投资学第7版Test Bank答案25Word格式.docx

投资学第7版Test Bank答案25Word格式.docx

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E）noneoftheabove

Answer:

ADifficulty:

Easy

Rationale:

AmericanDepositoryReceipts（ADRs）allowU.S.investorstoinvestinforeignstocksviatransactionsontheU.S.stockexchanges.

2.__________referstothepossibilityofexpropriationofassets,changesintaxpolicy,andthepossibilityofrestrictionsonforeignexchangetransactions.

A）defaultrisk

B）foreignexchangerisk

C）marketrisk

D）politicalrisk

DDifficulty:

Alloftheabovefactorsarepoliticalinnature,andthusareexamplesofpoliticalrisk.

3.__________aremutualfundsthatinvestinonecountryonly.

CDifficulty:

Mutualfundsthatinvestinthestocksofonecountryonlyarecalledsingle-countryfunds.

4.Theperformanceofaninternationallydiversifiedportfoliomaybeaffectedby

A）countryselection

B）currencyselection

C）stockselection

Alloftheabovefactorsmayaffecttheperformanceofaninternationalportfolio.

5.Overtheperiod2001-2005,mostcorrelationsbetweentheU.S.stockindexandstock-indexportfoliosofothercountrieswere

A）negative

B）positivebutlessthan.9

C）approximatelyzero

D）.9orabove

BDifficulty:

Moderate

Correlationcoefficientsweretypicallybelow.9,whilecorrelationsbetweenwell-diversifiedU.S.marketportfoliosweretypicallyabove.9.SeeTable25.10.

6.The__________indexisawidelyusedindexofnon-U.S.stocks.

A）CBOE

B）DowJones

C）EAFE

TheEurope,Australia,FarEast（EAFE）indexcomputedbyMorganStanleyisawidelyusedindexofnon-U.S.stocks.

7.The__________equitymarkethadthehighestaveragelocalcurrencyreturnbetween2001and2005.

A）Russian

B）Norwegian

C）U.K.

D）U.S.

SeeTable25.9.

8.The__________equitymarkethadthehighestaverageU.S.dollarreturnbetween2001and2005.

B）Finnish

C）Columbian

9.The__________equitymarkethadthehighestaverageU.S.dollarstandarddeviationbetween2001and2005.

A）Turkish

C）Indonesian

10.The__________equitymarkethadthehighestaveragelocalcurrencystandarddeviationbetween2001and2005.

11.In2005,theU.S.equitymarketrepresented__________oftheworldequitymarket.

A）19%

B）60%

C）43%

D）39%

SeeTable25.1.

12.ThestraightforwardgeneralizationofthesimpleCAPMtointernationalstocksisproblematicbecause__________.

A）inflationriskperceptionsbydifferentinvestorsindifferentcountrieswilldifferasconsumptionbasketsdiffer

B）investorsindifferentcountriesviewexchangerateriskfromtheperspectiveofdifferentdomesticcurrencies

C）taxes,transactioncostsandcapitalbarriersacrosscountriesmakeitdifficultforinvestortoholdaworldindexportfolio

E）noneoftheabove.

AlloftheabovefactorsmakeabroadgeneralizationoftheCAPMtointernationalstocksproblematic.

13.Theyieldona1-yearbillintheU.K.is8%andthepresentexchangerateis1pound=U.S.$1.60.Ifyouexpecttheexchangeratetobe1pound-U.S.$1.50ayearfromnow,thereturnaU.S.investorcanexpecttoearnbyinvestinginU.K.billsis

A）-6.7%

B）0%

C）8%

D）1.25%

r（US）=[1+r（UK）]F0/E0-1;

[1.08][1.50/1.60]-1=1.25%.

14.Supposethe1-yearrisk-freerateofreturnintheU.S.is5%.Thecurrentexchangerateis1pound=U.S.$1.60.The1-yearforwardrateis1pound=$1.57.Whatistheminimumyieldona1-yearrisk-freesecurityinBritainthatwouldinduceaU.S.investortoinvestintheBritishsecurity?

A）2.44%

B）2.50%

C）7.00%

D）7.62%

1.05=（1+r）X