1. The yield to maturity on otherwise identical option-free bonds issued by the U.S. Treasury and a large industrial corporation is 6 percent and 8 percent, respectively. If annual inflation is expected to remain steady at 2.5 percent over the life of the bond, the most likely explanation for the difference in yields is a premium due to:
2. A woman is using the following information to plan her retirement:
current age (years)
24
expected retirement age (years)
68
life expectancy (years)
93
current annual expenditures
$30000
expected inflation rate until retirement
3%
expected return on investment
8%
She assumes her consumption expenditures will increase with the rate of inflation, 3 percent, until she retires. Upon retiring she will have end-of-year expenditures equal to her consumption expenditure at age 68. The minimum amount that she must accumulate by age 68 in order to fund her retirement is closest to:
3. Rent is $700 monthly and is due on the first day of every month. If the stated annual interest is 6 percent, the present value of a full year's rent payment is closest to:
4. A company is considering entering into a joint venture that will require an investment of $30 million. The project is expected to generate cash flows of $7 million, $14 million, and $15 million in each of the next three years, respectively. Assuming a discount rate of 7%, what is the project's NPV?
A.-$5343200
B.-$3702900
C.+$1563400
A B C
B
[解析]
5. A project has the following expected cash flows:
time
cash flow
0 1 2
($125000) $100000 $200000
If the risk-free interest rate is 4 percent, expected inflation is 3 percent, the market risk premium is 8 percent and the Beta for the project is 1, the investment's net present value (NPV) is closest to:
A.$113000
B.$124000
C.$139000
A B C
B
[解析] 投资的资金机会成本=无风险利率+市场风险溢价×β值=4%+8%×1=12%
6. A company is considering entering into a joint venture that will require an investment of $15 million. The project is expected to generate cash flows of $9 million and $8 million in each of the next two years, respectively. What is the project's IRR?
A.9%
B.14%
C.15%
A B C
A
[解析] 解得IRR=9%。
7. What should an analyst recommend based on the following information for two mutually exclusive projects?
8. Terrison Inc. is considering the purchase of a new material handling system for a cost of $43 million. This System is expected to generate a positive cash flow of $5 million per year in perpetuity. What is the NPV of the proposed investment if the appropriate discount rate is 7%?
9. Terrison Inc. is considering the purchase of a new material handling system for a cost of $27 million. This system is expected to generate a positive cash flow of $3 million per year in perpetuity. What is the IRR of the proposed investment if the appropriate hurdle rate is 10%?
11. Which of the following statements least accurately describes the IRR and NPV methods?
A.The discount rate that gives an investment an NPV of zero is the investment's IRR.
B.If the IRR and NPV methods give conflicting decisions for mutually exclusive projects, the IRR decision should be used to select the project.
C.The NPV method assumes that a project's cash flows will be reinvested at the cost of capital, while the IRR method assumes they will be reinvested at the IRR.
31. What is the mean absolute deviation for ACS stock?
A.8.7%
B.16.8%
C.17.3%
A B C
B
[解析]
32. Assuming that the distribution of ACS stock returns is a population, what is the population standard deviation?
A.5.8%
B.15.7%
C.35.1%
A B C
B
[解析]
33. For a skewed distribution, what is the minimum percentage of the observations that will lie between + 4 standard deviations of the mean based on Chebyshev's inequality?
34. An analyst gathered the following information about a common stock portfolio: ●arithmetic mean return 14.3% ●geometric mean return 12.7% ●variance of returns 380 ●portfolio beta 1.35 If the risk-free rate of return is 4.25 percent, the coefficient of variation is closest to:
A.0.52
B.1.36
C.1.53
A B C
B
[解析] 相对离差(relative dispersion)是指在特定分布中,相对于某一参考点或基准的变化数量。相对离差一般用变差系数(Coefficient of Variation,CV)来加以测度,其计算公式为:
36. A distribution of returns that has a greater percentage of small deviations from the mean and a greater percentage of extremely large deviations from the mean compared to a normal distribution:
38. The probability that the Dow-Jones Average will increase tomorrow is 3/5. The probability of an increase in the Dow-Jones Average stated as odds is:
A.2/3
B.3/2
C.2/5
A B C
B
[解析] 发生的几率=
39. If events A and B are mutually exclusive, then:
40. Two events are said to be independent if the occurrence of one event:
A.means that the second event cannot occur.
B.means that the second event is certain to occur.
C.does not affect the probability of the occurrence of the other event.
A B C
C
[解析] 根据概率理论,如果一个事件的发生与否并不影响另一事件发生的概率,则称这两个事件相互独立。
41. Given the conditional probabilities in the table below and the unconditional probabilities P(Y=1)=0.4 and P(Y=2)=0.6, what is the expected value of X?
46. Given the joint probability table, the correlation between RA and RB is closest to:
A.-0.82
B.-0.34
C.1.32
A B C
A
[解析]
47. Which of the following statements best describes the relationship between correlation and covariance? The correlation between two random variables is their covariance standardized by the product of the variables':
51. At a charity ball, the names of 300 people are put into a box. Six of the names are identical. On a random draw, what is the probability that one of these six names will be drawn?