1.An analyst has been writing research reports on a firm for many years. As part of the analyst’s continuing research efforts, the analyst allowed the firm to fly him to the firm’s headquarters 500 miles away and put him up in the guest quarters the firm had for all corporate visitors. In the current year, the firm is planning a secondary share offering that coincides with the tenth anniversary of the firm going public. When the analyst arrived at the headquarters, he found a new set of high-quality golf clubs as a gift to him. On the golf clubs was the firm’s logo, and the firm was giving the clubs to all visitors this year in honor of the anniversary and the IPO. Based upon this information, Standard I (B), Independence and Objectivity, has:
A.Been broken because of the value of the golf clubs and the value of the trip to the headquarters
B.Been broken because of the value of the golf clubs
C.Not been broken because the trip is allowed and the firm is giving the clubs to all visitors
2.A distribution with mode 2.6, median 2.2, mean 2, the distribution can be described as:
A.long tail in the left and positively skewed.
B.long tail in the right and negatively skewed.
C.long tail in the left and negatively skewed.
3.Which of the following statements best illustrates the difference between a Giffen good and a Veblen good? （原版书R14-8）
A.The Giffen good alone is an inferior good.
B.The substitution effect for each is in opposite directions.
C.The Veblen good alone has a positively sloped demand curve.
4.Before adjusting accounting entries, a liability and a cash has been occurred in the balance sheet. This process is most likely to be:
A.An unearned revenue.
B.A prepaid expense.
C.An accrued expense.
5.An investment has an outlay of 100 and after-tax cash flows of 40 annually for four years. A project enhancement increases the outlay by 15 and the annual after-tax cash flows by 5. As a result, the vertical intercept of the NPV profile of the enhanced project shifts: （原版书R36-11）
A.Up and the horizontal intercept shifts left.
B.Up and the horizontal intercept shifts right.
C.Down and the horizontal intercept shifts left.
6.You have placed a sell market-on-open order—a market order that would automatically be submitted at the market's open tomorrow and would fill at the market price. Your instruction, to sell the shares at the market open, is a(n):
A.execution instruction
B.validity instruction
C.clearing instruction
7.Which of the following bond has a lower price than an otherwise similar bond without the embedded option?
A.Puttable bond.
B.Callable bond.
C.Convertible bond.
8.An investor who requires no premium to compensate for the assumption of risk is said to be which of the following?
A.Risk seeking
B.Risk averse
C.Risk neutral
9.A private equity valuation approach that uses estimated multiples of cash flows to value a portfolio company is the:
A.Asset-based approach.
B.Discount cash flow approach.
C.Market/comparable approach.
10.Liquidity risk is most associated with: (2016年CFA原版书课后题)
A.the probability of default.
B.a widening bid–ask spread.
C.a poorly functioning market.
答案往下翻
1.Solution: B.
Modest gifts and entertainment are acceptable. Should commercial transportation be unavailable, modestly arranged travel may be accepted to participate in appropriate information gathering events.
2.Solution: C.
As mean < median < mode, the distribution has long tail in the left and negatively skewed.
3.Solution: A.
Veblen goods are not inferior goods, whereas Giffen goods are. An increase in income for consumers of a Veblen good leads to an increase in the quantity purchased at each price. The opposite is true for a Giffen good.
4.Solution: A.
The process has recognized as a liability, with cash has been received, but the transaction haven’t occurred. So this should be recognized as an unearned revenue.
5.Solution: A.
The vertical intercept changes from 60 to 65 (NPV when cost of capital is 0%), and the horizontal intercept (IRR, when NPV equals zero) changes from 21.86 percent to 20.68 percent.
6.Solution: B.
Execution instructions specify how to trade;
Validity instructions specify when the order can be filled;
Clearing instructions specify how to settle the trade.
7.Solution: B.
The call provision is an option that benefits the issuer. Because of this, callable bonds sell at lower prices and higher yields relative to otherwise similar non-callable bonds. A and C are incorrect because the put provision and the conversion provision are options that benefit the investor. Thus, puttable bonds and convertible bonds sell at higher prices and lower yields relative to otherwise similar bonds that lack those provisions.
8.Solution: C.
Risk-seeking investors give away a risk premium because they enjoy taking risk. Risk-averse investors expect a risk premium to compensate for the risk. Risk-neutral investors neither give nor receive a risk premium because they have no feelings about risk.
9.Solution: C.
The market/comparable approach use market or private transaction values of similar companies to estimate multiples of EBITDA, net income, or revenue to use in estimating the portfolio company’s value.
10.Solution: B.
Liquidity risk is also called transaction cost risk. When the bid–ask spread widens, purchase and sale transactions become increasingly costly. The risk arises from the uncertainty of the spread.
金程CFA课程咨询：400-700-9596
更多题目扫码关注金程CFA微信公众号
A.Been broken because of the value of the golf clubs and the value of the trip to the headquarters
B.Been broken because of the value of the golf clubs
C.Not been broken because the trip is allowed and the firm is giving the clubs to all visitors
2.A distribution with mode 2.6, median 2.2, mean 2, the distribution can be described as:
A.long tail in the left and positively skewed.
B.long tail in the right and negatively skewed.
C.long tail in the left and negatively skewed.
3.Which of the following statements best illustrates the difference between a Giffen good and a Veblen good? （原版书R14-8）
A.The Giffen good alone is an inferior good.
B.The substitution effect for each is in opposite directions.
C.The Veblen good alone has a positively sloped demand curve.
4.Before adjusting accounting entries, a liability and a cash has been occurred in the balance sheet. This process is most likely to be:
A.An unearned revenue.
B.A prepaid expense.
C.An accrued expense.
5.An investment has an outlay of 100 and after-tax cash flows of 40 annually for four years. A project enhancement increases the outlay by 15 and the annual after-tax cash flows by 5. As a result, the vertical intercept of the NPV profile of the enhanced project shifts: （原版书R36-11）
A.Up and the horizontal intercept shifts left.
B.Up and the horizontal intercept shifts right.
C.Down and the horizontal intercept shifts left.
6.You have placed a sell market-on-open order—a market order that would automatically be submitted at the market's open tomorrow and would fill at the market price. Your instruction, to sell the shares at the market open, is a(n):
A.execution instruction
B.validity instruction
C.clearing instruction
7.Which of the following bond has a lower price than an otherwise similar bond without the embedded option?
A.Puttable bond.
B.Callable bond.
C.Convertible bond.
8.An investor who requires no premium to compensate for the assumption of risk is said to be which of the following?
A.Risk seeking
B.Risk averse
C.Risk neutral
9.A private equity valuation approach that uses estimated multiples of cash flows to value a portfolio company is the:
A.Asset-based approach.
B.Discount cash flow approach.
C.Market/comparable approach.
10.Liquidity risk is most associated with: (2016年CFA原版书课后题)
A.the probability of default.
B.a widening bid–ask spread.
C.a poorly functioning market.
答案往下翻
1.Solution: B.
Modest gifts and entertainment are acceptable. Should commercial transportation be unavailable, modestly arranged travel may be accepted to participate in appropriate information gathering events.
2.Solution: C.
As mean < median < mode, the distribution has long tail in the left and negatively skewed.
3.Solution: A.
Veblen goods are not inferior goods, whereas Giffen goods are. An increase in income for consumers of a Veblen good leads to an increase in the quantity purchased at each price. The opposite is true for a Giffen good.
4.Solution: A.
The process has recognized as a liability, with cash has been received, but the transaction haven’t occurred. So this should be recognized as an unearned revenue.
5.Solution: A.
The vertical intercept changes from 60 to 65 (NPV when cost of capital is 0%), and the horizontal intercept (IRR, when NPV equals zero) changes from 21.86 percent to 20.68 percent.
6.Solution: B.
Execution instructions specify how to trade;
Validity instructions specify when the order can be filled;
Clearing instructions specify how to settle the trade.
7.Solution: B.
The call provision is an option that benefits the issuer. Because of this, callable bonds sell at lower prices and higher yields relative to otherwise similar non-callable bonds. A and C are incorrect because the put provision and the conversion provision are options that benefit the investor. Thus, puttable bonds and convertible bonds sell at higher prices and lower yields relative to otherwise similar bonds that lack those provisions.
8.Solution: C.
Risk-seeking investors give away a risk premium because they enjoy taking risk. Risk-averse investors expect a risk premium to compensate for the risk. Risk-neutral investors neither give nor receive a risk premium because they have no feelings about risk.
9.Solution: C.
The market/comparable approach use market or private transaction values of similar companies to estimate multiples of EBITDA, net income, or revenue to use in estimating the portfolio company’s value.
10.Solution: B.
Liquidity risk is also called transaction cost risk. When the bid–ask spread widens, purchase and sale transactions become increasingly costly. The risk arises from the uncertainty of the spread.
金程CFA课程咨询：400-700-9596
更多题目扫码关注金程CFA微信公众号