02 投资学 第七版.docx

02 投资学 第七版.docx

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02投资学第七版

MultipleChoiceQuestions

E1.Whichofthefollowingisnotacharacteristicofamoneymarketinstrument?

A）liquidity

B）marketability

C）longmaturity

D）liquiditypremium

E）CandD

Rationale:

Moneymarketinstrumentsareshort-terminstrumentswithhighliquidityandmarketability;theydonothavelongmaturitiesnorpayliquiditypremiums.

D2.Whichoneofthefollowingisnotamoneymarketinstrument?

A）aTreasurybill

B）anegotiablecertificateofdeposit

C）commercialpaper

D）aTreasurybond

E）aEurodollaraccount

Rationale:

Moneymarketinstrumentsareinstrumentswithmaturitiesofoneyearorless,whichappliestoalloftheaboveexceptTreasurybonds.SeeTable2.1.

B3.T-billsarefinancialinstrumentsinitiallysoldby________toraisefunds.

A）commercialbanks

B）theU.S.government

C）stateandlocalgovernments

D）agenciesofthefederalgovernment

E）BandD

Rationale:

OnlytheU.S.governmentsellsT-billsintheprimarymarket.

B4.ThebidpriceofaT-billinthesecondarymarketis

A）thepriceatwhichthedealerinT-billsiswillingtosellthebill.

B）thepriceatwhichthedealerinT-billsiswillingtobuythebill.

C）greaterthantheaskedpriceoftheT-bill.

D）thepriceatwhichtheinvestorcanbuytheT-bill.

E）neverquotedinthefinancialpress.

Rationale:

T-billsaresoldinthesecondarymarketviadealers;thebidpricequotedinthefinancialpressisthepriceatwhichthedealeriswillingtobuythebill.

C5.Commercialpaperisashort-termsecurityissuedby________toraisefunds.

A）theFederalReserveBank

B）commercialbanks

C）large,well-knowncompanies

D）theNewYorkStockExchange

E）stateandlocalgovernments

Rationale:

Commercialpaperisshort-termunsecuredfinancingissueddirectlybylarge,presumablysafecorporations.

C6.WhichoneofthefollowingtermsbestdescribesEurodollars:

A）dollar-denominateddepositsinEuropeanbanks.

B）dollar-denominateddepositsatbranchesofforeignbanksintheU.S.

C）dollar-denominateddepositsatforeignbanksandbranchesofAmericanbanksoutsidetheU.S.

D）dollar-denominateddepositsatAmericanbanksintheU.S.

E）dollarsthathavebeenexchangedforEuropeancurrency.

Rationale:

AlthoughoriginallyEurodollarswereusedtodescribedollar-denominateddepositsinEuropeanbanks,todaythetermhasbeenextendedtoapplytoanydollar-denominateddepositoutsidetheU.S.

D7.DepositsofcommercialbanksattheFederalReserveBankarecalled__________.

A）bankers'acceptances

B）repurchaseagreements

C）timedeposits

D）federalfunds

E）reserverequirements

Rationale:

Thefederalfundsarerequiredforthebanktomeetreserverequirements,whichisawayofinfluencingthemoneysupply.Nosubstitutesforfedfundsarepermitted.

C8.TheinterestratechargedbybankswithexcessreservesataFederalReserveBanktobanksneedingovernightloanstomeetreserverequirementsiscalledthe_________.

A）primerate

B）discountrate

C）federalfundsrate

D）callmoneyrate

E）moneymarketrate

D9.Whichofthefollowingstatementsis（are）trueregardingmunicipalbonds?

I）Amunicipalbondisadebtobligationissuedbystateorlocalgovernments.

II）Amunicipalbondisadebtobligationissuedbythefederalgovernment.

III）Theinterestincomefromamunicipalbondisexemptfromfederalincometaxation.

IV）Theinterestincomefromamunicipalbondisexemptfromstateandlocaltaxationintheissuingstate.

A）IandIIonly

B）IandIIIonly

C）I,II,andIIIonly

D）I,III,andIVonly

E）IandIVonly

Rationale:

Stateandlocalgovernmentsandagenciesthereofissuemunicipalbondsonwhichtheinterestincomeisfreefromallfederaltaxesandisexemptfromstateandlocaltaxationintheissuingstate.

D10.Whichofthefollowingstatementsistrueregardingacorporatebond?

A）Acorporatecallablebondgivestheholdertherighttoexchangeitforaspecifiednumberofthecompany'scommonshares.

B）Acorporatedebentureisasecuredbond.

C）Acorporateindentureisasecuredbond.

D）Acorporateconvertiblebondgivestheholdertherighttoexchangethebondforaspecifiednumberofthecompany'scommonshares.

E）Holdersofcorporatebondshavevotingrightsinthecompany.

Rationale:

StatementDistheonlytruestatement;allotherstatementsdescribesomethingotherthanthetermspecified.

E11.Intheeventofthefirm'sbankruptcy

A）themostshareholderscanloseistheiroriginalinvestmentinthefirm'sstock.

B）commonshareholdersarethefirstinlinetoreceivetheirclaimsonthefirm'sassets.

C）bondholdershaveclaimtowhatisleftfromtheliquidationofthefirm'sassetsafterpayingtheshareholders.

D）theclaimsofpreferredshareholdersarehonoredbeforethoseofthecommonshareholders.

E）AandD.

Rationale:

Shareholdershavelimitedliabilityandhaveresidualclaimsonassets.Bondholdershaveapriorityclaimonassets,andpreferredshareholdershavepriorityovercommonshareholders.

C12.Whichofthefollowingistrueregardingafirm'ssecurities?

A）Commondividendsarepaidbeforepreferreddividends.

B）Preferredstockholdershavevotingrights.

C）Preferreddividendsareusuallycumulative.

D）Preferreddividendsarecontractualobligations.

E）Commondividendsusuallycanbepaidifpreferreddividendshavebeenskipped.

Rationale:

Theonlyadvantagesofpreferreddividendsovercommondividendsarethatpreferreddividendsmustbepaidfirstandanyskippedpreferreddividendsmustbepaidbeforecommondividendsmaybepaid.

E13.WhichofthefollowingistrueoftheDowJonesIndustrialAverage?

A）Itisavalue-weightedaverageof30largeindustrialstocks.

B）Itisaprice-weightedaverageof30largeindustrialstocks.

C）Thedivisormustbeadjustedforstocksplits.

D）AandC.

E）BandC.

Rationale:

TheDowJonesIndustrialAverageisaprice-weightedindexof30largeindustrialfirmsandthedivisormustbeadjustedwhenanyofthestocksontheindexsplit.

B14.Whichofthefollowingindicesis（are）market-valueweighted?

I）TheNewYorkStockExchangeCompositeIndex

II）TheStandardandPoor's500StockIndex

III）TheDowJonesIndustrialAverage

A）Ionly

B）IandIIonly

C）IandIIIonly

D）I,II,andIII

E）IIandIIIonly

Rationale:

TheDowJonesIndustrialAverageisaprice-weightedindex.

C15.TheDowJonesIndustrialAverage（DJIA）iscomputedby:

A）addingthepricesof30large"blue-chip"stocksanddividingby30.

B）calculatingthetotalmarketvalueofthe30firmsintheindexanddividingby30.

C）addingthepricesofthe30stocksintheindexanddividingbyadivisor.

D）addingthepricesofthe500stocksintheindexanddividingbyadivisor.

E）addingthepricesofthe30stocksintheindexanddividingbythevalueofthesestocksasofsomebasedateperiod.

Rationale:

WhentheDJIAbecamea30-stockindex,responseAwastrue;however,asstocksontheindexhavesplitandbeenreplaced,thedivisorhasbeenadjusted.In2006thedivisorwas0.125.

Usethefollowingtoanswerquestions16-18:

Considerthefollowingthreestocks:

B16.Theprice-weightedindexconstructedwiththethreestocksis

A）30

B）40

C）50

D）60

E）70

Rationale:

（$40+$70+$10）/3=$40.

C17.Thevalue-weightedindexconstructedwiththethreestocksusingadivisorof100is

A）1.2

B）1200

C）490

D）4900

E）49

Rationale:

Thesumofthevalueofthethreestocksdividedby100is490:

[（$40x200）+（$70x500）+（$10x600）]/100=490.

D18.Assumeatthesepricesthevalue-weightedindexconstructedwiththethreestocksis490.WhatwouldtheindexbeifstockBissplit2for1andstockC4for1?

A）265

B）430

C）355

D）490

E）1000

Rationale:

Value-weightedindexesarenotaffectedbystocksplits.

B19.ThepricequotationsofTreasurybondsintheWallStreetJournalshowanaskpriceof104:

08andabidpriceof104:

04.Asabuyerofthebondwhatisthedollarpriceyouexpecttopay?

A）$10,480.00

B）$10,425.00

C）$10,440.00

D）$10,412.50

E）$10,404.00

Rationale:

Youpaytheaskingpriceofthedealer,1048/32,or104.25%of$10,000,or$10,425.00.

B20.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%

Rationale:

rc=0.10（1-0.20）=0.08,or8%;rm=0.08（1-0）=8%.

B21.IfaTreasurynotehasabidpriceof$975,thequotedbidpriceintheWallStreetJournalwouldbe

A）97:

50.

B）97:

16.

C）97:

80.

D）94:

24.

E）97:

75.

Rationale:

Treasuriesarequotedasapercentof$1,000andin1/32s.

B22.IncalculatingtheStandardandPoor'sstockpriceindices,theadjustmentforstocksplitoccurs:

A）byadjustingthedivisor.

B）automatically.

C）byadjustingthenumerator.

D）quarterly,onthelasttradingdayofeachquarter.

E）noneoftheabove.

Rationale:

Thecalculationofthevalue-weightedS&Pindicesincludesbothpriceandnumberofsharesofeachofthestocksintheindex.Thus,theeffectsofstocksplitsareautomaticallyincorporatedintothecalculation.

C23.WhichofthefollowingstatementsregardingtheDowJonesIndustrialAverage（DJIA）isfalse?

A）TheDJIAisnotveryrepresentativeofthemarket