投资学第7版testbank答案03Word格式.docx

投资学第7版testbank答案03Word格式.docx

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C）Specialistsstandreadytotradeatquotedbidandaskprices.

D）Specialistscannottradeintheirownaccounts.

E）A,B,andCarealltrue.

Moderate

Thespecialists'

functionsarealloftheitemslistedinA,B,andC.Inaddition,specialiststradeintheirownaccounts.

3.Investmentbankers

A）actasintermediariesbetweenissuersofstocksandinvestors.

B）actasadvisorstocompaniesinhelpingthemanalyzetheirfinancialneedsandfindbuyersfornewlyissuedsecurities.

C）acceptdepositsfromsaversandlendthemouttocompanies.

E）A,B,andC.

DDifficulty:

Theroleoftheinvestmentbankeristoassistthefirminissuingnewsecurities,bothinadvisoryandmarketingcapacities.Theinvestmentbankerdoesnothavearolecomparabletoacommercialbank,asindicatedinC.

4.Ina"

firmcommitment"

A）theinvestmentbankerbuysthestockfromthecompanyandresellstheissuetothepublic.

B）theinvestmentbankeragreestohelpthefirmsellthestockatafavorableprice.

C）theinvestmentbankerfindsthebestmarketingarrangementfortheinvestmentbankingfirm.

D）BandC.

E）AandB.

ADifficulty:

5.Thesecondarymarketconsistsof

A）transactionsontheAMEX.

B）transactionsintheOTCmarket.

C）transactionsthroughtheinvestmentbanker.

ThesecondarymarketconsistsoftransactionsontheorganizedexchangesandintheOTCmarket.Theinvestmentbankerisinvolvedintheplacementofnewissuesintheprimarymarket.

6.TheuseoftheInternettotradeandunderwritesecurities

A）isillegalunderSECregulations.

B）isregulatedbytheNewYorkStockExchange.

C）decreasesunderwritingcostsforanewsecurityissue.

D）increasesunderwritingcostsforanewsecurityissue.

E）isregulatedbytheNationalAssociationofSecuritiesDealers.

CDifficulty:

TheSECpermitstradingandunderwritingofsecuritiesovertheInternet,buthasrequiredfirmsparticipatinginthisactivitytotakestepstosafeguardinvestmentfunds.Thisformofunderwritingisexpectedtogrowquicklyduetoitslowercost.

7.Initialmarginrequirementsaredeterminedby

A）theSecuritiesandExchangeCommission.

B）theFederalReserveSystem.

C）theNewYorkStockExchange.

E）AandB

BDifficulty:

TheBoardofGovernorsoftheFederalReserveSystemdeterminesinitialmarginrequirements.TheNewYorkStockExchangedeterminesmaintenancemarginrequirementsonNYSE-listedstocks;

however,brokersusuallysetmaintenancemarginrequirementsabovethoseestablishedbytheNYSE.

8.YoupurchasedXYZstockat$50pershare.Thestockiscurrentlysellingat$65.Yourgainsmaybeprotectedbyplacinga__________

A）stop-buyorder

B）limit-buyorder

C）marketorder

D）limit-sellorder

E）noneoftheabove.

Withalimit-sellorder,yourstockwillbesoldonlyataspecifiedprice,orbetter.Thus,suchanorderwouldprotectyourgains.Noneoftheotherordersareapplicabletothissituation.

9.YousoldABCstockshortat$80pershare.Yourlossescouldbeminimizedbyplacinga__________:

A）limit-sellorder

C）stop-buyorder

D）day-order

Withastop-buyorder,thestockwouldbepurchasedifthepriceincreasedtoaspecifiedlevel,thuslimitingyourloss.Noneoftheotherordersareapplicabletothissituation.

10.Whichoneofthefollowingstatementsregardingordersisfalse

A）Amarketorderissimplyanordertobuyorsellastockimmediatelyattheprevailingmarketprice.

B）Alimitsellorderiswhereinvestorsspecifypricesatwhichtheyarewillingtosellasecurity.

C）IfstockABCissellingat$50,alimit-buyordermayinstructthebrokertobuythestockifandwhenthesharepricefallsbelow$45.

D）Adayorderexpiresatthecloseofthetradingday.

E）Noneoftheabove.

Alloftheorderdescriptionsabovearecorrect.

11.Restrictionsontradinginvolvinginsiderinformationapplytothefollowingexcept

A）corporateofficersanddirectors.

B）relativesofcorporatedirectorsandofficers.

C）majorstockholders.

D）Alloftheabovearesubjecttoinsidertradingrestrictions.

E）Noneoftheaboveissubjecttoinsidertradingrestrictions.

A,B,andCarecorporateinsidersandaresubjecttorestrictionsontradingoninsideinformation.Further,theSupremeCourtheldthattradersmaynottradeonnonpublicinformationeveniftheyarenotinsiders.

12.Thecostofbuyingandsellingastockconsistsof__________.

A）broker'

scommissions

B）dealer'

sbid-askedspread

C）apriceconcessionaninvestormaybeforcedtomake.

Alloftheabovearepossiblecostsofbuyingandsellingastock.

13.Assumeyoupurchased200sharesofXYZcommonstockonmarginat$70persharefromyourbroker.Iftheinitialmarginis55%,howmuchdidyouborrowfromthebroker

A）$6,000

B）$4,000

C）$7,700

D）$7,000

E）$6,300

200shares*$70/share*=$14,000*=$6,300.

14.Yousoldshort200sharesofcommonstockat$60pershare.Theinitialmarginis60%.Yourinitialinvestmentwas

A）$4,800.

B）$12,000.

C）$5,600.

D）$7,200.

200shares*$60/share*=$12,000*=$7,200

15.Youpurchased100sharesofABCcommonstockonmarginat$70pershare.Assumetheinitialmarginis50%andthemaintenancemarginis30%.BelowwhatstockpricelevelwouldyougetamargincallAssumethestockpaysnodividend;

ignoreinterestonmargin.

A）$21

B）$50

C）$49

D）$80

E）noneoftheabove

Difficult

100shares*$70*.5=$7,000*=$3,500（loanamount）;

=（100P-$3,500）/100P;

30P=100P-$3,500;

-70P=-$3,500;

P=$50.

16.Youpurchased100sharesofcommonstockonmarginat$45pershare.Assumetheinitialmarginis50%andthestockpaysnodividend.Whatwouldthemaintenancemarginbeifamargincallismadeatastockpriceof$30Ignoreinterestonmargin.

A）

B）

C）

D）

E）

100shares*$45/share*=$4,500*=$2,250（loanamount）;

X=[100（$30）-$2,250]/100（$30）;

X=.

17.Youpurchased300sharesofcommonstockonmarginfor$60pershare.Theinitialmarginis60%andthestockpaysnodividend.Whatwouldyourrateofreturnbeifyousellthestockat$45pershareIgnoreinterestonmargin.

A）25%

B）-33%

C）44%

D）-42%

E）–54%

300（$60）=$10,800investment;

300（$60）=$18,000X=$7,200loan;

Proceedsaftersellingstockandrepayingloan:

$13,500-$7,200=$6,300;

Return=（$6,300-$10,800）/$10,800=-%.

18.Assumeyousellshort100sharesofcommonstockat$45pershare,withinitialmarginat50%.Whatwouldbeyourrateofreturnifyourepurchasethestockat$40/shareThestockpaidnodividendsduringtheperiod,andyoudidnotremoveanymoneyfromtheaccountbeforemakingtheoffsettingtransaction.

A）20%

B）25%

C）22%

D）77%

Profitonstock=（$45-$40）*100=$500,$500/$2,250（initialinvestment）=%.

19.Yousoldshort300sharesofcommonstockat$55pershare.Theinitialmarginis60%.Atwhatstockpricewouldyoureceiveamargincallifthemaintenancemarginis35%

A）$51

B）$65

C）$35

D）$40

Equity=300（$55）*=$26,400;

=（$26,400-300P）/300P;

105P=26,400-300P;

405P=26,400;

P=$

20.Assumeyousoldshort100sharesofcommonstockat$50pershare.Theinitialmarginis60%.Whatwouldbethemaintenancemarginifamargincallismadeatastockpriceof$60

A）40%

B）33%

C）35%

D）25%

$5,000X=$8,000;

[$8,000-100（$60）]/100（$60）=33%.

21.Specialistsonstockexchangesperformthefollowingfunctions

A）Actasdealersintheirownaccounts.

B）Analyzethesecuritiesinwhichtheyspecialize.

C）Provideliquiditytothemarket.

E）AandC.

Specialistsarebothbrokersanddealersandprovideliquiditytothemarket;

theyarenotanalysts.

22.Sharesforshorttransactions

A）areusuallyborrowedfromotherbrokers.

B）aretypicallysharesheldbytheshortseller'

sbrokerinstreetname.

C）areborrowedfr