投资学期末题库答案和分析一供参考.docx
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投资学期末题库答案和分析一供参考
TUTORIAL–SESSION01
CHAPTER01
1.Discusstheagencyproblem.
2.Discussthesimilaritiesanddifferencesbetweenrealandfinancialassets.
3.Discussthefollowingongoingtrendsastheyrelatetothefieldofinvestments:
globalization,financialengineering,securitization,andcomputernetworks.
CHAPTER02
Usethefollowingtoanswerquestions1to3:
Considerthefollowingthreestocks:
1.Theprice-weightedindexconstructedwiththethreestocksis
A)30
B)40
C)50
D)60
E)70
Answer:
BDifficulty:
Easy
Rationale:
($40+$70+$10)/3=$40.
2.Thevalue-weightedindexconstructedwiththethreestocksusingadivisorof100is
A)1.2
B)1200
C)490
D)4900
E)49
Answer:
C Difficulty:
Moderate
Rationale:
The sum of the value of the three stocks divided by 100 is 490:
[($40 x 200) + ($70 x 500) + ($10 x 600)] /100 = 490
3.Assumeatthesepricesthevalue-weightedindexconstructedwiththethreestocksis490.WhatwouldtheindexbeifstockBissplit2for1andstockC4for1?
A)265
B)430
C)355
D)490
E)1000
Answer:
DDifficulty:
Moderate
Rationale:
Value-weightedindexesarenotaffectedbystocksplits.
4.Aninvestorpurchasesonemunicipalandonecorporatebondthatpayratesofreturnof8%and10%,respectively.Iftheinvestorisinthe20%marginaltaxbracket,hisorheraftertaxratesofreturnonthemunicipalandcorporatebondswouldbe________and______,respectively.
A)8%and10%
B)8%and8%
C)6.4%and8%
D)6.4%and10%
E)10%and10%
Answer:
BDifficulty:
Moderate
Rationale:
rc=0.10(1-0.20)=0.08,or8%;rm=0.08(1-0)=8%.
5.A5.5%20-yearmunicipalbondiscurrentlypricedtoyield7.2%.Forataxpayerinthe33%marginaltaxbracket,thisbondwouldofferanequivalenttaxableyieldof:
A)8.20%.
B)10.75%.
C)11.40%.
D)4.82%.
E)noneoftheabove.
Answer:
BDifficulty:
Moderate
Rationale:
0.072=rm(1-t);0.072=rm/(0.67);rm=0.1075=10.75%
6.Inorderforyoutobeindifferentbetweentheaftertaxreturnsonacorporatebondpaying8.5%andatax-exemptmunicipalbondpaying6.12%,whatwouldyourtaxbracketneedtobe?
A)33%
B)72%
C)15%
D)28%
E)Cannottellfromtheinformationgiven
.0612=.085(1-t);(1-t)=0.72;t=.28
7.Supposeaninvestorisconsideringacorporatebondwitha7.17%before-taxyieldandamunicipalbondwitha5.93%before-taxyield.Atwhatmarginaltaxratewouldtheinvestorbeindifferentbetweeninvestinginthecorporateandinvestinginthemuni?
A)15.4%
B)23.7%
C)39.5%
D)17.3%
E)12.4%
tm=1-(5.93%/7.17%)=17.29%
Usethefollowingtoanswerquestions8to9:
8.Basedontheinformationgiven,foraprice-weightedindexofthethreestockscalculate:
A)therateofreturnforthefirstperiod(t=0tot=1).
B)thevalueofthedivisorinthesecondperiod(t=2).AssumethatStockAhada2-1splitduringthisperiod.
C)therateofreturnforthesecondperiod(t=1tot=2).
A.Theprice-weightedindexattime0is(70+85+105)/3=86.67.Theprice-weightedindexattime1is(72+81+98)/3=83.67.Thereturnontheindexis83.67/86.67-1=-3.46%.
B.Thedivisormustchangetoreflectthestocksplit.Becausenothingelsefundamentallychanged,thevalueoftheindexshouldremain83.67.Sothenewdivisoris(36+81+98)/83.67=2.57.Theindexvalueis(36+81+98)/2.57=83.67.
C.Therateofreturnforthesecondperiodis83.67/83.67-1=0.00%
9.Basedontheinformationgivenforthethreestocks,calculatethefirst-periodratesofreturn(fromt=0tot=1)on
A)amarket-value-weightedindex.
B)anequally-weightedindex.
C)ageometricindex.
A.Thetotalmarketvalueattime0is$70*200+$85*500+$105*300=$88,000.Thetotalmarketvalueattime1is$72*200+$81*500+$98*300=$84,300.Thereturnis$84,300/$88,000-1=-4.20%.
B.ThereturnonStockAforthefirstperiodis$72/$70-1=2.86%.ThereturnonStockBforthefirstperiodis$81/$85-1=-4.71%.ThereturnonStockCforthefirstperiodis$98/$105-1=-6.67%.Thereturnonanequallyweightedindexofthethreestocksis(2.86%-4.71%-6.67%)/3=-2.84%
C.Thegeometricaveragereturnis[(1+.0286)(1-.0471)(1-.0667)](1/3)-1=[(1.0286)(0.9529)(0.9333)]0.3333-1=-2.92%
10.Discusstheadvantagesanddisadvantagesofcommonstockownership,relativetootherinvestmentalternatives.
CHAPTER03
1.Assumeyoupurchased200sharesofXYZcommonstockonmarginat$70persharefromyourbroker.Iftheinitialmarginis55%,howmuchdidyouborrowfromthebroker?
A)$6,000
B)$4,000
C)$7,700
D)$7,000
E)$6,300
Answer:
EDifficulty:
Moderate
Rationale:
200shares*$70/share*(1-0.55)=$14,000*(0.45)=$6,300.
2.Yousoldshort200sharesofcommonstockat$60pershare.Theinitialmarginis60%.Yourinitialinvestmentwas
A)$4,800.
B)$12,000.
C)$5,600.
D)$7,200.
E)noneoftheabove.
Answer:
DDifficulty:
Moderate
Rationale:
200shares*$60/share*0.60=$12,000*0.60=$7,200
3.Youpurchased100sharesofABCcommonstockonmarginat$70pershare.Assumetheinitialmarginis50%andthemaintenancemarginis30%.Belowwhatstockpricelevelwouldyougetamargincall?
Assumethestockpaysnodividend;ignoreinterestonmargin.
A)$21
B)$50
C)$49
D)$80
E)noneoftheabove
Answer:
BDifficulty:
Difficult
Rationale:
100shares*$70*.5=$7,000*0.5=$3,500(loanamount);0.30=(100P-$3,500)/100P;30P=100P-$3,500;-70P=-$3,500;P=$50.
4.Youpurchased100sharesofcommonstockonmarginat$45pershare.Assumetheinitialmarginis50%andthestockpaysnodividend.Whatwouldthemaintenancemarginbeifamargincallismadeatastockpriceof$30?
Ignoreinterestonmargin.
A)0.33
B)0.55
C)0.43
D)0.23
E)0.25
Answer:
EDifficulty:
Difficult
Rationale:
100shares*$45/share*0.5=$4,500*0.5=$2,250(loanamount);X=[100($30)-$2,250]/100($30);X=0.25.
5.Youpurchased300sharesofcommonstockonmarginfor$60pershare.Theinitialmarginis60%andthestockpaysnodividend.Whatwouldyourrateofreturnbeifyousellthestockat$45pershare?
Ignoreinterestonmargin.
A)25%
B)-33%
C)44%
D)-42%
E)–54%
Answer:
DDifficulty:
Difficult
Rationale:
300($60)(0.60)=$10,800investment;300($60)=$18,000*(0.40)=$7,200loan;Proceedsaftersellingstockandrepayingloan:
$13,500-$7,200=$6,300;Return=($6,300-$10,800)/$10,800=-41.67%.
6.Assumeyousellshort100sharesofcommonstockat$45pershare,withinitialmarginat50%.Whatwouldbeyourrateofreturnifyourepurchasethestockat$40/share?
Thestockpaidnodividendsduringtheperiod,andyoudidnotremoveanymoneyfromtheaccountbeforemakingtheoffsettingtransaction.
A)20%
B)25%
C)22%
D)77%
E)noneoftheabove
Answer:
CDifficulty:
Moderate
Rationale:
Profitonstock=($45-$40)*100=$500,$500/$2,250(initialinvestment)=22.22%
7.YouwanttopurchaseXYZstockat$60fromyourbrokerusingaslittleofyourownmoneyaspossible.Ifinitialmarginis50%andyouhave$3000toinvest,howmanysharescanyoubuy?
A)100shares
B)200shares
C)50shares
D)500shares
E)25shares
Answer:
ADifficulty:
Moderate
Rationale:
.5=[(Q*$60)-$3,000]/(Q*$60);$30Q=$60Q-$3,000;$30Q=$3,000;Q=100.
8.Youbuy300sharesofQualitycorpfor$30pershareanddepositinitialmarginof50%.ThenextdayQualitycorp'spricedropsto$25pershare.Whatisyouractualmargin?
A)50%
B)40%
C)33%
D)60%
E)25%
Answer:
BDifficulty:
Moderate
Rationale:
AM=[300($25)-.5(300)($30)]/[300($25)]=.40
9.Yousoldshort100sharesofcommonstockat$45pershare.Theinitialmarginis50%.Yourinitialinvestmentwas
A)$4,800.
B)$12,000.
C)$2,250.
D)$7,200.
E)noneoftheabove.
Answer:
CDifficulty:
Moderate
Rationale:
100shares*$45/share*0.50=$4,500*0.50=$2,250
10.ListthreefactorsthatarelistingrequirementsfortheNewYorkStockExchange.Whydoestheexchangehavesuchrequirements?
CHAPTER04
1.MultipleMutualFundshadyear-endassetsof$457,000,000andliabilitiesof$17,000,000.Therewere24,300,000sharesinthefundatyear-end.WhatwasMultipleMutual'sNetAssetValue?
A)$18.11
B)$18.81
C)$69.96
D)$7.00
E)$181.07
Answer:
ADifficulty:
Moderate
Rationale:
(457,000,000-17,000,000)/24,300,000=$18.11
2.DiversifiedPortfolioshadyear-endassetsof$279,000,000andliabilitiesof$43,000,000.IfDiversified'sNAVwas$42.13,howmanysharesmusthavebeenheldinthefund?
A)43,000,000
B)6,488,372
C)5,601,709
D)1,182,203
E)Noneoftheabove.
Answer:
CDifficulty:
Moderate
Rationale:
($279,000,000-43,000,000)/$42.13=5,601,708.996.
3.PinnacleFundhadyear-endassetsof$825,000,000andliabilitiesof$25,000,000.IfPinnacle'sNAVwas$32.18,howmanysharesmusthavebeenheldinthefund?
A)21,619,346,92
B)22,930,546.28
C)24,860,161.59
D)25,693,645.25
E)Noneoftheabove.
Answer:
CDifficulty:
Moderate
Rationale:
($825,000,000-25,000,000)/$32.18=24,860,161.59.
4.TheProfitabilityFundhadNAVpershareof$17.50onJanuary1,2005.OnDecember31ofthesameyearthefund'sNAVwas$19.47.Incomedistributionswere$0.75andthefundhadcapitalgaindistributionsof$1.00.Withoutconsideringtaxesandtransactionscosts,whatrateofreturndidaninvestorreceiveontheProfitabilityfundlastyear?
A)11.26%
B)15.54%
C)16.97%
D)21.26%
E)9.83%
Answer