权益证券投资：证券市场及答案解析.doc

1、权益证券投资：证券市场及答案解析(总分：116.00，做题时间：90 分钟)一、B单项选择题/B(总题数：116，分数：116.00)1.Corp. stock at a price of $60 per share. Kirk wishes to buy on margin. Assuming the margin requirement is 40 percent, how much money does Kirk have to pay up front to make the purchase?（分数：1.00）A.A. $36000. B.B. $24000. C.C. $0.2.A

2、ccording to the characteristics of the capital market, which of the following is most directly a function of primary capital markets and which is most directly a function of secondary capital markets? Primary capital markets Secondary Capital markets A. Source of liquidity Security underwriting B. S

3、ource of new capital Source of price information C. Source of price information Source of new capital（分数：1.00）A.A. B.B. C.C. 3.When using margin to invest in equities, which of the following defines initial margin and what level will the margin be brought back to in the event of a margin call? Initi

4、al margin Margin call action A. amount of borrowed funds in the transactions a deposit must be made to bring the margin back to the initial margin B. amount of borrowed funds in the transactions a deposit must be made to bring the margin back to the maintenance margin C. minimum amount of equity req

5、uired of the investor a deposit must be made to bring the margin back to the maintenance margin（分数：1.00）A.A. B.B. C.C. 4.The Dow Jones Industrial Average accounts for stock splits by: A. multiplying the index by the stock split ratio. B. reducing the market capitalization of the stock experiencing t

6、he split. C. increasing the weighting of the stock experiencing the split.（分数：1.00）A.B.C.5.The characteristic of a regional exchange is such that: A. it competes with and supplements the national exchanges by providing primary markets for the stocks of smaller companies. B. it competes with and supp

7、lements the national exchanges by providing secondary markets for the stocks of smaller companies . C. it competes with and supplements the national exchanges by providing primary markets for the stocks of larger companies.（分数：1.00）A.B.C.6.Which of the following statement about weighting schemes use

8、d in constructing stock market indexes is FALSE? A. The Nikkei Dow is a price-weighted index. B. The Standards and Poors indexes are market value-weighted indexes. C. A market-weighted index automatically adjusts for stock splits.（分数：1.00）A.B.C.7.Which of the following actions is most likely to give

9、 an analyst superior results7 A. The ability to react very quickly to public announcements. B. Having superior abilities to identify patterns of returns based on historical data of economic factors and being able to determine the relationship between a stock return and certain economic factors based

10、 on historical data and then use that relationship to make reliable forecasts for future price movements. C. A strong ability to interpret and estimate the future impact of publicly available information.（分数：1.00）A.B.C.8.Using the following assumptions, calculate the rate of return on a margin trans

11、action for an investor who purchases the stock and the stock price at which the investor who shorts the stock will receive a margin call. Market Price Per Share: $25 Number of Shares Purchased: 1000 Holding Period: 1 year Ending Share Price: $22 Initial Margin Requirement: 50% Maintenance margin: 25

12、% Transaction and borrowing costs: $0 The company pays no dividends What of the following choices is closest to the correct answer? The margin transaction return and margin call are: Margin Transaction Return Margin Call A. -24.00% $16.67 B. -12.00% $16.67 C. -24.00% $30.00（分数：1.00）A.A. B.B. C.C. 9.

13、Which of the following statements describes the overall conclusions regarding the weak-form of the efficient market hypothesis (EMH)? A. All evidence indicates that simple trading rules generate positive abnormal returns. B. Stock exchange specialists using monopolistic information contained in the

14、limit order book derive above average returns. C. Most evidence indicates that after incorporating trading costs, simple trading rules do not generate positive abnormal profits.（分数：1.00）A.B.C.10.What is the price-weighted index of the following three stocks?（分数：1.00）A.As of December 31, 2001B.Compan

15、yC.Stock PriceD.Shares OutstandingE.AF.$50G.10000H.BI.$35J.20000K.CL.$110M.3000011.The level of diversification benefits available from investing internationally is determined by the:（分数：1.00）A.A. relative returns between markets. B.B. correlations between market returns. C.C. standard deviations of

16、 the returns.12.Assume 100 shares purchased at $75/share with an initial margin of 50 percent. The initial cost to the investor is:（分数：1.00）A.A. $0. B.B. $3750. C.C. $7500.13.Which of the following statements is INCORRECT? A. The strong-form EMH assumes cost free availability of all information, bot

17、h public and private. B. The weak-form EMH suggests that fundamental analysis will not provide excess returns while the semi-strong form suggests that technical analysis cannot achieve excess returns. C. The semi-strong form EMH addresses market and non-market public information.（分数：1.00）A.B.C.14.Wh

18、ich of the following statements about trading shares of stock or market efficiency is FALSE? A. Maintenance margin is the required percentage of an investors equity compared to the total value of the stock after the investor trades on margin. B. The up tick rule requires that the last trade in the s

19、ecurity be at a price higher than the previous trade. C. External efficiency means prices adjust rapidly to new information.（分数：1.00）A.B.C.15.Capital market efficiency is desirable, but there are limitations in achieving full market efficiency. Which of the following is least likely to be a limitati

20、on in achieving full capital market efficiency?（分数：1.00）A.A. Cost of trading. B.B. Survivorship bias. C.C. Limits of arbitrage.16.Which of the following does NOT imply an informationally efficient market? A. Many profit-maximizing participants, each acting independently of the others, analyze and va

21、lue securities. B. The timing of one news announcement is independent of other news announcements. C. A risk-free asset exists, and investors can borrow and lend an unlimited amount at the risk-free rate.（分数：1.00）A.B.C.17.Given that markets are efficient, which of the following is least likely to ca

22、use an actively managed mutual fund to underperform an index fund?（分数：1.00）A.A. Taxes. B.B. Inferior stock selection. C.C. Management expenses.18.Index funds are: A. on average underpriced by 15%, but this underpricing varies over time, which supports the EMH. B. on average overderpriced by 15%, but

23、 this overpricing varies over time, which supports the EMH. C. security portfolios designed to duplicate the composition and therefore the performance of a selected market index series.（分数：1.00）A.B.C.19.Which of the following tests are NOT used to examine the weak form of the efficient market hypoth

24、esis? Those that examine: A. whether security returns are independent over time. B. a securitys return relative to the market return. C. whether excess returns can be obtained from using mechanical trading rules.（分数：1.00）A.B.C.20.An index was recently begun with the following two stocks: Company A -

25、50 shares valued at $ 2 each. Company B - 10 shares valued at $10 each. Given that the value-weighted index was originally set at 100 and Company As stock is currently selling for $ 4 per share while Company Bs stock is still at $10 per share, what is the current value of the price-weighted index an

26、d the value-weighted index? Price -weighted Value -weighted A. 7 300 B. 8 150 C. 7 150（分数：1.00）A.A. B.B. C.C. 21.The semi-strong form of the efficient market hypothesis (EMH) asserts that stock prices: A. fully reflect all historical price information. B. fully reflect all relevant information inclu

27、ding insider information. C. fully reflect all publicly available information.（分数：1.00）A.B.C.22.Which of the following statements regarding regulations governing the short-sale process is FALSE? A. The short seller must pay a margin equivalent to the prevailing margin requirement when the transactio

28、n is made. B. If dividends are paid on the stock during the short-sale transaction, the short seller must pay dividends to the investor that loaned the stock. C. The short-sale process must be completed within a 90-day period.（分数：1.00）A.B.C.23.Which of the following statements about securities marke

29、ts is least accurate? A. Characteristics of a well-functioning securities market include: many buyers and sellers willing to trade at below market price, low bid-ask spreads, timely information on price and volume of past transactions, and accurate information on supply and demand. B. When Conglomer

30、ate, InC. trades directly with MultiNational, Ltd. , it is using the fourth market. C. A limit buy order and a stop buy order are both placed below the current market price.（分数：1.00）A.B.C.24.Byron Campbell purchased 300 shares of Crescent, Inc. , stock at a price of $80 per share. The purchase was m

31、ade on margin with an initial margin requirement of 50 percent. Assuming the maintenance margin is 25 percent, the stock price of Crescent, Inc. has to fall below what level for Campbell to receive a margin call?（分数：1.00）A.A. $40.00. B.B. $30.00. C.C. $53.33.25.According to EMH knowledge, is the inf

32、ormation set associated with the weak-form of the EMH best described as including all information associated with the: semistrong-form of the EMH strong-form of the EMH A. No No B. No Yes C. Yes No（分数：1.00）A.A. B.B. C.C. 26.Banz and Reinganum found that small firms consistently outperformed large fi

33、nns. This anomaly is referred to as the:（分数：1.00）A.A. growth effect. B.B. P/E effect. C.C. size effect.27.Which of the following regarding bond market indexes is FALSE? A. There are more bond issues than stocks. B. The price volatility of bonds is constantly changing due to the influence of maturity

34、 and market yield on bond durations. C. The bond universe is more stable than the stock universe.（分数：1.00）A.B.C.28.Tamber Benz, CFA, recently joined Bay Area Investment Group as a personal financial planner. Today, she has a meeting with a client interested in equity index funds, with a particular i

35、nterest in learning about the source and direction of biases. In preparation for this meeting, she makes some quick notes (relying on her memory). These notes are listed below. She then finds her well-worn CFA study notes and checks her memory. After reviewing her notes, which of the following choic

36、es does she determine is least accurate? A. An index such as the Valueline Composite Average is constructed by purchasing an equal number of shares of each stock in the index, and will have a downward bias when geometric averaging is used to compute the return. B. One problem with an index such as t

37、he S government; municipal. B. Investment grade; high yield; global. C. Manufacturing; service; technological.（分数：1.00）A.B.C.60.Which of the following statements about efficient markets and indexes is FALSE? A. An unweighted index assumes that investors make and maintain an equal dollar investment i

38、n each stock in the index. B. External efficiency means prices adjust rapidly to new information. C. Efficient markets tests have found that stocks with high price-to-earnings ratios (P/E) tend to outperform stocks with low P/E ratios.（分数：1.00）A.B.C.61.With regard to stock market indexes, it is leas

39、t likely that: A. the use of a geometric mean produces a downward bias on an equal-weighted index compared to the use of an arithmetic mean. B. the use of price weighting versus market value weighting produces a downward bias on the index. C. a value-weighted index must be adjusted for stock splits

40、but not for dividends.（分数：1.00）A.B.C.62.Which of the following statements about securities exchanges is FALSE? A. A stock with a relatively large market volume is most likely to trade in the continuous market. B. A call market is an open-outcry market where bids are called out in a trading pit. C. T

41、he price in continuous markets is set by either the auction process or by dealer bid-ask quotes.（分数：1.00）A.B.C.63.Use the data below to determine which of the statements is TRUE? As of December 31Company Stock Price Shares OutstandingA $25 20000B $50 20000C $100 10000A. A 100% increase in the stock

42、price of Company A will have a smaller impact on the price-weighted index than a 100% increase in the stock price of Company C. B. For a given percentage change in the stock price, Company A will have a greater impact on the market-value weighted index than Companies B or C. C. For a given percentag

43、e change in the stock price, Company B will have less of an impact on the market-value weighted index as Company C.（分数：1.00）A.B.C.64.The direct exchange of securities between investors without using an intermediary or the services of a broker occurs in which of the following markets?（分数：1.00）A.A. Th

44、e third market. B.B. The fourth market. C.C. The over-the-counter market.65.Which of the following conclusions about the semi-strong form of the efficient market hypothesis (EMH) and the strong-form EMH is FALSE? A. If the strong form of market efficiency were true, there would be no need for inside

45、r trading laws. B. Neglected firms (i. e. those firms with a small number of analysts following them) tend to underperform the market. C. Professional money managers, as a group, have not been able to produce returns that consistently exceed the market.（分数：1.00）A.B.C.66.Which of the following statem

46、ents about the assumptions of efficient capital markets and the conclusion of the efficient market hypothesis is FALSE? A. If markets are efficient, investors should not trade often. B. In testing for semistrong-form market efficiency, researchers typically adjust for the stocks risk. C. Tests of ma

47、rket efficiency have found no strategy that produces excess returns above the market after accounting for transaction costs.（分数：1.00）A.B.C.67.The reasons why a mispricing can persist all relate to the idea that: A. taxes and other transactions costs make exploiting the anomaly prohibitive. B. the si

48、ze of the available profit is too small. C. an anomaly cannot be quickly exploited by traders or arbitrageurs.（分数：1.00）A.B.C.68.Which of the following statements does NOT describe the role of a portfolio manager in perfectly efficient markets? Portfolio managers should: A. construct diversified port

49、folios that include international securities to eliminate unsystematic risk. B. quantify clients risk tolerance, communicate portfolio policies and strategies, and maintain a strict buy and hold policy avoiding any changes in the portfolio to minimize transaction costs. C. help clients minimize taxes and reduce trading turnover.（分数：1.00）A.B.C.69.Assume you purchased 1500 shares of a stock on margin at $34 per share. The initial margin rate is 40%, and the minimum maintenance margin is 25%. Assume no dividends, commissions, or margin interest. Belo