公司理财-习题库-Chap012

1、CHAPTER 12Some Lessons from Capital Market HistoryDEFINITIONSRISK PREMIUM1. The excess return required from a risky asset over that required a risk-free asset is called the:risk premium.geometric premium.excess return.average return.variance.VARIANCE2. The average squared difference between the actu

2、al return and average return is called the:volatility return.variance.standard deviation.risk premium.excess return.STANDARD DEVIATION3. The standard deviation for a set of stock returns can be calculated the:positive square root of the average return.average squared difference between the actual re

3、turn and the average return.positive square root of the variance.average return divided by N minus one, where N is the number of returns.variance squared.NORMAL DISTRIBUTION4. A symmetric, bell-shaped frequency distribution that is completely defined by its mean and standard deviation is thegammaPoi

4、ssonbi-modalnormaluniformCHAPTER 12CHAPTER 12.GEOMETRIC AVERAGE RETURNd5. The average compound return earned per year over a multi-year period is called theaverage return.arithmeticstandardvariantgeometricrealARITHMETIC AVERAGE RETURNa6. The return earned in an average year over a multi-year period

5、is called theaverage return.arithmeticstandardvariantgeometricrealEFFICIENT CAPITAL MARKET7. An efficient capital market is one in which:brokerage commissions are zero.taxes are irrelevant.securities always offer a positive rate of return to investors.security prices are guaranteed by the U.S. Secur

6、ities and Exchange Commission to be fair.security prices reflect available information.EFFICIENT MARKETS HYPOTHESIS8. The notion that actual capital markets, such as the NYSE, are fairly priced is called the:Efficient Markets Hypothesis (EMH).Law of One Price.Open Markets Theorem.Laissez-Faire Axiom

7、.Monopoly Pricing Theorem.STRONG FORM EFFICIENCY9. The hypothesis that market prices reflect all available information every kind is calledform efficiency.openstrongsemi-strongweakstableSEMI STRONG FORM EFFICIENCY10. The hypothesis that market prices reflect all publicly-available information is cal

8、ledform efficiency.openstrongsemi-strongweakstable3 / 34WEAK FORM EFFICIENCY11. The hypothesis that market prices reflect all historical information is calledform efficiency.openstrongsemi-strongweakstableTOTALd12. The total percentage return on an equity investment is computed usingthe formula, whe

9、re P1is the purchase cost, P2represents thesale proceeds, and d is the dividend income.(P2 P ) (P1+ d) P ) (P + d)1(P1(P2(P222P d) P21P + d) P11P + d) P12DIVIDEND YIELDa13. The dividend yield is equal to, where P1is the purchase cost, P2represents the sale proceeds, and d is the dividend income.d P1

10、d P1d P2d P2d (P1+ P)2DIVIDEND YIELDc14.The Zolo Co. just declared that they are increasing their annual dividend from $1.00 per share to $1.25 per share. If the stock price remains constant, then:the capital gains yield will decrease.the capital gains yield will increase.the dividend yield will inc

11、rease.the dividend yield will also remain constant.neither the capital gains yield nor the dividend yield will change.CAPITAL GAINb15.The dollar amount of the capital gain on an investment is computed as , where P1is the purchase cost, P2represents the sale proceeds,and d is the dividend income.P P1

12、2P P21PP21P P + d12P P d215 / 34TOTAL RETURNe16. The capital gains yield plus the dividend yield on a security called the:variance of returns.geometric return.average period return.summation of returns.total return.REAL RETURNc17.The real rate of return on a stock is approximately equal to the nomin

13、al rate of return:multiplied by (1 + inflation rate).plus the inflation rate.minus the inflation rate.divided by (1 + inflation rate).divided by (1- inflation rate).REAL RETURNc18.As long as the inflation rate is positive, the real rate of return on a security investmentwill bethe nominal rate of re

14、turn.greater thanequal toless thangreater than or equal tounrelated toHISTORICAL RECORDd19. A portfolio of large company stocks would contain which one of the following types of securities?stock of the firms which represent the smallest 20 percent of the companies listed on the NYSEU.S. Treasury bil

15、lslong-term corporate bondsstocks of firms included in the S&P 500 indexlong-term government bondsHISTORICAL RECORDd20.Based on the period of 1926 through 2003,have tended to outperform other securities over the long-term.U.S. Treasury billslarge company stockslong-term corporate bondssmall company

16、stockslong-term government bonds7 / 34HISTORICAL RECORDa21. Which one of the following types of securities has tended to produce the lowest real rate of return for the period 1926 through 2003?U.S. Treasury billslong-term government bondssmall company stockslarge company stockslong-term corporate bo

17、ndsHISTORICAL RECORD22. On average, for the period 1926 through 2003:the real rate of return on U.S. Treasury bills has been negative.small company stocks have underperformed large company stocks.long-term government bonds have produced higher returns than long-term corporate bonds.the risk premium

18、on long-term corporate bonds has exceeded the premium on long-term government bonds.the risk premium on large company stocks has exceeded the risk premium on small company stocks.HISTORICAL RECORD23. Over the period of 1926 through 2003, the annual rate of return on has been more volatile than the a

19、nnual rate of return on:large company stocks; small company stocks.long-term government bonds; long-term corporate bonds.U.S. Treasury bills; long-term government bonds.long-term corporate bonds; small company stocks.large company stocks; long-term corporate bonds.HISTORICAL RECORD24. During the per

20、iod of 1926 through 2003 the annual rate of inflation:was always positive.was only negative during the 3 years of the Great Depression.never exceeded 10 percent.fluctuated significantly from one year to the next.tended to be negative during the years of World War II.HISTORICAL RECORD25. Based on the

21、 period of 1926 through 2003 the annual rate of inflation ranged frompercent topercent.a. -5;6b. -5;9c. -7;6d. -7;15e. -10; 189 / 34HISTORICAL RECORDb26. $1 invested in U.S. Treasury bills in 1926 would have increased in value toby 2003.a. $10b. $17c. $30d. $43e. $60HISTORICAL RECORDd 27. Which one

22、of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2003? Rank from highest to lowest.large company stocks, U.S. Treasury bills, long-term government bondssmall company stocks, long-term corporate bonds, large company stockssmall company stocks, l

23、ong-term government bonds, long-term corporate bondslarge company stocks, long-term corporate bonds, long-term government bondslong-term government bonds, long-term corporate bonds, U.S. Treasury billsHISTORICAL RECORDd28. $1 invested in small company stocks in 1926 would have increased value toby 2

24、003.a. $60b. $2,284c. $4,092d. $10,953e. $13,185HISTORICAL RECORD29. The highest rate of annual inflation between 1926 and 2003 was percent.710131822HISTORICAL RECORD30. The annual return on long-term government bonds has ranged between percent andpercent during the period 1926 to a. -2; 8b. -4; 6c.

25、 -5;10d. -6;29e. -7;4411 / 34HISTORICAL RECORDe31. Over the period of 1926 to 2003, small company stocks had an average return ofpercent.a. 8.8b. 10.2c. 12.4d. 14.6e. 17.5HISTORICAL AVERAGE RETURNSc32. Over the period of 1926 to 2003, the average rate of inflation was a. 2.0b. 2.7c. 3.1d. 3.8e. 4.3H

26、ISTORICAL AVERAGE RETURNSc33. The average annual return on long-term corporate bonds for the of 1926 to 2003 waspercent.a. 3.8b. 5.8c. 6.2d. 7.9e. 8.4AVERAGE RETURNSb34. The average annual return on small company stocks was about percent greater than the average annual return on large-company stocks

27、 over the period of 1926 to 2003.357911RISK PREMIUMa35. The average risk premium on U.S. Treasury bills over the period of 1926 to 2003 waspercent.a. 0.0b. 1.6c. 2.2d. 3.1e. 3.813 / 34RISK PREMIUMa36. Which one of the following is a correct statement concerning premium?The greater the volatility of

28、returns, the greater the risk premium.The lower the volatility of returns, the greater the risk premium.The lower the average rate of return, the greater the risk premium.The risk premium is not correlated to the average rate of return.The risk premium is not affected by the volatility of returns.RI

29、SK PREMIUMc37. The risk premium is computed bythe average return for investment.subtracting the inflation rate fromadding the inflation rate tosubtracting the average return on the U.S. Treasury bill fromadding the average return on the U.S. Treasury bill tosubtracting the average return on long-ter

30、m government bonds fromRISKPREMIUMc38. The excess return you earn by moving from a relatively risk-free investment to a risky investment is called the:geometric average return.inflation premium.risk premium.time premium.arithmetic average return.RISK PREMIUMb39.To convince investors to accept greate

31、r volatility in the annual rate of return on an investment, you must:a. decreasetherisk premium.b. increasetherisk premium.c. decreasetheexpected rate of return.d. decreasetherisk-free rate of return.e. increasetherisk-free rate of return.FREQUENCY DISTRIBUTION40. Which one of the following takes th

32、e shape of a bell curve?frequency distributionvariancerisk premium graphstandard deviationdeviation of returnsVARIANCEe41.Which of the following statements are correct concerning the variance of the annual returns on an investment?The larger the variance, the more the actual returns tend to differ f

33、rom the average return.The larger the variance, the larger the standard deviation.The larger the variance, the greater the risk of the investment.The larger the variance, the higher the expected return.I and III onlyII, III, and IV onlyI, III, and IV onlyI, II, and III onlyI, II, III, and IVVARIANCE

34、a42.The variance of returns is computed by dividing the sum of the:a. squareddeviationsby the numberof returns minus one.b. averagereturns bythe number ofreturns minus one.c. averagereturns bythe number ofreturns plus one.d. squareddeviationsby the average rate of return.e. squareddeviationsby the n

35、umber of returns plus one.STANDARD DEVIATION43. Which of the following statements concerning the standard deviation are correct?The greater the standard deviation, the lower the risk.The standard deviation is a measure of volatility.The higher the standard deviation, the less certain the rate of ret

36、urn in any one given year.The higher the standard deviation, the higher the expected return.I and III onlyII, III, and IV onlyI, III, and IV onlyI, II, and III onlyI, II, III, and IVSTANDARD DEVIATION44. The standard deviation on small company stocks:is greater than the standard deviation on large c

37、ompany stocks.is less than the standard deviation on large company stocks.had an average value of about 33 percent for the period 1926 to 2003.had an average value of about 20 percent for the period 1926 to 2003.I and III onlyI and II onlyII and III only15 / 34II and IV onlyI and IV onlyARITHMETIC V

38、S. GEOMETRIC AVERAGES45. Estimates using the arithmetic average will probably tend to values over the long-term while estimates using the geometric average will probably tend tovalues over the short-term.overestimate; overestimateoverestimate; underestimateunderestimate; overestimateunderestimate; u

39、nderestimateaccurately; accuratelyMARKET EFFICIENCYd46. In an efficient market, the price of a security will:always rise immediately upon the release of new information with further price adjustments related to that information.react to new information over a two-day period after which time further

40、price adjustments related to that information will occur.rise sharply when new information is first released and then decline to a new stable level by the following day.react immediately to new information with no further price adjustments related to that information.be slow to react for the first f

41、ew hours after new information is released allowing time for that information to be reviewed and analyzed.MARKET EFFICIENCY47. If the financial markets are efficient, then investors should expect their investments in those markets to:earn extraordinary returns on a routine basis.generally have posit

42、ive net present values.generally have zero net present duce arbitrage opportunities on a routine duce negative returns on a routine basis.MARKET EFFICIENCY48. Which one of the following statements is correct concerning market efficiency?Real asset markets are more efficient than financial markets.If

43、 a market is efficient, arbitrage opportunities should be common.In an efficient market, some market participants will have advantage over others.A firm will generally receive a fair price when it sells shares stock.New information will gradually be reflected in a stocks price avoid any sudden chang

44、e in the price of the stock.17 / 34MARKET EFFICIENCY49. Financial markets fluctuate daily because they:are inefficient.slowly react to new information.are continually reacting to new information.offer tremendous arbitrage opportunities.only reflect historical information.MARKET EFFICIENCY50. Insider

45、 trading does not offer any advantages if the financial markets are:weak form efficient.semiweak-form efficient.semistrong-form efficient.strong-form efficient.inefficient.MARKET EFFICIENCY51. According to theory, studying historical prices in order to identify mispriced stocks will not work in mark

46、ets that areefficient.weak-formIII.strong-formI onlyII onlyI and II onlyII and III onlyI, II, and IIIMARKET EFFICIENCYe52. Which of the following tend to reinforce the argument that financial markets are efficient?Information spreads rapidly in todays world.There is tremendous competition in the fin

47、ancial markets.Market prices continually fluctuate.Market prices react suddenly to unexpected news announcements.I and III onlyII and IV onlyI, II, and III onlyII, III, and IV onlyI, II, III, and IVMARKET EFFICIENCY53. If you excel in analyzing the future outlook of firms, you would prefer that the

48、financial markets beform efficient so that can have an advantage in the marketplace.weaksemiweaksemistrongstrongperfect19 / 34MARKET EFFICIENCYc54.Your best friend works in the finance office of the Delta Corporation. You are aware that this friend trades Delta stock based on information he overhear

49、s in the office. You know that this information is not known to the general public. Your friend continually brags to you about the profits he earns trading Delta stock. Based on this information, you would tend to argue that the financial markets are at bestform efficient.weaksemiweaksemistrongstron

50、gperfectMARKET EFFICIENCYc55.The U.S. Securities and Exchange Commission periodically charges individuals for insider trading and claims those individuals have unfair profits. Based on this fact, you would tend to argue that the financial markets are at bestform efficient.weaksemiweaksemistrongstron

51、gperfectMARKET EFFICIENCYb56.Individuals that continually monitor the financial markets seeking mispriced securities:tend to make substantial profits on a daily basis.tend to make the markets more efficient.are never able to find a security that is temporarily mispriced.are always quite successful u

52、sing only well-known public information as their basis of evaluation.are always quite successful using only historical price information their basis of evaluation.DOLLARRETURNS57. One year ago, you purchased a stock at a price of $32.50. The stockpays quarterly dividends of $.40 per share. Today, th

53、e stock is worth$34.60 per share. What is the total amount of your dividend income to date from this investment?a. $.40b. $1.60c. $2.10d. $2.50e. $3.7021 / 34DOLLAR RETURNSd58. Six months ago, you purchased 100 shares of stock in ABC Co. at a price of $43.89 a share. ABC stock pays a quarterly divid

54、end of $.10 a share. Today, you sold all of your shares for $45.13 per share. What is the total amount of your capital gains on this investment?a. $1.24b. $1.64c. $40.00d. $124.00e. $164.00DOLLAR RETURNSd59. A year ago, you purchased 300 shares of IXC Technologies, Inc. stock at a price of $9.03 per

55、 share. The stock pays an annual dividend of$.10 per share. Today, you sold all of your shares for $28.14 per share. What is your total dollar return on this investment?a. $5,703b. $5,733c. $5,753d. $5,763e. $5,853DIVIDENDYIELDb60. You purchased 200 shares of stock at a price of $36.72 per share. Ov

56、er the last year, you have received total dividend income of $322. What is the dividend yield?3.2 percent4.4 percent6.8 percent9.2 percent11.4 percentDIVIDEND YIELDd61. Winslow, Inc. stock is currently selling for $40 a share. The stock has a dividend yield of 3.8 percent. How much dividend income w

57、ill you receive per year if you purchase 500 shares of this stock?a. $152b. $190c. $329d. $760e. $1,053DIVIDENDYIELDc62. One year ago, you purchased a stock at a price of $32 a share. Today, you sold the stock and realized a total return of 25 percent. Yourcapital gain was $6 a share. What was your

58、dividend yield on this stock?1.25 percent3.75 percent6.25 percent18.75 percent21.25 percent23 / 34CAPITAL GAIN63. You just sold 200 shares of Langley, Inc. stock at a price of $38.75 a share. Last year you paid $41.50 a share to buy this stock. Over the course of the year, you received dividends tot

59、aling $1.64 per share.What is your capital gain on this investment? a. -$550b. -$222c. -$3d. $550e. $878CAPITALGAIN64. You purchased 300 shares of Deltona, Inc. stock for $44.90 a share.You have received a total of $630 in dividends and $14,040 in proceeds from selling the shares. What is your capit

60、al gains yield on this stock?4.06 percent4.23 percent4.68 percent8.55 percent8.91 percentCAPITAL GAINd65.Today, you sold 200 shares of SLG, Inc. stock. Your total return on these shares is 12.5 percent. You purchased the shares one year ago at a price of $28.50 a share. You have received a total of