兹维博迪金融学第二版试的题目库7TB(1)
- 1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
- 2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
- 3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。
Chapter Seven
Principles of Market Valuation
This chapter contains 30 multiple choice questions, 10 short problems and 5
longer problems.
Multiple Choice
1.In regard to an asset, the ________ is defined as the process well-informed
investors must pay for it in a free and competitive market.
(a)analyst value
(b)technical value
(c)competitive value
(d)fundamental value
Answer: (d)
2.In corporate finance decision making, an extremely important rule is to
choose the investment that ________ current shareholders’ wealth.
(a)minimizes
(b)maximizes
(c)provides zero change in
(d)jeopardizes
Answer: (b)
3.In asset valuation, the method used to accomplish the estimation depends on
the ________.
(a)number of participants
(b)quality of calculating instruments
(c)richness of the information set available
(d)geographic location
Answer: (c)
4.The ________ states that in a competitive market, if two assets are
equivalent, they will tend to have the same market price.
(a)Law of Real Interest Rates
(b)Law of One Price
(c)Law of Price Equivalency
(d)Law of Futures
Answer: (b)
5.The Law of One Price is enforced by a process called ________, the purchase
and immediate sale of equivalent assets in order to earn a sure profit from
a difference in their prices.
(a)swapping
(b)maximization
(c)arbitrage
(d)speculation
Answer: (c)
6.________ refers to the totality of costs such as shipping, handling,
insuring, and broker fees.
(a)Shipping costs
(b)Transaction costs
(c)Installation costs
(d)Insurance costs
Answer: (b)
7.The Law of One price is a statement about the price of one asset ________
the price of another.
(a)absolute to
(b)relative to
(c)multiplied by
(d)independent of
Answer: (b)
8.If an entity borrows at a lower rate and lends at a higher rate, this is an
example of ________.
(a)opportunity arbitrage
(b)interest-rate arbitrage
(c)exchange arbitrage
(d)nominal arbitrage
Answer: (b)
9.If arbitrage ensures that any three currencies are freely convertible in
competitive markets, then:
(a)it is enough to know only one exchange rate to determine the third
(b)we can estimate two exchange rates based on one exchange rate only
(c)it is enough to know the exchange rates between any two in order to
determine the third
(d)it is necessary to know all three rates
Answer: (c)
10.Suppose you have $15,000 in a bank account earning an interest rate of 4%
per year. At the same time you have an unpaid balance on your credit card of $6,000 on which you are paying an interest rate of 17% per year. What
arbitrage opportunity do you face?
(a)$240 per year
(b)$600 per year
(c)$780 per year
(d)$1,020 per year
Answer: (c)
11.If the dollar price of Japanese Yen is $0.009594 per Japanese Yen and the
dollar price of Chinese Yuan is $0.1433 per Chinese Yuan, what is the
Japanese Yen price of a Chinese Yuan? (i.e., JPY/CNY)
(a)0.001375 JPY/CNY
(b)0.066950 JPY/CNY
(c)9.594 JPY/CNY
(d)14.936419 JPY/CNY