, III, IV, V
42)An example of a positive demand shock is
A. a decrease in the money supply.
B. a decrease in government spending.
C. a decrease in foreign export demand.
D. a decrease in the price of imported oil.
E. a decrease in tax rates.
43)An example of a negative demand shock is
A. a decrease in the money supply.
B. a decrease in government spending.
C. an increase in foreign export demand.
D. a decrease in the price of imported oil.
E. a decrease in tax rates.

44)An example of a negative demand shock is

A. a decrease in the money supply.
B. a decrease in government spending.
C. an increase in foreign export demand.
D. a decrease in the price of imported oil.
E. a decrease in the money supply and a decrease in
government spending.
45)During which stage of the industry life cycle would a firm
experience stable growth in sales?
A. Consolidation
B. Relative Decline
C. Maturity
D. Start-up
E. Stabilization
46)Sector rotation
A. should always be carried out.
B. is never worthwhile.
C. is shifting the portfolio more heavily toward an industry or
sector that is expected to perform well in the future.
D. can be implemented costlessly.
E. None of these is correct.
47)According to Michael Porter, there are five determinants of
competition. An example of _____ is when new entrants to an
industry put pressure on prices and profits.
A. Threat of Entry
B. Rivalry between Existing Competitors
C. Pressure from Substitute Products
D. Bargaining power of Buyers
E. Bargaining power of Suppliers
48)According to Michael Porter, there are five determinants of
competition. An example of _____ is when competitors seek to
expand their share of the market.
A. Threat of Entry
B. Rivalry between Existing Competitors
 C. Pressure from Substitute Products
D. Bargaining power of Buyers
E. Bargaining power of Suppliers
49)According to Michael Porter, there are five determinants of
competition. An example of _____ is when the availability limits
the prices that can be charged to customers.
A. Threat of Entry
B. Rivalry between Existing Competitors
C. Pressure from Substitute Products
D. Bargaining power of Buyers
E. Bargaining power of Suppliers
50)According to Michael Porter, there are five determinants of
competition. An example of _____ is when a buyer purchases a
large fraction of an industry's output and can demand price
concessions.
A. Threat of Entry
B. Rivalry between Existing Competitors
C. Pressure from Substitute Products
D. Bargaining power of Buyers
E. Bargaining power of Suppliers
51)Assume the U. S. government was to decide to increase the
budget deficit. This action will most likely cause __________ to
increase.
A. interest rates
B. government borrowing
C. unemployment
D. both interest rates and government borrowing
E. None of these is correct.
52)An example of a defensive industry is _______.
A. the automobile industry
B. the tobacco industry
C. the food industry
D. both the automobile industry and the tobacco industry
E. both the tobacco industry and the food industry

1. ..........is a summary of the profitability of the firm over a period of

time, such as a year.
a. The income statement
b. The statement of cash flows
c. The balance sheet
d. The audit report
2. Which of the following securities is a money market instrument?

a. Treasury bond
b. Commercial paper
c. Treasury note
 d. Municipal bond

3. If the Federal Reserve lowers the discount rate, ceteris paribus, the
equilibrium levels of funds lent will __________ and the equilibrium
level of real interest rates will ___________.

a. increase; decrease
b. increase; increase
c. decrease; increase
d. decrease; decrease
4. If interest rates increase, business investment expenditures
are likely to ______, and consumer durable expenditures are
likely to _________. a. decrease; increase
b. increase; decrease
c. increase; increase
d. decrease; decrease

5. If the economy is growing, firms with high operating leverage will

experience: a. similar increases in profits as firms with low operating
leverage. b. higher increases in profits than firms with low operating
leverage. " c. no change in profits.
d. smaller increases in profits than firms with low operating leverage

6. New issues of securities are sold in the ________

market(s). a. primary and secondary
b. secondary
c. over-the-counter
d. Primary

7. Sector rotation
a. is never worthwhile.
b. should always be carried out.
c. can be implemented without cost.
d. is shifting the portfolio more heavily toward an industry or
sector that is expected to perform well in the future

8. Compared to money market securities, capital market securities have:

a. longer maturities
b. more liquidity
c. lower yields
 d. less risk

9. Which one of the following terms best describes Eurodollars?

a. Dollars that have been exchanged for European currency.

b. Dollar-denominated deposits at American banks in the U.S.
c. Dollar-denominated deposits at branches of foreign banks in the U.S.
d. Dollar-denominated deposits only in European banks.
e. Dollar-denominated deposits at foreign banks and branches of
American banks outside the U.S.

11. Which of the following is not a characteristic of a money market

instrument? a. Liquidity premium
b. Long maturity
c. Long maturity and liquidity premium "
d. Liquidity
12. If a firm's sales decrease by 15%, and profits decrease by 20%
during a recession, the firm's operating leverage (DOL) is
a. 0.75
b. -5
c. 1.33
d. 5

13. Capital market trading occurs in:

a. none of the options

b. the primary market
c. the secondary market
d. the primary and secondary markets

14. If the economy were going into a recession, an attractive industry to

invest in would be the:

a. automobile and construction industries.

b. medical services industry.
c. automobile industry.
d. construction industry.

15. The _______ is defined as the present value of all cash

proceeds to the investor in the stock.

a. intrinsic value
 b. dividend-payout ratio
c. market-capitalization rate
d. plowback ratio

16. The ________ value of a bond is the amount that the issuer
must pay at maturity.
a. present
b. discounted
c. face "
d. market

17. Low P/E ratios tend to indicate that a company will _______, ceteris paribus.

a. grow at the same speed as the average company

b. P/E ratios are unrelated to growth.
c. grow quickly
d. grow slowly

18. A preferred stock will pay a dividend of $2.75 in the upcoming

year and every year thereafter; i.e., dividends are not expected to
grow. You require a return of 10% on this stock. Use the constant
growth DDM to calculate the intrinsic value of this preferred stock.

a. $0.275
b. $31.82
c. $56.25
d. $27.50

19. Dividend discount models and P/E ratios are used by __________
to try to find mispriced securities.

a. statistical analysts b. technical analysts c. dividend analysts

d. fundamental analysts

20. The top-down analysis of a firm starts with:

a. the industry outlook b. the global economy. c. the domestic
economy d. the relative value of the firm

21. ________ are analysts who use information concerning

current and prospective profitability of a firm to assess the
firm's fair market value.
 a. Credit analysts b. Systems analysts c. Fundamental
analysts d. Technical analysts
22. The Gordon model
a. is valid only when k is less than g.
b. is valid only when g is less than k.
c. is a generalization of the perpetuity formula to cover the case of a
growing perpetuity.
d. is a generalization of the perpetuity formula to cover the case of a
growing perpetuity and is valid only when g is less than k. "

23. High P/E ratios tend to indicate that a company will _______,
ceteris paribus.

a. grow at the same speed as the average company

b. not grow
c. grow quickly
d. grow slowly

24. _____ is equal to common shareholders’ equity divided by

common shares outstanding.

a. Tobin's Q b. Book value per share c. Liquidation value per

share d. Market value per share

25. Fundamental analysis uses

a. price momentum.
b. relative strength.
c. earnings, dividend prospects, and relative strength.
d. earnings and dividends prospects.

26. Sales Company paid a $1.00 dividend per share last year and is
expected to continue to pay out 40% of earnings as dividends for the
foreseeable future. If the firm is expected to generate a 10% return on
equity in the future, and if you require a 12% return on the stock, the
value of the stock is

a. $18.67. b. $13.00.
c. $16.67. d. $17.67.
27. High Tech Chip Company is expected to have EPS in the coming
year of $2.50. The expected ROE is 12.5%. An appropriate required
return on the stock is 11%. If the firm has a plowback ratio of 70%, the
growth rate of dividends should be
 a. 8.75% b. 6.25%.
c. 5.00%. d. 6.60%.

28. JCPenney Company is expected to pay a dividend in year 1 of

$1.65, a dividend in year 2 of $1.97, and a dividend in year 3 of $2.54.
After year 3, dividends are expected to grow at the rate of 8% per
year. An appropriate required return for the stock is 11%. The stock
should be worth _______ today.

a. $66.00 b. $33.00
c. $71.80 d. $40.67

29. Consider a 5-year bond with a 10% coupon that has a present yield
to maturity of 8%. If interest rates remain constant, one year from
now, the price of this bond will be
a. higher b. the same.
c. lower. " d. $1,000

30. Of the following investments, ________ is (are) considered

the safest. a. corporate bonds b. U.S. agency issues
c. Treasury bills " d. commercial paper

31. Consider two bonds, A and B. Both bonds presently are selling at
their par value of $1,000. Each pays interest of $120 annually. Bond A
will mature in five years, while bond B will mature in six years. If the
yields to maturity on the two bonds change from 12% to 10%.
a. both bonds will decrease in value, but bond A will decrease more than
bond B. b. both bonds will decrease in value, but bond B will decrease more
than bond A. c. both bonds will increase in value, but bond B will
increase more than bond A. d. both bonds will increase in value, but bond
A will increase more than bond B

32. Risk Metrics Company is expected to pay a dividend of $3.50 in the

coming year. Dividends are expected to grow at a rate of 10% per
year. The risk-free rate of return is 5%, and the expected return on the
market portfolio is 13%. The stock is trading in the market today at a
price of $90.00. What is the approximate beta of Risk Metrics's stock?

a. 1.0 b. 0.8
c. 1.1 d. 1.4

33. Zero had a FCFE of $4.5M last year and has 2.25M shares
outstanding. Zero's required return on equity is 10%, and WACC is
8.2%. If FCFE is expected to grow at 8% forever, the intrinsic value
of Zero's shares is

a. $1080.00. b. $14.76.
 c. $108.00. d. $26.35.
34. SGA Consulting had a FCFE of $3.2M last year and has 3.2M shares
outstanding. SGA's required return on equity is 13%, and WACC is
11.5%. If FCFE is expected to grow at 8.5% forever, the intrinsic value
of SGA's shares is a. $244.42. b. $21.60.
c. $24.11. " d. $26.56

35. Which of the following do technical analysts believe is a lower

bound on a stock’s price?

a. Moving average. b. Shadow.

c. Trendline. d. Support.

36. Which of the following indicates a buy signal to technical analysts?

a. Odd-lot buying exceeds odd-lot selling.

b. The advance-decline line is falling in a rising market.
c. The stock breaks through the moving average line from below.
d. The support level is broken.

37. A technical analyst would consider the following a strong buy

signal: a. a graph begins to trade in a flat trend after it breaks out of its rising
trend channel. b. a graph of declining prices ends in a trough followed
by an upward trend that breaks through the declining trend channel. "
c. a graph of increasing prices ends in a peak followed by a downward
trend that breaks through the rising trend channel.
d. a graph begins to trade in a declining trend after it breaks out of its
flat trend channel.

38. Which of the following is most closely associated with the terms
“primary trend,” “intermediate trend,” and “short-term trend”?
a. Bar chart. b. Candlestick chart. c. Channel. d. Dow Theory.

39. A price range at which technicians would expect a substantial

increase in the demand for a stock is called
a. resistance level. b. support level. " c. demand threshold.
d. resistance limit.

40. In order to have confirmation of a major market trend under

the Dow Theory, the:

a. transportation and industrial average must confirm

each other. b. transportation and utility averages must confirm
 each. other.
c. industrial and utility averages must confirm each other.
d. utility average must lead the transportation average.

41. Which of the following is not true regarding the Dow

Theory? a. It has a very high success rate. "
b. It does not forecast how long a movement will last.
c. It is subject to many criticisms.
d. It is intended to forecast the start of a primary movement.
42. According to Michael Porter, there are five determinants of
competition. An example of _____ is the threat new competitors pose
to existing competitors in an industry.
a. pressure from substitute products
b. rivalry between existing competitors
c. bargaining power of buyers
d. threat of entry

43. Technical analysis reflects the idea that stock prices:

a. move upward over time. b. move randomly. c. move

inversely over time. d. move in trends.

44. To a technician that believed in the importance of volume, a

bullish signal would occur when

a. prices decrease on heavy volume.

b. prices increase on heavy volume.
c. prices decrease on light volume.
d. prices increase on light volume.

45. The ______ is a measure of the average rate of return an investor

will earn if the investor buys the bond now and holds until maturity.

a. dividend yield b. yield to maturity c. P/E ratio d. current

yield

46. According to Michael Porter, there are five determinants of

competition. An example of _____ is when competitors seek to expand
their share of the market. a. pressure from substitute products
b. bargaining power of buyers
c. threat of entry
d. rivalry between existing competitors "
47. Governments never issue stock because:
 a. both A and B of the above
b. neither A nor B of the above
c. the Constitution (Hi n pháp) expressly forbids it ế
d. they cannot sell ownership claims

48. A rapidly growing GDP indicates a(n) ______ economy with

______ opportunity for a firm to increase sales.

a. expanding; ample b. stagnant; little c. expanding; little d.

stagnant; ample

49. Buyers of put options anticipate the value of the underlying

asset will __________, and sellers of call options anticipate the
value of the underlying asset will ________.

a. decrease; increase b. decrease; decrease c. increase;

increase d. increase; decrease

50. When the 50-day moving average crosses the 200-day moving
average from below on good volume,

a. this would be a bearish indicator because it signals a change to a negative trend.

b. this would be a bullish indicator because it signals a change to
a positive trend.
c. this would be a bearish indicator because it signals a change to a
positive trend. d. this would be a bullish indicator because it signals a
change to a negative trend.

51. Torque Corporation is expected to pay a dividend of $1.00 in the

upcoming year. Dividends are expected to grow at the rate of 6% per
year. The risk-free rate of return is 5%, and the expected return on the
market portfolio is 13%. The stock of Torque Corporation has a beta
of 1.2. What is the return you
should require on Torque's stock?
a. 20% b. 12.0%
c. 14.6% " d. 15.6%

52. A coupon bond that pays interest annually has a par value of
$1,000, matures in five years, and has a yield to maturity of 10%. The
intrinsic value of the bond today will be …… if the coupon rate is 12%.

 1075
53. At what point would an investor be indifferent between a GM
corporate bond yielding 9.5 percent and a tax-free municipal bond
of equal financial strength if the investor's marginal tax rate is 25
percent?
 7,13%

54. A coupon bond that pays interest of $100 annually has a par value
of $1,000, matures in five years, and is selling today at a $72 discount
from par value. The yield to maturity on this bond approximately is:
 12%

55. Calculate the yield to maturity of a zero-coupon bond with a face

value of $1000, maturing in 15 years and selling for a price of
$525.75. 4.38

56. Paper Express Company has a balance sheet which lists $85 million
in assets, $40 million in liabilities, and $45 million in common
shareholders'equity. It has 1,400,000 common shares outstanding. The
replacement cost of the assets is $115 million. The market share price
is $90. What is Paper Express's book value per share?
 32.14

57. Sure Tool Company is expected to pay a dividend of $2 in the

upcoming year. The risk-free rate of return is 4%, and the expected
return on the market portfolio is 14%. Analysts expect the price of Sure
Tool Company shares to be $22 a year from now. The beta of Sure Tool
Company's stock is 1.25. The market's required rate of return on Sure's
stock is
 16.5%

1. A fixed-income security pays.

a. a fixed stream of income or a stream of income that is determined
according to a specified formula for the life of the security.
b. a fixed or variable income stream at the option of the owner.
c. a variable level of income for owners on a fixed income.
d. a fixed level of income for the life of the owner.
2. _______ are examples of financial intermediaries.
a. All of the options b. Investment companies c. Insurance companies
d. Commercial banks

3. The most commonly quoted index is the Dow Jones Industrial

Average (DJIA), an index based on the performance of the stocks
of ________ large companies.
a. 40 b. 35 c. 25 d. 30

4. Governments never issue stock because:

a. neither A nor B of the above
b. the Constitution (Hi n pháp) expressly forbids it ế
c. both A and B of the above
d. they cannot sell ownership claims
5. Capital market trading occurs in:
a. the secondary market b. none of the options c. the primary
and secondary markets d. the primary market

6. Preferred stockholders hold a claim on assets that has priority over

the claims of
a. bondholders, but after that of common stockholders
b. both common stockholders and bondholders
c. neither common stockholders nor bondholders
d. common stockholders, but after that of bondholders

7__________ is a summary of the profitability of the firm over a period

of time, such as a year.
a. The statement of cash flows b. The income statement c. The audit
report d. The balance sheet

8. A firm has a market to book value ratio that is equivalent to the

industry average and an ROE that is less than the industry
average, which implies a. the firm has a higher P/E ratio than other
firms in the industry. b. the firm is more profitable than other firms in the
industry.
c. the firm is utilizing its assets more efficiently than other firms in the
industry. d. the firm is more likely to avoid insolvency in the short run than
other firms in the industry. (lo i) ạ
9. If interest rates increase, business investment expenditures are
likely to ______, and consumer durable expenditures are likely to
_________. a. increase; increase b. increase; decrease
c. decrease; decrease d. decrease; increase

10. ________ are analysts who use information concerning

current and prospective profitability of a firm to assess the
firm's fair market value. a. Fundamental analysts b. Systems
analysts
c. Technical analysts d. Credit analysts

11. A rapidly growing GDP indicates a(n) ______ economy with

______ opportunity for a firm to increase sales.
a. stagnant; little b. expanding; ample c. stagnant; ample d.
expanding; little

12. An example of a positive demand shock is:

a. a decrease in tax rates.
b. a decrease in government spending.
c. a decrease in the money supply.
d. a decrease in foreign export demand.

13. Which of the financial statements recognizes only transactions in

which cash changes hands?
a. Income statement b. Statement of cash flows c. Balance sheet d.
Balance sheet and income statement

14. Proceeds from a company's sale of stock to the public are included
in a. additional paid-in capital. b. retained earnings. c. par value. d. par
value and additional paid-in capital.

15. A firm has a higher quick (or acid test) ratio than the industry
average, which implies
a. the firm may be less profitable than other firms in the industry. b. the firm
is more likely to avoid insolvency in the short run than other firms in
the industry, and the firm may be less profitable than other firms in the
industry.
c. the firm has a higher P/E ratio than other firms in the industry.
d. the firm is more likely to avoid insolvency in the short run than other firms
in the industry.

16. Sector rotation

a. can be implemented without cost.
b. is never worthwhile.
c. is shifting the portfolio more heavily toward an industry or
sector that is expected to perform well in the future.
d. should always be carried out.

17. SGA Consulting had a FCFE of $3.2M last year and has 3.2M shares
outstanding. SGA's required return on equity is 13%, and WACC is
11.5%. If FCFE is expected to grow at 8.5% forever, the intrinsic value
of SGA's shares is a. $244.42. b. $26.56. c. $24.11. d. $21.60

18. Each of two stocks, A and B, are expected to pay a dividend of $5

in the upcoming year. The expected growth rate of dividends is 10%
for both stocks. You require a rate of return of 11% on stock A and a
return of 20% on stock B. The intrinsic value of stock A:
a. will be less than the intrinsic value of stock B.
b. cannot be calculated without knowing the market rate of
return. c. will be the same as the intrinsic value of stock B.
d. will be greater than the intrinsic value of stock B.

19. If a firm's sales decrease by 15%, and profits decrease by 20%

during a recession, the firm's operating leverage (DOL) is
a. 1.33 b. −5 c. 0.75 d. 5

20. Torque Corporation is expected to pay a dividend of $1.00 in the

upcoming year. Dividends are expected to grow at the rate of 6% per
year. The risk-free rate of return is 5%, and the expected return on the
market portfolio is 13%. The stock of Torque Corporation has a beta
of 1.2. What is the return you should require on Torque's stock?
a. 12.0% b. 20% c. 15.6% d. 14.6%

21. You are considering acquiring a common stock that you would like
to hold for one year. You expect to receive both $0.75 in dividends and
$16 from the sale of the stock at the end of the year. The maximum
price you would pay for the stock today is _____ if you wanted to earn
a 12% return.
a. $14.96 b. $26.52 c. $23.91 (lo i) ạ d. $27.50
22. To a technician that believed in the importance of volume, a
bullish signal would occur when
a. prices increase on light volume.
b. prices decrease on light volume.
c. prices decrease on heavy volume.
d. prices increase on heavy volume

23. The two primary tools of a technical analyst are:

a. price and technical indicators.
b. price and volume.
c. level of the market index and volume.
d. economic indicators and level of the market index

24. Which type of chart includes daily high price, low price, opening
price, and closing price?
a. Bar chart. (lo i) ạ b. Moving average chart. c. Point-and-figure
chart. d. Candlestick chart.

25. Calculate a four-day moving average for Day 4 based on the daily
closings for the Dow Jones Industrial Average given as follows: Day
1 (Price = 10500), Day 2 (price = 10025), Day 3 (price = 10125), Day 4
(price = 10210) a. 10,215 b. 10,500 c. 10,000 d. 10,210

26. Which of the following is true regarding the resistance

level? a. Resistance levels usually develop after a stock
reaches a new low. b. It is the level at which a significant
decrease in demand is expected. c. Resistance levels tend to
develop due to profit taking.
d. It is the level at which a significant increase in supply is expected.

27. Accrued interest

a. is quoted in the bond price in the financial press.
b. is quoted in the bond price in the financial press and must be paid by the
buyer of the bond and remitted to the seller of the bond. (LO I) Ạ
c. must be paid to the broker for the inconvenience of selling bonds between
maturity dates.
d. must be paid by the buyer of the bond and remitted to the seller of the bond.

28. Ceteris paribus, the price and yield on a bond are

a. not related.
b. negatively related.
c. positively related.
d. sometimes positively and sometimes negatively related.

29. A ___________ bond is a bond where the bondholder has the right
to cash in the bond before maturity at a specified price after a specific
date. a. coupon b. callable
c. Treasury d. put e. zero-coupon

30. Of the following investments, ________ is (are) considered

the safest. a. Treasury bills b. corporate bonds
c. U.S. agency issues d. commercial paper

31. A coupon bond that pays interest annually has a par value of
$1,000, matures in five years, and has a yield to maturity of coupon
10%. The intrinsic value of the bond today will be …… if the coupon
rate is 7%. coupon a. $1,123.01 b. $620.92 c. $886.28 d. $712.99

32. A coupon bond that pays interest annually has a par value of
$1,000, matures in six years, and has a yield to maturity of coupon 11%.
The intrinsic value of the bond today will be …… if the coupon rate is
7.5%. coupon a. $712.99 b. $886.28 c. $851.93 d. $1,123.01 (LO I) Ạ

33. Calculate the yield to maturity of a zero-coupon bond with a face

value of $1000, maturing in 15 years and selling for a coupon price
of $525.75. a. 4.38 percent b. 8.74 percent (LO I) Ạ c. 5.62 percent d.
15.26 percent

34. At what point would an investor be indifferent between a GM

corporate bond yielding 9.5 percent and a tax-free municipal bond
of equal financial strength if the investor's marginal tax rate is 25
percent?
a. 11.87 percent b. 7.13 percent
c. 12.67 percent d. 7.60 percent

35. An American call option allows the buyer to

a. sell the underlying asset at the exercise price on or before the expiration
date. b. buy the underlying asset at the exercise price on or before the
expiration date.
c. sell the underlying asset at the exercise price on or before the expiration
date and sell the option in the open market prior to expiration.
d. sell the option in the open market prior to expiration

36. The maximum loss a buyer of a stock call option can suffer is
equal to a. the striking price minus the stock price.
b. the stock price.
c. the stock price minus the value of the call. (LO I) Ạ
d. the call premium.
37. Buyers of put options anticipate the value of the underlying
asset will __________, and sellers of call options anticipate the
value of the underlying asset will ________.
a. increase; decrease b. decrease; increase c. decrease;
decrease d. increase; increase

38. In a futures contract, the futures price is:

a. determined independently by the provider of the underlying
asset. b. determined by the buyer and the seller when they
initiate the contract. c. determined by the futures exchange.
d. determined by the buyer and the seller when the delivery of the
commodity takes place. (LO I) Ạ

39. A trader who has a …… position in wheat futures believes the price
of wheat will …… in the future.
a. long; stay the same b. long; decrease c. short; increase d.
long; increase

40. You sold one silver future contract at $3 per ounce. What would
be your profit (loss) at maturity if the silver spot price at that time is
$4.10 per ounce? Assume the contract size is 5,000 ounces and
there are no transactions costs. a. $5,500 profit (LO I) Ạ b. 5.50 profit c.
$5,500 loss d. $5.50 loss

TH Y QUANG Ầ

Câu 1: Which of the following valuation methods is the most appropriate

for SOE equalization?
A. Discount cash flow model B. P/E
C. Asset valuation D. None of above Câu 2: Mistakes in
investment include:
A. "Fear" to cut losses B. Listen to celebrities C. Realizing
profits too early D. All of above
Câu 3: Based on perspective: Compared to the value of other firms. Which
pricing method do
A. P/E B. Asset valuation C. Discount Cash Flow Model D.
Dividend discour
Câu 4: Assume that retention ratio is 65%, ROE is 30.99% and discount rate
is 25%, please calll intrinsic P/E
A. 8.55 B. 8.66 C. 7.00 D. 7.50
Câu 5: A bond with a nominal rate of 10%, maturity of 3 years, par value
of $100, and a disco 7%. How much will this bond be sold:
A. $100 B. $107.87
C. $110 D. None of them
Câu 6: Which of the following statements are out of Technical
Analysis? A. Prices fluctuate in trends
B. Market volatility eliminates objective and subjective factors
C. The real value of the stock.
D. Analyze price movements in the past
Câu 7. Company X earns 10 billion VND in 2007. On Jan 1, 2007 X has 1
million outstanding shares. On July 1. 2007. X issues. 100.000 additional
common shares at the price of 20,000 VND/share. Calculate EPS?
A. 9,524 VND B.9,091 VND
C.10.233 VND D. 11,540 VND
Câu 8: What is the intrinsic value of a company's stock if dividends are
expected to grow at 5%, last year's and was $1, and investors's required
rate of return for this stock is 10%?
A. $19 B. $20
C. $21 D. $26.50
Câu 9: An analyst values stocks using a dividend discount model. Holding
all other factors constant of the following is least likely to increase the
estimated value of a stock?
A. An increase in the next period's expected dividend
B. A decrease in the expected growth rate of dividend
C. A decease in the stock's symtematic risk
D. An decrease in the stock's specific risk
Câu 10: A derivative is most accurately defined as a financial
instrument that provides:
A. an adjustment to another asset's level of risk
B. a retum based on the return of an underlying asset
C. an agreement between two parties to provide something for
cach other D. a loan for a future trade
Câu 11: The value of a call option on a stock is least likely to increase as a
results of: A an increase in asset price volatility
B. a decrease in market price of the underlying stock
C. a decrease in the strike price of the option
D. a positive prospect of the underslying stock
Câu 12: ...... variance of an investment's returns.......
investment risks A. Higher, Lower B. Lower, Lower
C. Lower, Higher D. Higher, Constant
Câu 13: For which of the following bonds is the price more sensitive to
changes in YTM?
A.30-year bond with 5% coupon rate and semiannual coupon
payment B. zero coupon bond with 15-year maturity
C. (A) and (B) have the same price sensitivity
D. cannot determine which has higher price sensitivity without further information
Câu 14: An estimate of the price change for a coupon bond caused by 1%
decline in its yield to maturity based only on its modified duration will result
in an anwer that:
A. is smaller than the actual price change
B. is largeer than the actual price change
C. in exactly equal to the actual price change
D. non of the above
Câu 15: Which of the financial statements recognizes only transactions in
which cash changes hands?
A. balance sheet B. income statement
C. statement of cash flows D. balance sheet and income statement
Câu 16. In the pricing model using the discounted free cash flow to firm
(FCFF), the discount rate used
A. Cost of Debt
B. Cost of Equity
C. The required rate of return is calculated from the CAPM
D. WACC
Cau 17: The market price of stock B (underlying asset) is $75. A put option
on stock B has an exercise price of $70. If this put is selling for $2.50, this
put option:
A. Al-the-money B. In-the-money
C. Out-the-money D. None of them
Câu 18: An analyst looks at Company A at the beginning of 2008. He
assumes Company A pays a dividend of $4/share in 2009 and $5/share in
2010. He also expects the stock price at the end of 2010 is $250. The
estimated cost of equity (rate) is 11%. Assume all dividends are paid at the
end of the year. What is the estimated price of this stock at the end of 2008
using the discounted dividend model (DDM
A. $229.73 B. $210 C. $206,96 D. $210,57
Câu 19: Investor X buys 100 shares of Company AB at the price of
50,000 VND/share. After 1 year, investor X sells these 100 shares at
the price of 40,000 VND/share. What is investor X's return rate?
A. -20% B. 10% C. 20% D. -10%
Câu 20: Company A issues dividend preference shares with a par value of
$50, with an annual divide rate of 6%. Due to a change in the economy.
Investor X now requires a rate of return of 7%. At what would investor X be
willing to buy this preferred stock if X received its first dividend exactly 1
year the time of purchase?
A. 38,37$ B. 31,54 $ C. 30,00 $ D. 42,86 $ VY
Đ 1 Câu h i 1 ề ỏ : ____ are examples of financial
intermediaries.

a. Investment companies
b. Insurance companies
c. Commercial banks
d. All of the options
Câu h i 2: ỏ Governments never issue stock because:
Select one:
a. the Constitution (Hiến pháp) expressly forbids it
b. both A and B of the above
c. they cannot sell ownership claims
d. neither A nor B of the above
Câu h i 3: ỏ New issues of securities are sold in the market(s).
Select one:
a. primary
b. primary and secondary
c. secondary
d. over-the-counter
Câu h i 4: ỏ Commercial banks differ from other businesses in that both their assets and
their liabilities are mostly Select one:

a. owned by the government

b. illiquid
c. real
d. financial
Câu hỏi 6
Which of the following is not a characteristic of a money market
instrument? Select one:
a. Long maturity
b. Liquidity premium
c. Long maturity and liquidity premium
d. Liquidity
Câu hỏi 7
A firm has a higher quick (or acid test) ratio than the industry average, which implies Select one:

a. the firm is more likely to avoid insolvency in the short run than other firms in theindustry, and
the firm may be less profitable than other firms in the industry.

b. the firm is more likely to avoid insolvency in the short run than other firms in theindustry. c.
the firm has a higher P/E ratio than other firms in the industry.

d. the firm may be less profitable than other firms in the industry.
Câu h i 9: ỏ
Assume the U.S. government was to decide to increase the budget field. Holding all else
constant, this will cause______ to increase.
Select one:
a. unemployment
b. government borrowing
c. interest rates and government borrowing
d. interest rates
Câu 10
____ is a summary of the profitability of the firm over a period of time, such as a year.
Select one:
a. The audit report
b. The balance sheet
c. The income statement
d. The statement of cash flows
Câu hỏi 11
The goal of fundamental analysts is to find securities Select
one:

a. with high market capitalization rates.

b. All of the options are correct.
c. with a positive present value of growth opportunities.
d. whose intrinsic value exceeds market price.
Câu hỏi 13
Other things being equal, a low would be most consistent with a relatively high growth rate of
firm earnings.
Select one:
a. degree of financial leverage
b. variability of earnings
c. dividend-payout ratio
d. inflation rate
Câu h i 14: ỏ
An example of a positive demand shock is:
Select one:
a. a decrease in tax rates.
b. a decrease in the money supply.
c. a decrease in foreign export demand.
d. a decrease in government spending.
Câu hỏi 15
____are analysts who use information concerning current and prospective profitability of a firm
to assess the firm's fair market value.
Select one:
a.Technical analysts
b. Systems analysts
c. Fundamental analysts
d. Credit analysts
Câu hỏi 22
Which of the following is most closely associated with the terms "primary trend,"
"intermediate trend," and "short-term trend"?

Select one:
a. Candlestick chart.
b. Channel.
c. Dow Theory.
d. Bar chart.
Câu hỏi 23
One of the most popular tools used by technical analysts is:
Select one:
a. moving averages.
b. book-to-market-value ratio.
c. P/E ratio.
d. growth rate of dividends.
Câu hỏi 24
Which of the following terms represents an upper price limit for a stock, based on the quantity
of willing sellers?
Select one:
a. Resistance.
b. Channel.
c. Support.
d. Trendline.
Câu hỏi 25
In regard to moving averages, it is considered to be a…. signal when market price
breaks through the moving average from… Select one:
a. bearish; below
b. None of the options are correct
c. bullish; above
d. bullish; below
Câu hỏi 26
In order to have confirmation of a major market trend under the Dow Theory,
the: Select one:
a. industrial and utility averages must confirm each other.
b. transportation and utility averages must confirm each other.
c. transportation and industrial average must confirm each other.
d. utility average must lead the transportation average.
Câu h i 27: ỏ
Of the following investments, (are) considered the safest.
Select one:
a. commercial paper
b. corporate bonds
c. Treasury bills
d. U.S. agency issues
Câu hỏi 28
Consider a 5-year bond with a 10% coupon that has a present yield to maturity of 8%. If
interest rates remain constant, one year from now, the price of this bond will be Select
one:
a. higher.
b. lower.
c. $1,000.
d. the same.
Câu hỏi 29
Ceteris paribus, the price and yield on a bond are Select
one:

a. not related.
b. sometimes positively and sometimes negatively related.
c. negatively related.
d. positively related.
Câu h i 30 ỏ
Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000.
Each pays interest of $120 annually. Bond A will mature in five years, while bond B will mature
in six years. If the yields to maturity on the two bonds change from 12% to 10%.
Select one:
a. both bonds will increase in value, but bond B will increase more
than bond A. b. both bonds will increase in value, but bond A will increase more
than bond B. c. both bonds will decrease in value, but bond B will decrease more
than bond A. d. both bonds will decrease in value, but bond A will decrease more
than bond B. Câu hỏi 35
The terms of futures contracts… standardized, and the terms of forward contracts…

standardized. Select one:

a. are not; are not

b. are not; are
c. are; are
d. are; are not
Câu hỏi 36
An American put option can be exercised Select
one:

a. only on the expiration date.

b. only after dividends are paid.
c. any time on or before the expiration date.
d. any time in the indefinite future.
Câu hỏi 37
Before expiration, the time value of an in- the-money call option is always Select one:

a. positive.
b. equal to the stock price minus the exercise price.
c. negative.
d. equal to zero.
Câu hỏi 38
An American put option allows the holder to Select
one:

a. sell the underlying asset at the striking price on or before the expiration date.
b. sell the underlying asset at the striking price on or before the expiration date and
potentially benefit from a stock price increase.
c. potentially benefit from a stock price increase.
d. buy the underlying asset at the striking price on or before the expiration
date. Câu hỏi 39
You hold one long corn futures contract that expires in April. To close your position in corn
futures before the delivery date you must Select one:

a. sell one April corn futures contract.

b. buy one may corn futures contract.
c. sell one may corn futures contract.
d. buy two April corn futures contract.
Câu hỏi 40
The process of marking to market Select
one:

a. posts gains or losses to each account daily.

b. may result in margin calls.
c. posts gains or losses to each account daily and may result in
margin calls. d. impacts only long positions.
—------------------------------------------------------------------------------------------------------------
-Đ2ề
Câu hỏi 1
Compared to money market securities, capital market securities
have: Select one:
a. longer maturities
b. more liquidity
c. lower yields
d. less risk
Câu hỏi 3
New issues of securities are sold in the market(s).
Select one:
a. primary
b. over-the-counter
c. primary and secondary
d. secondary
Câu hỏi 4
The value of a bond is the amount that the issuer must pay at
maturity. Select one:
a. discounted
b. present
c. market
d. face
Câu hỏi 5
Which of the following securities is a money market instrument?
Select one:
a. Treasury bond
b. Municipal bond
c. Treasury note
d. Commercial paper
Câu hỏi 6
Most of the time, the interest rate on Treasury notes and bonds is… that on money
market securities because of… risk.
Select one:
a. below; default
b. below; interest-rate
c. above, interest rateCâu h i 8: ỏ
Fiscal policy generally has a…. direct impact than monetary policy on the economy, and
the formulation and implementation of fiscal policy is…than that of monetary policy.
Select one:
a. less; slower
b. more; quicker
c. more; slower
d. less; quicker
Câu hỏi 11
Low P/E ratios tend to indicate that a company will, ceteris paribus.
Select one:
a. grow at the same speed as the average company
b. grow slowly
c. P/E ratios are unrelated to growth.
d. grow quickly
Câu hỏi 13
Other things being equal, a low would be most consistent with a relatively high growth rate of
firm earnings.
Select one:
a. degree of financial leverage
b. variability of earnings
c. dividend-payout ratio
d. inflation rate
Câu h i 14 ỏ
An example of a positive demand shock is:
Select one:
a. a decrease in tax rates.
b. a decrease in the money supply.
c. a decrease in foreign export demand.
d. a decrease in government spending.
Câu hỏi 15
The Gordon model Select
one:

a. is a generalization of the perpetuity formula to cover the case of a growing

perpetuity and is valid only when g is less than k. b. is valid only when g is less than k.
c. is valid only when k is less than g.
d. is a generalization of the perpetuity formula to cover the case of a
growingperpetuity. Câu hỏi 16
According to Michael Porter, there are five determinants of competition. An example of is when
a buyer purchases a large fraction of an industry's output and can demand price concessions.
Select one:
a. rivalry between existing competitors
b. threat of entry
c. bargaining power of buyers
d. pressure from substitute products
Câu hỏi 22
The two primary tools of a technical analyst are:
Select one:
a. price and volume.
b. economic indicators and level of the market index.
c. level of the market index and volume.
d. price and technical indicators.
Câu hỏi 23
To a technician that believed in the importance of volume, a bullish signal would occur when
Select one:
a. prices decrease on light volume.
b. prices increase on heavy volume.
c. prices decrease on heavy volume.
d. prices increase on light volume.
Câu hỏi 24: Giống đề 1 Câu hỏi 25
A support level is a price range:
Select one:
a. above which a stock price cannot go.
b. below which a stock price cannot go.
c. at which a significant increase in demand for a stock is expected.
d. at which a significant increase in supply of a stock is expected.
Câu hỏi 26
Which type of chart includes daily high price, low price, opening price, and closing
price? Select one:
a. Bar chart.
b. Point-and-figure chart.
c. Candlestick chart.
d. Moving average chart.
Câu hỏi 27
Callable bonds Select
one:

a. are called when interest rates decline appreciably.

b. are more likely to be called when interest rates decline and have a call price
thatdeclines as time passes.
c. are called when interest rates increase appreciably.
d. have a call price that declines as time passes.
Câu hỏi 29
Of the following investments, (are) considered the safest.
Select one:
a. Treasury bills
b. U.S. agency issues
c. commercial paper
d. corporate bonds is
Câu h i 30: ỏ Accrued
interest Select one:

a. must be paid by the buyer of the bond and remitted to the seller of the bond. b. is
quoted in the bond price in the financial press and must be paid by the buyer of the bondand
remitted to the seller of the bond.
c. is quoted in the bond price in the financial press.
d. must be paid to the broker for the inconvenience of selling bonds between maturity
dates. Câu h i 35: ỏ A
futures contract
Select one:
a. is an agreement to buy or sell a specified amount of an asset at the spot price on theexpiration
date of the contract.
b. is an agreement to buy or sell a specified amount of an asset at a predetermined
priceon the expiration date of the contract.
c. gives the buyer the right, but not the obligation, to buy an asset sometime in the
future. d. is a contract to be signed in the future by the buyer and the seller of the
commodity. Câu 36:
A European put option allows the holder to Select
one:

a. sell the underlying asset at the striking price on the expiration date.
b. buy the underlying asset at the striking price on or before the expiration
date. c. potentially benefit from a stock price increase.

d. sell the underlying asset at the striking price on or before the expiration
date. Câu 37:
Before expiration, the time value of an in-the-money call option is always Select one:

a. positive.
b. equal to the stock price minus the exercise price.
c. negative.
d. equal to zero.

Câu 39:
The potential loss for a writer of a naked call option on a stock is Select one:

a. increasing when the stock price is

decreasing.
b. unlimited.
c. equal to the call premium.
d. limited.
Câu 40:
A protective put strategy is Select
one:

a. a long put plus a long position in the underlying asset.

b. a long call plus a short put on the same underlying asset.
c. a long put plus a short call on the same underlying asset.
d. a long put plus a long call on the same underlying asset.
—------------------------------------------------------------------------------------------------------------
-Đ3ề

Câu h i 1: ỏ
Which of the following portfolio construction methods starts with security
analysis? Select one:
a. Middle-out
b. Bottom-up
c. Top-down
d. Buy and holdCâu 2:
Which one of the following terms best describes Eurodollars?
Select one:
a. Dollars that have been exchanged for European currency.
b. Dollar-denominated deposits at foreign banks and branches of American
banksoutside the U.S.
c. Dollar-denominated deposits at branches of foreign banks in the U.S.
d. Dollar-denominated deposits at American banks in the U.S.
e. Dollar-denominated deposits only in European banks.
Câu h i 5: ỏ
The riskiest capital market security is:
Select one:
a. common stock
b. Treasury bonds
c. preferred stock
d. corporate bondsCâu h i 6: ỏ
New issues of securities are sold in the
Select one: market(s).

a. primary
b. secondary
c. over-the-counter
d. primary and secondaryCâu h i 7: ỏ
Assume the U.S. government was to decide to increase the budget field. Holding all else
constant, this will cause to increase.
Select one:
a. government borrowing
b. unemployment
c. interest rates and government borrowing
d. interest ratesCâu h i 10: ỏ
Other things being equal, a low__________would be most consistent with a relatively high
growth rate of firm earnings.
Select one:
a. inflation rate
b. variability of earnings
c. dividend-payout ratio
d. degree of financial leverageCâu h i 11: ỏ
Low P/E ratios tend to indicate that a company will
ceteris paribus. Select one:
a. grow slowly
b. P/E ratios are unrelated to growth.
c. grow quickly
d. grow at the same speed as the average companyCâu h i 12: ỏ
Assume that the Federal Reserve decreases the money supply. This action will cause
Select one:
a. the unemployment rate
b. investment in the economy
c. interest rates
d. trade balance
Câu h i 13 ỏ
Fundamental analysis uses Select
one:

a. price momentum.
b. earnings, dividend prospects, and relative strength.
c. earnings and dividends prospects.
d. relative strength to decrease.
Câu hỏi 14
Which of the financial statements recognizes only transactions in which cash changes
hands? Select one:
a. Balance sheet
b. Balance sheet and income statement
c. Statement of cash flows
d. Income statement
Câu hỏi 15
High P/E ratios tend to indicate that a company will ceteris
paribus.

Select one:
a. not grow
b. grow at the same speed as the average company
c. grow slowly
d. grow quickly
Câu hỏi 16
The ___is defined as the present value of all cash proceeds to the investor in the stock.
a. dividend-payout ratio

b. intrinsic value
c. market-capitalization rate
d. plowback ratioCâu 22:
Select one:
On which of the following does a hammer sometimes appear?

a. Moving average chart.

b. Bar chart.
c. Point-and-figure chart.
d. Candlestick chart.
Câu 23:
Which of the following indicates a buy signal to technical
analysts? Select one:
a. The support level is broken.
b. The advance-dedine line is falling in a rising market.
c. Odd-lot buying exceeds odd-lot selling.
d. The stock breaks through the moving average line from
below. Câu 24:
One of the most popular tools used by technical analysts is:
Select one:
a. growth rate of dividends.
b. P/E ratio.
c. moving averages.
d. book-to-market-value ratio.
Câu 25:
Which of the following is NOT considered an assumption of technical
analysis? Select one:
a. Market value is determined solely by supply and demand.
b. Stock prices follow a random walk.
c. Supply and demand are governed by both rational and irrational factors. d. Security
prices tend to move in trends that persist for an appreciable length of time. Câu 26:
Which of the following is not true regarding the Dow Theory?
Select one:
a. It has a very high success rate.
b. It is subject to many criticisms.
c. It does not forecast how long a movement will last.
d. It is intended to forecast the start of a primary movement.
Select one:
Câu 27:
Ceteris paribus, the price and yield on a bond are

a. negatively related.
b. positively related.
c. sometimes positively and sometimes negatively related.
d. not related.
 Câu 28: Callable
bonds Select one:

a. are more likely to be called when interest rates decline and have a call price that
declinesas time passes.
b. are called when interest rates increase appreciably.
c. have a call price that declines as time passes.
d. are called when interest rates decline appreciably.
Câu 29:
Of the following investments, is (are) considered the safest.
Select one:
a. Treasury bills
b. U.S. agency issues
c. commercial paper
d. corporate bondsCâu 30:
Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000. Each
pays interest of $120 annually. Bond A will mature in five years, while bond B will mature in six
years. If the yields to maturity on the two bonds change from 12% to 10%.
Select one:
a. both bonds will decrease in value, but bond B will decrease more than bond
A. b. both bonds will increase in value, but bond A will increase more than bond
B. c. both bonds will increase in value, but bond B will increase more
than bond A. d. both bonds will decrease in value, but bond A will decrease
more than bond B. Câu 35:
Before expiration, the time value of an in-the-money call option is always Select one:

a. equal to zero.
b. equal to the stock price minus the exercise price.
c. negative.
Select
one: d.
positive.
Select one:
Câu 36:
The current market price of a share of Disney stock is $60. If a call option on this stock has a strike price of $65, the call
Select one:
a. is out of the money.
b. is in the money.
c. is out of the money and can be exercised profitably.
Od. can be exercised profitably.
Câu 37:
A protective put strategy is Select one:

a. a long put plus a long call on the same underlying asset.

b. a long call plus a short put on the same underlying asset.
c. a long put plus a long position in the underlying asset.
d. a long put plus a short call on the same underlying asset.
Câu 38:
The price that the buyer of a call option pays for the underlying asset if she executes her option is called the Select one: a.
strike price or exercise price.
b. exercise price.
c. execution price.
d. strike price.
Câu 39:
The price that the buyer of a call option pays to acquire the option is called the Select one:

a. strike price.
b. execution price.
c. premium.
d. exercise price.
Câu 40: A futures contract Select one:
a. is a contract to be signed in the future by the buyer and the seller of the commodity.
b. gives the buyer the right, but not the obligation, to buy an asset sometime in the future.
c. is an agreement to buy or sell a specified amount of an asset at the spot price on theexpiration date of the contract. d. is
an agreement to buy or sell a specified amount of an asset at a predetermined price onthe expiration date
of the contract.

Đ Thu Trà ề
Câu hỏi 1
Investors trade previously issued securities in the ________ market(s). Select one:
a. primary
b. primary and secondary
Select one:
c. derivatives
d. secondary
Câu hỏi 2
Preferred stockholders hold a claim on assets that has priority over the claims of Select one:
a. bondholders, but after that of common stockholders
b. both common stockholders and bondholders
c. common stockholders, but after that of bondholders
d. neither common stockholders nor bondholders
Câu hỏi 3
The ________ value of a bond is the amount that the issuer must pay at maturity. Select one:
a. market
b. present
c. discounted
d. face
Câu hỏi 5
New issues of securities are sold in the ________ market(s).
Select one:
a. over-the-counter
b. secondary
c. primary
d. primary and secondary
Câu hỏi 6
The most commonly quoted index is the Dow Jones Industrial Average (DJIA), an index based on the performance of the
stocks of ________ large companies. Select one:

a. 25
b. 40
c. 35
d. 30
Câu hỏi 7
Increases in the money supply will cause demand for investment and consumption goods to _______ in the short run and
cause prices to ________ in the long run.
Select one:
a. increase; increase
b. decrease; hold steady
c. increase; decrease
d. decrease; increase
Câu hỏi 8
A firm has a higher quick (or acid test) ratio than the industry average, which implies Select one:
a. the firm has a higher P/E ratio than other firms in the industry.
b. the firm is more likely to avoid insolvency in the short run than other firms in the industry.
c. the firm is more likely to avoid insolvency in the short run than other firms in the industry,
Select one:
and the firm may be less profitable than other firms in the industry.
d. the firm may be less profitable than other firms in the industry.
Câu hỏi 9
Many stock analysts assume that a mispriced stock will Select one:
a. immediately return to its intrinsic value.
b. never return to its intrinsic value.
c. return to its intrinsic value within a few days.
d. gradually approach its intrinsic value over several years.
Câu hỏi 10
Assume that the Federal Reserve decreases the money supply. This action will cause ________ to decrease. Select one:

a. the unemployment rate

b. trade balance
c. investment in the economy
d. interest rates
Câu hỏi 11
High P/E ratios tend to indicate that a company will _______, ceteris paribus. Select one:
a. grow quickly
b. not grow
c. grow slowly
d. grow at the same speed as the average company
Câu hỏi 12
Dividend discount models and P/E ratios are used by __________ to try to find mispriced securities. Select one:

a. statistical analysts
b. dividend analysts
c. technical analysts
d. fundamental analysts
Câu hỏi 13
Sector rotation Select one:
a. is never worthwhile.
b. should always be carried out.
c. is shifting the portfolio more heavily toward an industry or sector that is expected to perform well in
the future.
d. can be implemented without cost.
Câu hỏi 14
Fiscal policy generally has a _______ direct impact than monetary policy on the economy, and the formulation and
implementation of fiscal policy is ______ than that of monetary policy.
Select one:
a. less; slower
Select one:
b. more; quicker
c. more; slower
d. less; quicker
Câu hỏi 15
Proceeds from a company's sale of stock to the public are included in Select one:
a. additional paid-in capital.
b. par value.
c. retained earnings.
d. par value and additional paid-in capital.
Câu hỏi 16
If the currency of your country is depreciating, the result should be to ______ exports and to _______ imports. Select one:

a. decrease; increase
b. increase; decrease
c. increase; increase
d. decrease; decrease
Câu hỏi 21
You wish to earn a return of 13% on each of two stocks, X and Y. Stock X is expected to pay a dividend of $3 in the
upcoming year while stock Y is expected to pay a dividend of $4 in the upcoming year. The expected growth rate of
dividends for both stocks is 7%. The intrinsic value of stock X:
Select one:
a. will be greater than the intrinsic value of stock Y.
b. will be the same or greater than the intrinsic value of stock Y.
c. will be the same as the intrinsic value of stock Y.
d. will be less than the intrinsic value of stock Y.
Câu hỏi 22
A support level is a price range: Select one:
a. above which a stock price cannot go.
b. below which a stock price cannot go.
c. at which a significant increase in demand for a stock is expected.
d. at which a significant increase in supply of a stock is expected.
Câu hỏi 23
When the 50-day moving average crosses the 200-day moving average from ____ on ____ volume, this would be a ____

signal. Select one:

a. below, low, bullish.

b. above, low, bullish.
c. below, high, bullish.
d. below, high, bearish.
Câu hỏi 24
Which of the following is true regarding the resistance level?
Select one:
Select one:
a. It is the level at which a significant decrease in demand is expected.
b. It is the level at which a significant increase in supply is expected.
c. Resistance levels usually develop after a stock reaches a new low.
d. Resistance levels tend to develop due to profit taking.
Câu hỏi 25
Which of the following terms represents an upper price limit for a stock, based on the quantity of willing sellers? Select

one:

a. Channel.
b. Resistance.
c. Trendline.
d. Support.
Câu hỏi 26
A technical analyst would consider the following a strong buy signal:
Select one:
a. a graph begins to trade in a flat trend after it breaks out of its rising trend channel.
b. a graph of declining prices ends in a trough followed by an upward trend that breaks
through the declining trend channel.
c. a graph of increasing prices ends in a peak followed by a downward trend that breaks
through the rising trend channel.
d. a graph begins to trade in a declining trend after it breaks out of its flat trend channel.
Câu hỏi 27
Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000. Each pays interest of $120
annually. Bond A will mature in five years, while bond B will mature in six years. If the yields to maturity on the two bonds
change from 12% to 10%.
Select one:
a. both bonds will decrease in value, but bond A will decrease more than bond B.
b. both bonds will increase in value, but bond A will increase more than bond B.
c. both bonds will increase in value, but bond B will increase more than bond A.
d. both bonds will decrease in value, but bond B will decrease more than bond A.
Câu hỏi 28
The ________ is used to calculate the present value of a bond.
Select one:
a. yield to call
b. current yield
c. nominal yield
d. yield to maturity
Câu hỏi 29
Accrued interest Select one:
Select one:
a. must be paid to the broker for the inconvenience of selling bonds between maturity dates. b. must be paid by the buyer
of the bond and remitted to the seller of the bond.
c. is quoted in the bond price in the financial press.
d. is quoted in the bond price in the financial press and must be paid by the buyer of the bond and remitted to the seller of
the bond.
Câu hỏi 30
Consider a 5-year bond with a 10% coupon that has a present yield to maturity of 8%. If interest rates remain constant, one
year from now, the price of this bond will be Select one:

a. higher.
b. lower.
c. the same.
d. $1,000.
Câu hỏi 35
The price that the buyer of a call option pays for the underlying asset if she executes her option is called the Select one:
a. execution price.
b. strike price or exercise price.
c. strike price.
d. exercise price.
Câu hỏi 36
Before expiration, the time value of an in-the-money call option is always Select one:
a. negative.
b. equal to the stock price minus the exercise price.
c. equal to zero.
d. positive.Câu h i 37 ỏ
The terms of futures contracts __________ standardized, and the terms of forward contracts __________ standardized.
Select one:

a. are; are
b. are not; are
c. are; are not
d. are not; are not
Câu hỏi 38
The process of marking to market Select one:
a. posts gains or losses to each account daily and may result in margin calls.
b. may result in margin calls.
c. posts gains or losses to each account daily.
d. impacts only long positions.
Câu hỏi 39
The potential loss for a writer of a naked call option on a stock is Select one:
a. equal to the call premium.
b. limited.
c. unlimited.
Select one:
d. increasing when the stock price is decreasing.
Câu hỏi 40
A European put option allows the holder to Select one:

a. buy the underlying asset at the striking price on or before the expiration date. b. sell the underlying asset at the
striking price on the expiration date. c. potentially benefit from a stock price increase.
d. sell the underlying asset at the striking price on or before the expiration date.
--------------------------------------------------------------------------------------------------------------- Đ Giàu ề
Câu hỏi 1
The riskiest capital market security is:
Select one:
a. corporate bonds
b. common stock
c. preferred stock
d. Treasury bonds
Câu hỏi 4
Compared to money market securities, capital market securities have: Select one:

a. longer maturities
b. lower yields
c. less risk
d. more liquidity
Câu hỏi 5
_______ are examples of financial intermediaries. Select one:
a. Insurance companies
b. Investment companies
c. Commercial banks
d. All of the options
Câu hỏi 6
A fixed-income security pays.
Select one:
a. a fixed or variable income stream at the option of the owner.
b. a fixed level of income for the life of the owner.
c. a variable level of income for owners on a fixed income.
d. a fixed stream of income or a stream of income that is determined according to a specified formula for
the life of the security.
Câu hỏi 7
If the economy is growing, firms with high operating leverage will experience: Select one:
Select one:
a. higher increases in profits than firms with low operating leverage.
b. similar increases in profits as firms with low operating leverage.
c. no change in profits.
d. smaller increases in profits than firms with low operating leverage.
Câu hỏi 9
Which of the following are not examples of defensive industries?
Select one:
a. Pharmaceutical firms
b. Public utilities
c. Durable goods producers
d. Food producers
Câu hỏi 10
Dividend discount models and P/E ratios are used by __________ to try to find mispriced securities. Select one:

a. technical analysts
b. statistical analysts
c. fundamental analysts
d. dividend analysts
Câu hỏi 11
WACC is the most appropriate discount rate to use when applying a ______ valuation model. Select one:
a. FCFF
b. DDM
c. FCFE
d. P/E
Câu hỏi 12
The top-down analysis of a firm starts with: Select one:
a. the domestic economy
b. the industry outlook
c. the global economy.
d. the relative value of the firm
Câu hỏi 14
Fiscal policy generally has a _______ direct impact than monetary policy on the economy, and the formulation and
implementation of fiscal policy is ______ than that of monetary policy.
Select one:
a. less; quicker
b. less; slower
c. more; quicker
d. more; slower
Câu hỏi 16
A firm has a market to book value ratio that is equivalent to the industry average and an ROE that is less than the industry
average, which implies Select one:
Select one:
a. the firm is utilizing its assets more efficiently than other firms in the industry.
b. the firm is more profitable than other firms in the industry.
c. the firm has a higher P/E ratio than other firms in the industry.
d. the firm is more likely to avoid insolvency in the short run than other firms in the industry. Câu hỏi 22
Which of the following terms represents an upper price limit for a stock, based on the quantity of willing sellers? Select

one:

a. Resistance.
b. Channel.
c. Support.
d. Trendline.
Câu hỏi 23
One of the most popular tools used by technical analysts is:
Select one:
a. growth rate of dividends.
b. moving averages.
c. P/E ratio.
d. book-to-market-value ratio.
Câu hỏi 24
A price range at which technicians would expect a substantial increase in the demand for a stock is called Select one:
a. support level.
b. demand threshold.
c. resistance limit.
d. resistance level.
Câu hỏi 25
In order to have confirmation of a major market trend under the Dow Theory, the:
Select one:
a. transportation and industrial average must confirm each other.
b. industrial and utility averages must confirm each other.
c. transportation and utility averages must confirm each. other.
d. utility average must lead the transportation average.
Câu hỏi 26
To a technician that believed in the importance of volume, a bullish signal would occur when Select one:
a. prices decrease on heavy volume.
b. prices increase on heavy volume.
c. prices decrease on light volume.
d. prices increase on light volume.
Câu hỏi 27
Of the following investments, ________ is (are) considered the safest.
Select one:
Select one:
a. commercial paper
b. Treasury bills
c. U.S. agency issues
d. corporate bonds
Câu hỏi 29
Callable bonds Select one:
a. are called when interest rates decline appreciably.
b. have a call price that declines as time passes.
c. are more likely to be called when interest rates decline and have a call price that
declines as time passes.
d. are called when interest rates increase appreciably.
Câu hỏi 30
The ________ is used to calculate the present value of a bond.
Select one:
a. current yield
b. yield to maturity
c. yield to call
d. nominal yield
Câu hỏi 35
A futures contract Select one:
a. is a contract to be signed in the future by the buyer and the seller of the commodity.
b. is an agreement to buy or sell a specified amount of an asset at the spot price on the
expiration date of the contract.
c. is an agreement to buy or sell a specified amount of an asset at a predetermined price on the expiration
date of the contract.
d. gives the buyer the right, but not the obligation, to buy an asset sometime in the future.
Câu hỏi 36
A European put option allows the holder to Select one:
a. sell the underlying asset at the striking price on or before the expiration date.
b. potentially benefit from a stock price increase.
c. buy the underlying asset at the striking price on or before the expiration date.
d. sell the underlying asset at the striking price on the expiration date.
Câu hỏi 38
The process of marking to market Select one:
a. impacts only long positions.
b. posts gains or losses to each account daily and may result in margin calls.
c. posts gains or losses to each account daily.
d. may result in margin calls.
Câu hỏi 39
You write one JNJ February 70 put for a premium of $5. Ignoring transaction costs, what is the break-even price of this

position? Select one:

Select one:
a. $5
b. $70
c. $75
d. $65
Câu hỏi 40
The terms of futures contracts __________ standardized, and the terms of forward contracts __________ standardized.

Select one:

a. are not; are not

b. are not; are
c. are; are
d. are; are not
—-------------------------------------------------------------------------------------------------------------
Đề Hải My
Câu 25:
Technical analysis reflects the idea that stock prices:
a. move inversely over time
b. move upward over time
c. move randomly
d. move in trends Câu 26:
The Dow Theory describes stock prices as moving in trends analogous to the movement of water. Which of the following
statements is NOT true?
a.Waves are the most important
b. Major trends resemble tides
c. Intermediate trends resemble waves
d. Short - run movements are like ripples Câu 27:
A ___ bond is a bond where the bondholder has the right to cash in the bond before maturity at a specified price after a
specific date.
a. zero- coupon
b. coupon
c. put
d. callable (Sai)
e.Treasury Câu 35:
The buyer of a futures contract is said to have a ____ position, and the seller of a futures contract is said to have a ___
position in futures.
a. short, short
b. short,long
c. long, long
d. long, short Câu 37: (chưa tìm đc đáp án)
You purchase one JNJ 75 call option for a premium of $3. Ignoring transaction costs, the break-even price of the position is
a. $78
Select one:
b. $3
c. $75
d. $72
Câu 39:
The current market price of a share of AT&T stock is $50. If a call option on this stock has a strike price of $45, the call
Select one:
a. is out of the money and sells for a higher price than if the market price of AT&amp; T stock is $40 b. is in the money.
(thấp hơn)
c. is out of the money.
d. buy for a higher price than if the market price of AT&amp;T stock is $40.

Câu 40:
The maximum loss a buyer of a stock put option can suffer is equal to
a. The stock price
b. the put premium
c. The stock price minus the values of the call
d. the striking price minus the stock price
ĐỀ THẢO
Câu h i 1 ỏ
Which of the following securities is a money market instrument?
Select one:
a. Commercial paper
b. Treasury bond
c. Municipal bond
d. Treasury note
Câu h i 2 ỏ
Governments never issue stock because:
Select one:
a. both A and B of the above
b. they cannot sell ownership claims
c. neither A nor B of the above
d. the Constitution (Hiến pháp) expressly forbids it
Câu h i 3 ỏ
If the Federal Reserve lowers the discount rate, ceteris paribus, the equilibrium levels of funds lent
will ... and the equilibrium level of real interest rates will...
Select one:
a. increase; increase
b. decrease; increase
c. increase; decrease
d. decrease; decrease
Câu h i 4 ỏ
Select one:
Which of the following portfolio construction methods starts with security analysis? Select one: a.
Buy and hold
b. Top-down
c. Middle-out
d. Bottom-up
Câu h i 5 ỏ
Compared to money market securities, capital market securities have:
Select one:
a. longer maturities
b. less risk
c. lower yields
d. more liquidity
Câu h i 6 ỏ
Which one of the following terms best describes Eurodollars?
Select one:
a. Dollar-denominated deposits at branches of foreign banks in the U.S.
b. Dollar-denominated deposits at American banks in the U.S.
c. Dollar-denominated deposits at foreign banks and branches of American banksoutside the
U.S. d. Dollars that have been exchanged for European currency.
e. Dollar-denominated deposits only in European banks.
Câu h i 7 ỏ
The goal of fundamental analysts is to find securities Select one:
a. with a positive present value of growth opportunities.
b. with high market capitalization rates.
c. whose intrinsic value exceeds market price.
d. All of the options are correct.
Câu hỏi 8: Which of the financial statements recognizes only transactions in which cash changes
hands? Select one:
a. Income statement
b. Balance sheet
c. Balance sheet and income statement (sai)
d. Statement of cash flows
Câu h i 9 ỏ
According to Michael Porter, there are five determinants of competition. An example of is the threat
new competitors pose to existing competitors in an industry.
Select one:
a. threat of entry
b. rivalry between existing competitors
c. pressure from substitute products
d. bargaining power of buyers
Select one:
Câu h i 10 ỏ
A firm has a market to book value ratio that is equivalent to the industry average and an ROE that is
less than the industry average, which implies Select one:
a. the firm is more profitable than other firms in the industry.
b. the firm is more likely to avoid insolvency in the short run than other firms in theindustry. c. the
firm has a higher P/E ratio than other firms in the industry.
d. the firm is utilizing its assets more efficiently than other firms in the industry.
Câu h i 11 ỏ
WACC is the most appropriate discount rate to use when applying a valuation
model.
Select one: a. FCFF
b. DDM
c. FCFE
d. P/E
Câu h i 12 ỏ
Fundamental analysis uses Select one:
a. earnings, dividend prospects, and relative strength.
b. price momentum.
c. relative strength.
d. earnings and dividends prospects.
Câu h i 13 ỏ
Increases in the money supply will cause demand for investment and consumption goods
to... in the short run and cause prices to... in the long run.
Select one:
a. increase; increase
b. increase; decrease
c. decrease, hold steady
d. decrease, decrease
Câu h i 14 ỏ
The top-down analysis of a firm starts with:
Select one:
a. the domestic economy
b. the global economy.
c. the industry outlook
d. the relative value of the firm
Câu h i 15 ỏ
According to Michael Porter, there are five determinants of competition. An example of is
when competitors seek to expand their share of the market.
Select one:
Select one:
a. rivalry between existing competitors
b. bargaining power of buyers
c. threat of entry
d. pressure from substitute products
Câu h i 16 ỏ
Low P/E ratios tend to indicate that a company will ceteris paribus.
Select one:
a. P/E ratios are unrelated to growth.
b. grow quickly
c. grow at the same speed as the average company
d. grow slowly
Câu h i 17 ỏ
You wish to earn a return of 13% on each of two stocks, X and Y. Stock X is expected to pay a
dividend of $3 in the upcoming year while stock Y is expected to pay a dividend of $4 in the
upcoming year. The expected growth rate of dividends for both stocks is 7%. The intrinsic value of
stock X:
Select one:
a. will be the same or greater than the intrinsic value of stock Y.
b. will be the same as the intrinsic value of stock Y.
c. will be greater than the intrinsic value of stock Y.
d. will be less than the intrinsic value of stock Y.
Câu h i 18 ỏ
If a firm's sales decrease by 15%, and profits decrease by 20% during a recession, the firm's
operating leverage (DOL) is Select one: a. 5
b. -5
c. 1.33
d. 0.75
Câu h i 20 ỏ
Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year.
Dividends are expected to grow at the rate of 6% per year. The risk-free rate of return is 5%, and
the expected return on the market portfolio is 13%. The stock of Torque Corporation has a beta of
1.2. What is the return you should require on Torque's stock? Select one: a. 14.6% b. 20%
c. 12.0%
d. 15.6%
Câu h i 21 ỏ
Sure Tool Company is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of
return is 4%, and the expected return on the market portfolio is 14%.
Analysts expect the price of Sure Tool Company shares to be $22 a year from now. The beta of
Sure Tool Company's stock is 1.25. The market's required rate of return on Sure's stock is Select
one: a. 17.5%. b. 14.0%.
Select one:
c. 15.25%.
d. 16.5%.

Câu h i 22 ỏ
In regard to moving averages, it is considered to be a signal when market price breaks through the
moving average from Select one:
a. bearish; below
b. bullish; above
c. None of the options are correct
d. bullish; below
Câu h i 23 ỏ
Which of the following would be inconsistent with an efficient market?
Select one:
a. Price adjustments are biased.
b. Price changes are independent.
c. Information arrives randomly and independently.
d. Stock prices adjust rapidly to new information.
Câu h i 24 ỏ
Which of the following is most closely associated with the terms "primary trend," "intermediate
trend," and "short-term trend"?
Select one:
a. Channel.
b. Dow Theory.
c. Candlestick chart.
d. Bar chart.
Câu h i 25 ỏ
Which of the following is not a part of the candlestick chart?
Select one:
a. Volume of trading.
b. Real body. (sai)
c. Opening price.
d. Closing price.
Câu h i 26 ỏ
A price range at which technicians would expect a substantial increase in the demand for
a stock is called Select one:
a. demand threshold.
b. resistance level.
c. support level.
d. resistance limit.
Câu h i 27 ỏ
Select one:
A bond is a bond where the bondholder has the right to cash in the bond before maturity at a
specified price after a specific date. Select one: a. callable
b. coupon
c. Treasury
d. put
e. zero-coupon
Câu hỏi 28 The ... is a measure of the average rate of return an investor will earn if the investor
buys the bond now and holds until maturity. Select one:
a. P/E ratio
b. yield to maturity
c. current yield
d. dividend yield
Câu h i 29 ỏ
Consider a 5-year bond with a 10% coupon that has a present yield to maturity of 8%. If interest
rates remain constant, one year from now, the price of this bond will be Select one: a. higher.
b. lower.
c. the same.
d. $1,000.
Câu h i 30 ỏ
The... is used to calculate the present value of a bond.
Select one:
a. current yield
b. yield to maturity
c. yield to call
d. nominal yield;Câu h i 31 ỏ
A 6.5 percent coupon bond issued by the State of California sells for $1,000. What coupon rate on a
corporate bond selling at $1,000 par value would produce the same after-tax return to the investor
as the municipal bond if the investor is in the 26 percent marginal tax bracket?
Select one:
a. 14.63 percent
b. 8.78 percent ✔
c. 1.69 percent
d. 11.25 percent
Câu h i 32 ỏ
Calculate the yield to maturity of a zero- coupon bond with a face value of $1000, maturing in 10
years, and selling for a price of $628.72.
Select one:
a. 4.18 percent
b. 4.75 percent
c. 6.29 percent
d. 8.23 percent
Câu h i 33 ỏ
Select one:
Using semi-annual compounding, a 15-year zero-coupon bond that has a par value of $1,000 and a
required return of 8% would be priced at approximately Select one: a. $308
b. $555.
c. $464.
d. $315.
Câu h i 34 ỏ
If a 7% coupon bond is trading for $975.00, it has a current yield of Select one: a. 7.00%. b. 7.18%.
c. 6.53%
d. 7.24%
Câu h i 35 ỏ
You write one JNJ February 70 put for a premium of $5. Ignoring transactions costs, what is the
break-even price of this position?
Select one: a. $5
b. $70
c. $65
d. $75
Câu h i 36 ỏ
In a futures contract, the futures price is Select one:
a. determined by the buyer and the seller when they initiate the contract.
b. determined by the buyer and the seller when the delivery of the commodity takesplace. c.
determined independently by the provider of the underlying asset.
d. determined by the futures exchange.
Câu h i 37 ỏ
The maximum loss a buyer of a stock call option can suffer is equal to Select one: a. the stock price
minus the value of the call.
b. the stock price.
c. the call premium.
d. the striking price minus the stock price.
Câu h i 38 ỏ
An American put option can be exercised Select one:
a. any time in the indefinite future.
b. any time on or before the expiration date.
c. only on the expiration date.
d. only after dividends are paid.
Câu h i 39 ỏ
A trader who has a ...... position in wheat futures believes the price of wheat will... in the future.
Select one: a. long; increase
b. long; stay the same
c. long; decrease
Câu h i 40 ỏ
Select one:
The buyer of a futures contract is said to have a position, and the seller of a futures contract is said
to have a position in futures.
Select one:
a. long; short
b. long; long
c. short; long
d. short; short
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Câu 2: Preferred stockholders hold a claim on assets that has priority over the claims of a.
bondholders, but after that of common stockholders
b. neither common stockholders nor bondholders
c. common stockholders, but after that of bondholders
d. both common stockholders and bondholders Câu 3: The riskiest capital market security is: a.
common stock
b. corporate bonds
c. Treasury bonds
d. preferred stock
Câu 4: Which of the following portfolio construction methods starts with security analysis? a. Buy
and hold
b. Middle-out
c. Top-down
d. Bottom-up
Câu 5: The _____ value of a bond is the amount that the issuer must pay at maturity. a. present b.
face
c. discounted
d. market
Câu 6: Which one of the following terms best describes Eurodollars?
Select one:
a. Dollar-denominated deposits at American banks in the U.S.
b. Dollar-denominated deposits at branches of foreign banks in the U.S.C. Dollars that have been exchanged
for European currency.
d. Dollar-denominated deposits at foreign banks and branches of American banks outsidethe U.S. e. Dollar-
denominated deposits only in European banks.
Câu 7: Other things being equal, a low _____ would be most consistent with a relatively high growth rate of
firm earnings.
a. a degree of financial leverage
b. dividend-payout ratio
c. inflation rate
Select one:
d. variability of earnings
Câu 8: Which of the following are not examples of defensive industries?
a. Public utilities
b. Food producers
c. Durable goods producers
d. Pharmaceutical firms
Câu 9: _____ is equal to common shareholder’s equity divided by common shares outstanding. a. Tobin’s Q
b. Market value per share
c. Liquidation value per share
d. Book value per share
Câu 10: Assume the U.S government was to decide to increase the budget field. Holding all else constant,
this will cause ____ to increase.
a. unemployment
b. interest rates and government borrowing
c. interest rates
d. government borrowing
Câu 11: According to Michael Porter, there are five determinants of competition. An example of is the
threat new competitors pose to existing competitors in an industry.
Select one:
a. bargaining power of buyers
b. threat of entry
c. pressure from substitute products
d. rivalry between existing competitors
Câu 12: If interest rates increase, business investment expenditures are likely to ____, and consumer
durable expenditures are likely to _____.
a. increase; decrease
b. increase; increase
c. decrease; decrease
d. decrease; increase
Câu 13: Dividend discount models and P/E ratios are used by ______ to try to find mispriced
securities. a. statistical analysts
b. fundamental analysts
c. technical analysts
d. dividend analysts
Câu 14: A firm has a higher asset turnover ratio than the industry average, which implies Select
one: a. the firm is more likely to avoid insolvency in the short run than other firms in the
industry. b. the firm is utilizing assets more efficiently than other firms in the industry.
Select one:
c. the firm has a higher P/E ratio than other firms in the industry.
d. the firm is more profitable than other firms in the industry.
Câu 15: According to Michael Porter, there are five determinants of competition. An example of is
when a buyer purchases a large fraction of an industry's output and can demand price
concessions. Select one:
a. rivalry between existing competitors
b. pressure from substitute products
c. threat of entry
d. bargaining power of buyers
Câu 16: According to Michael Porter, there are five determinants of competition. An example of is
when competitors seek to expand their share of the market.
Select one:
a. threat of entry
b. bargaining power of buyers
c. pressure from substitute products
d. rivalry between existing competitors
Câu 17: Fly Boy Corporation is expected have EBIT of $800k this year. Fly Boy
Corporation is in the 30% tax bracket, will report $52,000 in depreciation, will make $86,000 in
capital expenditures, and will have a $16,000 increase in net working capital this year. What is Fly
Boy's FCFF? Select one:
a. 406,000
b. 682,000
c. 542,000
d. 510,000
e. 596,000
Câu 18: Zero had a FCFE of $4.5M last year and has 2.25M shares outstanding. Zero's required
return on equity is 10%, and WACC is 8.2%. If FCFE is expected to grow at 8% forever, the intrinsic
value of Zero's shares is Select one: a. $26.35.
b. $14.76.
C. $1080.00.
d. $108.00.
Câu 19: Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year. Dividends
are expected to grow at the rate of 6% per year. The risk- free rate of return is 5%, and the
expected return on the market portfolio is 13%. The stock of Torque Corporation has a beta of 1.2.
What is the intrinsic value of Torque's stock? Select one: a. $14.60
b. $11.62 C. $14.29
d. $12.33
Câu 20: Sales Company paid a $1.00 dividend per share last year and is expected to continue to
pay out 40% of earnings as dividends for the foreseeable future. If the firm is expected to generate
a 10% return on equity in the future, and if you require a 12% return on the stock, the value of the
stock is Select one: a. $13.00.
Select one:
b. $17.67.
C. $16.67.
d. $18.67.
Câu 21: If a firm's sales decrease by 15%, and profits decrease by 20% during a recession, the
firm's operating leverage (DOL) is Select one: a. -5
b. 5
c. 1.33
d. 0.75
Câu 22: Technical analysis reflects the idea that stock prices:
Select one:
a. move upward over time.
b. move randomly.
c. move inversely over time.
d. move in trends.
Câu 23: Which of the following is not a part of the candlestick chart?
Select one:
a. Opening price.
b. Volume of trading.
c. Closing price.
d. Real body.
Câu 24: Which of the following is most closely associated with the terms "primary trend"
"intermediate trend" and "short-term trend"?
Select one:
a. Channel.
b. Dow Theory.
c. Bar chart.
d. Candlestick chart.
Câu 25: Technicians believe that an industry or stock that is outperforming the market will tend to
Select one:
a. return to normal.
b. meet a resistance level.
c. continue to outperform the market.
d. reverse trend.
Câu 26: Which of the following terms represents an upper price limit for a stock, based on the
quantity of willing sellers?
Select one:
a. Trendline.
b. Support.
c. Channel.
d. Resistance.
Câu 27: The ______ is used to calculate the present value of a bond.