投资学选择题及答案英文版

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投资学第7版Test Bank答案完整可编辑

Multiple Choice Questions1. The term structure of interest rates is:A) The relationship between the rates of interest on all securities.B) The relationship between the interest rate on a security and its time to maturity.C) The relationship between the yield on a bond and its default rate.D) All of the above.E) None of the above.Answer: B Difficulty: EasyRationale: The term structure of interest rates is the relationship between two variables, years and yield to maturity (holding all else constant).2. The yield curve shows at any point in time:A) The relationship between the yield on a bond and the duration of the bond.B) The relationship between the coupon rate on a bond and time to maturity of thebond.C) The relationship between yield on a bond and the time to maturity on the bond.D) All of the above.E) None of the above.Answer: C Difficulty: Easy3. An inverted yield curve implies that:A) Long-term interest rates are lower than short-term interest rates.B) Long-term interest rates are higher than short-term interest rates.C) Long-term interest rates are the same as short-term interest rates.D) Intermediate term interest rates are higher than either short- or long-term interestrates.E) none of the above.Answer: A Difficulty: EasyRationale: The inverted, or downward sloping, yield curve is one in which short-term rates are higher than long-term rates. The inverted yield curve has been observedfrequently, although not as frequently as the upward sloping, or normal, yield curve.4. An upward sloping yield curve is a(n) _______ yield curve.A) normal.B) humped.C) inverted.D) flat.E) none of the above.Answer: A Difficulty: EasyRationale: The upward sloping yield curve is referred to as the normal yield curve, probably because, historically, the upward sloping yield curve is the shape that has been observed most frequently.5. According to the expectations hypothesis, a normal yield curve implies thatA) interest rates are expected to remain stable in the future.B) interest rates are expected to decline in the future.C) interest rates are expected to increase in the future.D) interest rates are expected to decline first, then increase.E) interest rates are expected to increase first, then decrease.Answer: C Difficulty: EasyRationale: An upward sloping yield curve is based on the expectation that short-term interest rates will increase.6. Which of the following is not proposed as an explanation for the term structure ofinterest rates?A) The expectations theory.B) The liquidity preference theory.C) The market segmentation theory.D) Modern portfolio theory.E) A, B, and C.Answer: D Difficulty: EasyRationale: A, B, and C are all theories that have been proposed to explain the term structure.7. The expectations theory of the term structure of interest rates states thatA) forward rates are determined by investors' expectations of future interest rates.B) forward rates exceed the expected future interest rates.C) yields on long- and short-maturity bonds are determined by the supply and demandfor the securities.D) all of the above.E) none of the above.Answer: A Difficulty: EasyRationale: The forward rate equals the market consensus expectation of future short interest rates.8. Which of the following theories state that the shape of the yield curve is essentiallydetermined by the supply and demands for long-and short-maturity bonds?A) Liquidity preference theory.B) Expectations theory.C) Market segmentation theory.D) All of the above.E) None of the above.Answer: C Difficulty: EasyRationale: Market segmentation theory states that the markets for different maturities are separate markets, and that interest rates at the different maturities are determined by the intersection of the respective supply and demand curves.9. According to the "liquidity preference" theory of the term structure of interest rates, theyield curve usually should be:A) inverted.B) normal.C) upward slopingD) A and B.E) B and C.Answer: E Difficulty: EasyRationale: According to the liquidity preference theory, investors would prefer to be liquid rather than illiquid. In order to accept a more illiquid investment, investors require a liquidity premium and the normal, or upward sloping, yield curve results.Use the following to answer questions 10-13:Suppose that all investors expect that interest rates for the 4 years will be as follows:10. What is the price of 3-year zero coupon bond with a par value of $1,000?A) $863.83B) $816.58C) $772.18D) $765.55E) none of the aboveAnswer: B Difficulty: ModerateRationale: $1,000 / (1.05)(1.07)(1.09) = $816.5811. If you have just purchased a 4-year zero coupon bond, what would be the expected rateof return on your investment in the first year if the implied forward rates stay the same?(Par value of the bond = $1,000)A) 5%B) 7%C) 9%D) 10%E) none of the aboveAnswer: A Difficulty: ModerateRationale: The forward interest rate given for the first year of the investment is given as 5% (see table above).12. What is the price of a 2-year maturity bond with a 10% coupon rate paid annually? (Parvalue = $1,000)A) $1,092B) $1,054C) $1,000D) $1,073E) none of the aboveAnswer: D Difficulty: ModerateRationale: [(1.05)(1.07)]1/2 - 1 = 6%; FV = 1000, n = 2, PMT = 100, i = 6, PV =$1,073.3413. What is the yield to maturity of a 3-year zero coupon bond?A) 7.00%B) 9.00%C) 6.99%D) 7.49%E) none of the aboveAnswer: C Difficulty: ModerateRationale: [(1.05)(1.07)(1.09)]1/3 - 1 = 6.99.Use the following to answer questions 14-16:The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000.14. What is, according to the expectations theory, the expected forward rate in the thirdyear?A) 7.00%B) 7.33%C) 9.00%D) 11.19%E) none of the aboveAnswer: C Difficulty: ModerateRationale: 881.68 / 808.88 - 1 = 9%15. What is the yield to maturity on a 3-year zero coupon bond?A) 6.37%B) 9.00%C) 7.33%D) 10.00%E) none of the aboveAnswer: C Difficulty: ModerateRationale: (1000 / 808.81)1/3 -1 = 7.33%16. What is the price of a 4-year maturity bond with a 12% coupon rate paid annually? (Parvalue = $1,000)A) $742.09B) $1,222.09C) $1,000.00D) $1,141.92E) none of the aboveAnswer: D Difficulty: DifficultRationale: (1000 / 742.09)1/4 -1 = 7.74%; FV = 1000, PMT = 120, n = 4, i = 7.74, PV = $1,141.9217. The market segmentation theory of the term structure of interest ratesA) theoretically can explain all shapes of yield curves.B) definitely holds in the "real world".C) assumes that markets for different maturities are separate markets.D) A and B.E) A and C.Answer: E Difficulty: EasyRationale: Although this theory is quite tidy theoretically, both investors and borrows will depart from their "preferred maturity habitats" if yields on alternative maturities are attractive enough.18. An upward sloping yield curveA) may be an indication that interest rates are expected to increase.B) may incorporate a liquidity premium.C) may reflect the confounding of the liquidity premium with interest rateexpectations.D) all of the above.E) none of the above.Answer: D Difficulty: EasyRationale: One of the problems of the most commonly used explanation of termstructure, the expectations hypothesis, is that it is difficult to separate out the liquidity premium from interest rate expectations.19. The "break-even" interest rate for year n that equates the return on an n-periodzero-coupon bond to that of an n-1-period zero-coupon bond rolled over into a one-year bond in year n is defined asA) the forward rate.B) the short rate.C) the yield to maturity.D) the discount rate.E) None of the above.Answer: A Difficulty: EasyRationale: The forward rate for year n, fn, is the "break-even" interest rate for year n that equates the return on an n-period zero- coupon bond to that of an n-1-periodzero-coupon bond rolled over into a one-year bond in year n.20. When computing yield to maturity, the implicit reinvestment assumption is that theinterest payments are reinvested at the:A) Coupon rate.B) Current yield.C) Yield to maturity at the time of the investment.D) Prevailing yield to maturity at the time interest payments are received.E) The average yield to maturity throughout the investment period.Answer: C Difficulty: ModerateRationale: In order to earn the yield to maturity quoted at the time of the investment, coupons must be reinvested at that rate.21. Which one of the following statements is true?A) The expectations hypothesis indicates a flat yield curve if anticipated futureshort-term rates exceed the current short-term rate.B) The basic conclusion of the expectations hypothesis is that the long-term rate isequal to the anticipated long-term rate.C) The liquidity preference hypothesis indicates that, all other things being equal,longer maturities will have lower yields.D) The segmentation hypothesis contends that borrows and lenders are constrained toparticular segments of the yield curve.E) None of the above.Answer: D Difficulty: ModerateRationale: A flat yield curve indicates expectations of existing rates. Expectations hypothesis states that the forward rate equals the market consensus of expectations of future short interest rates. The reverse of C is true.22. The concepts of spot and forward rates are most closely associated with which one ofthe following explanations of the term structure of interest rates.A) Segmented Market theoryB) Expectations HypothesisC) Preferred Habitat HypothesisD) Liquidity Premium theoryE) None of the aboveAnswer: B Difficulty: ModerateRationale: Only the expectations hypothesis is based on spot and forward rates. A andC assume separate markets for different maturities; liquidity premium assumes higheryields for longer maturities.Use the following to answer question 23:23. Given the bond described above, if interest were paid semi-annually (rather thanannually), and the bond continued to be priced at $850, the resulting effective annual yield to maturity would be:A) Less than 12%B) More than 12%C) 12%D) Cannot be determinedE) None of the aboveAnswer: B Difficulty: ModerateRationale: FV = 1000, PV = -850, PMT = 50, n = 40, i = 5.9964 (semi-annual);(1.059964)2 - 1 = 12.35%.24. Interest rates might declineA) because real interest rates are expected to decline.B) because the inflation rate is expected to decline.C) because nominal interest rates are expected to increase.D) A and B.E) B and C.Answer: D Difficulty: EasyRationale: The nominal rate is comprised of the real interest rate plus the expectedinflation rate.25. Forward rates ____________ future short rates because ____________.A) are equal to; they are both extracted from yields to maturity.B) are equal to; they are perfect forecasts.C) differ from; they are imperfect forecasts.D) differ from; forward rates are estimated from dealer quotes while future short ratesare extracted from yields to maturity.E) are equal to; although they are estimated from different sources they both are usedby traders to make purchase decisions.Answer: C Difficulty: EasyRationale: Forward rates are the estimates of future short rates extracted from yields to maturity but they are not perfect forecasts because the future cannot be predicted with certainty; therefore they will usually differ.26. The pure yield curve can be estimatedA) by using zero-coupon bonds.B) by using coupon bonds if each coupon is treated as a separate "zero."C) by using corporate bonds with different risk ratings.D) by estimating liquidity premiums for different maturities.E) A and B.Answer: E Difficulty: ModerateRationale: The pure yield curve is calculated using zero coupon bonds, but coupon bonds may be used if each coupon is treated as a separate "zero."27. The on the run yield curve isA) a plot of yield as a function of maturity for zero-coupon bonds.B) a plot of yield as a function of maturity for recently issued coupon bonds trading ator near par.C) a plot of yield as a function of maturity for corporate bonds with different riskratings.D) a plot of liquidity premiums for different maturities.E) A and B.Answer: B Difficulty: Moderate28. The market segmentation and preferred habitat theories of term structureA) are identical.B) vary in that market segmentation is rarely accepted today.C) vary in that market segmentation maintains that borrowers and lenders will notdepart from their preferred maturities and preferred habitat maintains that marketparticipants will depart from preferred maturities if yields on other maturities areattractive enough.D) A and B.E) B and C.Answer: E Difficulty: ModerateRationale: Borrowers and lenders will depart from their preferred maturity habitats if yields are attractive enough; thus, the market segmentation hypothesis is no longerreadily accepted.29. The yield curveA) is a graphical depiction of term structure of interest rates.B) is usually depicted for U. S. Treasuries in order to hold risk constant acrossmaturities and yields.C) is usually depicted for corporate bonds of different ratings.D) A and B.E) A and C.Answer: D Difficulty: EasyRationale: The yield curve (yields vs. maturities, all else equal) is depicted for U. S.Treasuries more frequently than for corporate bonds, as the risk is constant acrossmaturities for Treasuries.Use the following to answer questions 30-32:30. What should the purchase price of a 2-year zero coupon bond be if it is purchased at thebeginning of year 2 and has face value of $1,000?A) $877.54B) $888.33C) $883.32D) $893.36E) $871.80Answer: A Difficulty: DifficultRationale: $1,000 / [(1.064)(1.071)] = $877.5431. What would the yield to maturity be on a four-year zero coupon bond purchased today?A) 5.80%B) 7.30%C) 6.65%D) 7.25%E) none of the above.Answer: C Difficulty: ModerateRationale: [(1.058) (1.064) (1.071) (1.073)]1/4 - 1 = 6.65%32. Calculate the price at the beginning of year 1 of a 10% annual coupon bond with facevalue $1,000 and 5 years to maturity.A) $1,105B) $1,132C) $1,179D) $1,150E) $1,119Answer: B Difficulty: DifficultRationale: i = [(1.058) (1.064) (1.071) (1.073) (1.074)]1/5 - 1 = 6.8%; FV = 1000, PMT = 100, n = 5, i = 6.8, PV = $1,131.9133. Given the yield on a 3 year zero-coupon bond is 7.2% and forward rates of 6.1% in year1 and 6.9% in year 2, what must be the forward rate in year 3?A) 8.4%B) 8.6%C) 8.1%D) 8.9%E) none of the above.Answer: B Difficulty: ModerateRationale: f3 = (1.072)3 / [(1.061) (1.069)] - 1 = 8.6%34. An inverted yield curve is oneA) with a hump in the middle.B) constructed by using convertible bonds.C) that is relatively flat.D) that plots the inverse relationship between bond prices and bond yields.E) that slopes downward.Answer: E Difficulty: EasyRationale: An inverted yield curve occurs when short-term rates are higher thanlong-term rates.35. Investors can use publicly available financial date to determine which of the following?I)the shape of the yield curveII)future short-term ratesIII)the direction the Dow indexes are headingIV)the actions to be taken by the Federal ReserveA) I and IIB) I and IIIC) I, II, and IIID) I, III, and IVE) I, II, III, and IVAnswer: A Difficulty: ModerateRationale: Only the shape of the yield curve and future inferred rates can be determined.The movement of the Dow Indexes and Federal Reserve policy are influenced by term structure but are determined by many other variables also.36. Which of the following combinations will result in a sharply increasing yield curve?A) increasing expected short rates and increasing liquidity premiumsB) decreasing expected short rates and increasing liquidity premiumsC) increasing expected short rates and decreasing liquidity premiumsD) increasing expected short rates and constant liquidity premiumsE) constant expected short rates and increasing liquidity premiumsAnswer: A Difficulty: ModerateRationale: Both of the forces will act to increase the slope of the yield curve.37. The yield curve is a component ofA) the Dow Jones Industrial Average.B) the consumer price index.C) the index of leading economic indicators.D) the producer price index.E) the inflation index.Answer: C Difficulty: EasyRationale: Since the yield curve is often used to forecast the business cycle, it is used as one of the leading economic indicators.38. The most recently issued Treasury securities are calledA) on the run.B) off the run.C) on the market.D) off the market.E) none of the above.Answer: A Difficulty: EasyUse the following to answer questions 39-42:Suppose that all investors expect that interest rates for the 4 years will be as follows:39. What is the price of 3-year zero coupon bond with a par value of $1,000?A) $889.08B) $816.58C) $772.18D) $765.55E) none of the aboveAnswer: A Difficulty: ModerateRationale: $1,000 / (1.03)(1.04)(1.05) = $889.0840. If you have just purchased a 4-year zero coupon bond, what would be the expected rateof return on your investment in the first year if the implied forward rates stay the same?(Par value of the bond = $1,000)A) 5%B) 3%C) 9%D) 10%E) none of the aboveAnswer: B Difficulty: ModerateRationale: The forward interest rate given for the first year of the investment is given as 3% (see table above).41. What is the price of a 2-year maturity bond with a 5% coupon rate paid annually? (Parvalue = $1,000)A) $1,092.97B) $1,054.24C) $1,028.51D) $1,073.34E) none of the aboveAnswer: C Difficulty: ModerateRationale: [(1.03)(1.04)]1/2 - 1 = 3.5%; FV = 1000, n = 2, PMT = 50, i = 3.5, PV =$1,028.5142. What is the yield to maturity of a 3-year zero coupon bond?A) 7.00%B) 9.00%C) 6.99%D) 4%E) none of the aboveAnswer: D Difficulty: ModerateRationale: [(1.03)(1.04)(1.05)]1/3 - 1 = 4%.Use the following to answer questions 43-46:The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000.43. What is, according to the expectations theory, the expected forward rate in the thirdyear?A) 7.23B) 9.37%C) 9.00%D) 10.9%E) none of the aboveAnswer: B Difficulty: ModerateRationale: 862.57 / 788.66 - 1 = 9.37%44. What is the yield to maturity on a 3-year zero coupon bond?A) 6.37%B) 9.00%C) 7.33%D) 8.24%E) none of the aboveAnswer: D Difficulty: ModerateRationale: (1000 / 788.66)1/3 -1 = 8.24%45. What is the price of a 4-year maturity bond with a 10% coupon rate paid annually? (Parvalue = $1,000)A) $742.09B) $1,222.09C) $1,035.66D) $1,141.84E) none of the aboveAnswer: C Difficulty: DifficultRationale: (1000 / 711.00)1/4 -1 = 8.9%; FV = 1000, PMT = 100, n = 4, i = 8.9, PV =$1,035.6646. You have purchased a 4-year maturity bond with a 9% coupon rate paid annually. Thebond has a par value of $1,000. What would the price of the bond be one year from now if the implied forward rates stay the same?A) $995.63B) $1,108.88C) $1,000.00D) $1,042.78E) none of the aboveAnswer: A Difficulty: DifficultRationale: (925.16 / 711.00)]1/3 - 1.0 = 9.17%; FV = 1000, PMT = 90, n = 3, i = 9.17, PV = $995.63Use the following to answer question 47:47. Given the bond described above, if interest were paid semi-annually (rather thanannually), and the bond continued to be priced at $917.99, the resulting effective annual yield to maturity would be:A) Less than 10%B) More than 10%C) 10%D) Cannot be determinedE) None of the aboveAnswer: B Difficulty: ModerateRationale: FV = 1000, PV = -917.99, PMT = 45, n = 36, i = 4.995325 (semi-annual);(1.4995325)2 - 1 = 10.24%.Use the following to answer questions 48-50:48. What should the purchase price of a 2-year zero coupon bond be if it is purchased at thebeginning of year 2 and has face value of $1,000?A) $877.54B) $888.33C) $883.32D) $894.21E) $871.80Answer: D Difficulty: DifficultRationale: $1,000 / [(1.055)(1.06)] = $894.2149. What would the yield to maturity be on a four-year zero coupon bond purchased today?A) 5.75%B) 6.30%C) 5.65%D) 5.25%E) none of the above.Answer: A Difficulty: ModerateRationale: [(1.05) (1.055) (1.06) (1.065)]1/4 - 1 = 5.75%50. Calculate the price at the beginning of year 1 of an 8% annual coupon bond with facevalue $1,000 and 5 years to maturity.A) $1,105.47B) $1,131.91C) $1,084.25D) $1,150.01E) $719.75Answer: C Difficulty: DifficultRationale: i = [(1.05) (1.055) (1.06) (1.065) (1.07)]1/5 - 1 = 6%; FV = 1000, PMT = 80, n = 5, i = 6, PV = $1084.2551. Given the yield on a 3 year zero-coupon bond is 7% and forward rates of 6% in year 1and 6.5% in year 2, what must be the forward rate in year 3?A) 7.2%B) 8.6%C) 8.5%D) 6.9%E) none of the above.Answer: C Difficulty: ModerateRationale: f3 = (1.07)3 / [(1.06) (1.065)] - 1 = 8.5%Use the following to answer questions 52-61:52. What should the purchase price of a 1-year zero coupon bond be if it is purchased todayand has face value of $1,000?A) $966.37B) $912.87C) $950.21D) $956.02E) $945.51Answer: D Difficulty: DifficultRationale: $1,000 / (1.046) = $956.0253. What should the purchase price of a 2-year zero coupon bond be if it is purchased todayand has face value of $1,000?A) $966.87B) $911.37C) $950.21D) $956.02E) $945.51Answer: B Difficulty: DifficultRationale: $1,000 / [(1.046)(1.049)] = $911.3754. What should the purchase price of a 3-year zero coupon bond be if it is purchased todayand has face value of $1,000?A) $887.42B) $871.12C) $879.54D) $856.02E) $866.32Answer: E Difficulty: DifficultRationale: $1,000 / [(1.046)(1.049)(1.052)] = $866.3255. What should the purchase price of a 4-year zero coupon bond be if it is purchased todayand has face value of $1,000?A) $887.42B) $821.15C) $879.54D) $856.02E) $866.32Answer: B Difficulty: DifficultRationale: $1,000 / [(1.046)(1.049)(1.052)(1.055)] = $821.1556. What should the purchase price of a 5-year zero coupon bond be if it is purchased todayand has face value of $1,000?A) $776.14B) $721.15C) $779.54D) $756.02E) $766.32Answer: A Difficulty: DifficultRationale: $1,000 / [(1.046)(1.049)(1.052)(1.055)(1.058)] = $776.1457. What is the yield to maturity of a 1-year bond?A) 4.6%B) 4.9%C) 5.2%D) 5.5%E) 5.8%Answer: A Difficulty: ModerateRationale: 4.6% (given in table)58. What is the yield to maturity of a 5-year bond?A) 4.6%B) 4.9%C) 5.2%D) 5.5%E) 5.8%Answer: C Difficulty: ModerateRationale: [(1.046)(1.049)(1.052)(1.055)(1.058)]1/5 -1 = 5.2%59. What is the yield to maturity of a 4-year bond?A) 4.69%B) 4.95%C) 5.02%D) 5.05%E) 5.08%Answer: C Difficulty: ModerateRationale: [(1.046)(1.049)(1.052)(1.055)]1/4 -1 = 5.05%60. What is the yield to maturity of a 3-year bond?A) 4.6%B) 4.9%C) 5.2%D) 5.5%E) 5.8%Answer: B Difficulty: ModerateRationale: [(1.046)(1.049)(1.052)]1/3 -1 = 4.9%61. What is the yield to maturity of a 2-year bond?A) 4.6%B) 4.9%C) 5.2%D) 4.7%E) 5.8%Answer: D Difficulty: ModerateRationale: [(1.046)(1.049)]1/2 -1 = 4.7%Essay Questions62. Discuss the three theories of the term structure of interest rates. Include in yourdiscussion the differences in the theories, and the advantages/disadvantages of each.Difficulty: ModerateAnswer:The expectations hypothesis is the most commonly accepted theory of term structure.The theory states that the forward rate equals the market consensus expectation of future short-term rates. Thus, yield to maturity is determined solely by current and expected future one-period interest rates. An upward sloping, or normal, yield curve wouldindicate that investors anticipate an increase in interest rates. An inverted, or downward sloping, yield curve would indicate an expectation of decreased interest rates. Ahorizontal yield curve would indicate an expectation of no interest rate changes.The liquidity preference theory of term structure maintains that short-term investorsdominate the market; thus, in general, the forward rate exceeds the expected short-term rate. In other words, investors prefer to be liquid to illiquid, all else equal, and willdemand a liquidity premium in order to go long term. Thus, liquidity preference readily explains the upward sloping, or normal, yield curve. However, liquidity preferencedoes not readily explain other yield curve shapes.Market segmentation and preferred habitat theories indicate that the markets fordifferent maturity debt instruments are segmented. Market segmentation maintains that the rates for the different maturities are determined by the intersection of the supply and demand curves for the different maturity instruments. Market segmentation readilyexplains all shapes of yield curves. However, market segmentation is not observed in the real world. Investors and issuers will leave their preferred maturity habitats if yields are attractive enough on other maturities.The purpose of this question is to ascertain that students understand the variousexplanations (and deficiencies of these explanations) of term structure.63. Term structure of interest rates is the relationship between what variables? What isassumed about other variables? How is term structure of interest rates depictedgraphically?Difficulty: ModerateAnswer:Term structure of interest rates is the relationship between yield to maturity and term to maturity, all else equal. The "all else equal" refers to risk class. Term structure ofinterest rates is depicted graphically by the yield curve, which is usually a graph of U.S.governments of different yields and different terms to maturity. The use of U.S.governments allows one to examine the relationship between yield and maturity,holding risk constant. The yield curve depicts this relationship at one point in time only.This question is designed to ascertain that students understand the relationshipsinvolved in term structure, the restrictions on the relationships, and how therelationships are depicted graphically.64. Although the expectations of increases in future interest rates can result in an upwardsloping yield curve; an upward sloping yield curve does not in and of itself imply the expectations of higher future interest rates. Explain.Difficulty: ModerateAnswer:The effects of possible liquidity premiums confound any simple attempt to extractexpectation from the term structure. That is, the upward sloping yield curve may be due to expectations of interest rate increases, or due to the requirement of a liquiditypremium, or both. The liquidity premium could more than offset expectations ofdecreased interest rates, and an upward sloping yield would result.The purpose of this question is to assure that the student understands the confounding of the liquidity premium with the expectations hypothesis, and that the interpretations of term structure are not clear-cut.。

中考英语投资理财的风险评估单选题40题

中考英语投资理财的风险评估单选题40题1. A(n) ____ is a type of investment that represents an ownership share in a company.A. bondB. fundC. stockD. savings account答案解析：C。

本题考查股票的定义。

“stock”（股票）是一种代表对公司所有权份额的投资类型。

选项A“bond”（（债券）是一种债务证券，与公司所有权无关。

选项B“fund”（基金）是汇集众多投资者的资金进行投资的一种形式，并非直接代表公司所有权。

选项D“savings account”（（储蓄账户）是银行储蓄的一种方式，不属于公司所有权投资。

2. Which of the following is a debt security?A. StockB. FundC. BondD. Real estate答案解析：C。

本题考查债券的性质。

“bond”（债券）是一种债务证券。

选项A“stock”（（股票）代表公司所有权，不是债务证券。

选项B“fund”（（基金）是多种投资的组合形式，不是债务证券。

选项D“real estate”（房地产）是一种实物资产，不是债务证券。

3. A mutual ____ is an investment vehicle that pools money from many investors to invest in a diversified portfolio.A. stockB. bondC. fundD. insurance答案解析：C。

本题考查基金的定义。

“mutual fund”（（共同基金）是一种汇集众多投资者资金投资于多元化投资组合的投资工具。

选项A“stock”（（股票）是单个公司的所有权份额，不是汇集资金投资多种资产的形式。

选项B“bond”（（债券）是债务证券，与基金的定义不同。

投资学第八版英文答案 CHAPTER 1 THE INVESTMENT ENVIRONMENT

CHAPTER 1: THE INVESTMENT ENVIRONMENTPROBLEM SETS1. Ultimately, it is true that real assets determine the material well being of an economy. Nevertheless, individuals can benefit when financial engineering creates new products that allow them to manage their portfoliosof financial assets more efficiently. Because bundling and unbundlingcreates financial products with new properties and sensitivities to various sources of risk, it allows investors to hedge particular sources of riskmore efficiently.2. Securitization requires access to a large number of potential investors. To attract these investors, the capital market needs:a safe system of business laws and low probability of confiscatorytaxation/regulation;a well-developed investment banking industry;a well-developed system of brokerage and financial transactions, and;well-developed media, particularly financial reporting.These characteristics are found in (indeed make for) a well-developedfinancial market.3. Securitization leads to disintermediation; that is, securitization provides a means for market participants to bypass intermediaries. For example, mortgage-backed securities channel funds to the housing market without requiring that banks or thrift institutions make loans from theirown portfolios. As securitization progresses, financial intermediariesmust increase other activities such as providing short-term liquidity to consumers and small business, and financial services.4. Financial assets make it easy for large firms to raise the capital needed to finance their investments in real assets. If General Motors, for example, could not issue stocks or bonds to the general public, it wouldhave a far more difficult time raising capital. Contraction of the supplyof financial assets would make financing more difficult, thereby increasingthe cost of capital. A higher cost of capital results in less investment and lower real growth.5. Even if the firm does not need to issue stock in any particular year, the stock market is still important to the financial manager. The stock price provides important information about how the market values the firm's investment projects. For example, if the stock price rises considerably, managers might conclude that the market believes the firm's futureprospects are bright. This might be a useful signal to the firm to proceed with an investment such as an expansion of the firm's business.In addition, the fact that shares can be traded in the secondary market makes the shares more attractive to investors since investors know that, when they wish to, they will be able to sell their shares. This in turn makes investors more willing to buy shares in a primary offering, and thus improves the terms on which firms can raise money in the equity market.6. a. Cash is a financial asset because it is the liability of the federal government.b. No. The cash does not directly add to the productive capacity of the economy.c. Yes.d. Society as a whole is worse off, since taxpayers, as a group will make up for the liability.7. a. The bank loan is a financial liability for Lanni. (Lanni's IOU is the bank's financial asset.) The cash Lanni receives is a financial asset. The new financial asset created is Lanni's promissory note (that is, Lanni’s IOU to the bank).b. Lanni transfers financial assets (cash) to the software developers.In return, Lanni gets a real asset, the completed software. No financial assets are created or destroyed; cash is simply transferred from one partyto another.c. Lanni gives the real asset (the software) to Microsoft in exchangefor a financial asset, 1,500 shares of Microsoft stock. If Microsoftissues new shares in order to pay Lanni, then this would represent the creation of new financial assets.d. Lanni exchanges one financial asset (1,500 shares of stock) for another ($120,000). Lanni gives a financial asset ($50,000 cash) to the bank and gets back another financial asset (its IOU). The loan is "destroyed" in the transaction, since it is retired when paid off and no longer exists.8. a.Assets Liabilities & Shareholders’ equityCash $ 70,000 Bank loan $ 50,000Computers 30,000 Shareholders’equity50,000Total $100,000 Total $100,000 Ratio of real assets to total assets = $30,000/$100,000 = 0.30b.Assets Liabilities & Shareholders’ equitySoftwareproduct*$ 70,000 Bank loan $ 50,000 Computers 30,000 Shareholders’equity50,000Total $100,000 Total $100,000 *Valued at costRatio of real assets to total assets = $100,000/$100,000 = 1.0 c.Assets Liabilities & Shareholders’ equityMicrosoft shares $120,000 Bank loan $ 50,000Computers 30,000 Shareholders’equity100,000Total $150,000 Total $150,000Ratio of real assets to total assets = $30,000/$150,000 = 0.20 Conclusion: when the firm starts up and raises working capital, it is characterized by a low ratio of real assets to total assets. When it is in full production, it has a high ratio of real assets to total assets. Whenthe project "shuts down" and the firm sells it off for cash, financial assets once again replace real assets.9. For commercial banks, the ratio is: $107.5/$10,410.9 = 0.010For non-financial firms, the ratio is: $13,295/$25,164 = 0.528The difference should be expected primarily because the bulk of the business of financial institutions is to make loans; which are financial assets for financial institutions.10. a. Primary-market transactionb. Derivative assetsc. Investors who wish to hold gold without the complication and cost of physical storage.11. a. A fixed salary means that compensation is (at least in the short run) independent of the firm's success. This salary structure does not tie the manager’s immediate compensation to the success of the firm. However, the manager might view this as the safest compensation structure and therefore value it more highly.b. A salary that is paid in the form of stock in the firm means that the manager earns the most when the shareholders’ wealth is maximized. This structure is therefore most likely to align the interests of managers and shareholders. If stock compensation is overdone, however, the manager might view it as overly risky since the manager’s career is already linked to the firm, and this undiversified exposure would be exacerbated with a large stock position in the firm.c. Call options on shares of the firm create great incentives for managers to contribute to the firm’s success. In some cases, however, stock options can lead to other agency problems. For example, a manager with numerous call options might be tempted to take on a very risky investment project, reasoning that if the project succeeds the payoff will be huge, while if it fails, the losses are limited to the lost value of the options. Shareholders, in contrast, bear the losses as well as the gains on the project, and might be less willing to assume that risk.12. Even if an individual shareholder could monitor and improve managers’ performance, and thereby increase the value of the firm, the payoff would be small, since the ownership share in a large corporation would be very small. For example, if you own $10,000 of GM stock and can increase the value of the firm by 5%, a very ambitious goal, you benefit by only: 0.05 $10,000 = $500In contrast, a bank that has a multimillion-dollar loan outstanding to the firm has a big stake in making sure that the firm can repay the loan. Itis clearly worthwhile for the bank to spend considerable resources to monitor the firm.13. Mutual funds accept funds from small investors and invest, on behalf of these investors, in the national and international securities markets. Pension funds accept funds and then invest, on behalf of current and future retirees, thereby channeling funds from one sector of the economy to another.Venture capital firms pool the funds of private investors and invest in start-up firms.Banks accept deposits from customers and loan those funds to businesses, or use the funds to buy securities of large corporations.14. Treasury bills serve a purpose for investors who prefer a low-risk investment. The lower average rate of return compared to stocks is the price investors pay for predictability of investment performance and portfolio value.15. With a “top-down” investing style, you focus on asset allocation or the broad composition of the entire portfolio, which is the major determinant of overall performance. Moreover, top-down management is the natural way to establish a portfolio with a level of risk consistent with your risk tolerance. The disadvantage of an exclusive emphasis on top-down issues is that you may forfeit the potential high returns that could result from identifying and concentrating in undervalued securities or sectors of the market.With a “bottom-up” investing style, you try to benefit from identifying undervalued securities. The disadvantage is that you tend to overlook theoverall composition of your portfolio, which may result in a non-diversified portfolio or a portfolio with a risk level inconsistent withyour level of risk tolerance. In addition, this technique tends to require more active management, thus generating more transaction costs. Finally, your analysis may be incorrect, in which case you will have fruitlessly expended effort and money attempting to beat a simple buy-and-hold strategy.16. You should be skeptical. If the author actually knows how to achieve such returns, one must question why the author would then be so ready tosell the secret to others. Financial markets are very competitive; one of the implications of this fact is that riches do not come easily. High expected returns require bearing some risk, and obvious bargains are fewand far between. Odds are that the only one getting rich from the book isits author.17. a. The SEC website defines the difference between saving and investing in terms of the investment alternatives or the financial assetsthe individual chooses to acquire. According to the SEC website, saving is the process of acquiring a “safe” financial asset and investing is the process of acquiring “risky” financial assets.b. The economist’s definition of savings is the difference between income and consumption. Investing is the process of allocating one’s savings among available assets, both real assets and financial assets. The SEC definitions actually represent (according the economist’s definition) two kinds of investment alternatives.18. As is the case for the SEC definitions (see Problem 17), the SIA defines saving and investing as acquisition of alternative kinds offinancial assets. According to the SIA, saving is the process of acquiring safe assets, generally from a bank, while investing is the acquisition of other financial assets, such as stocks and bonds. On the other hand, the definitions in the chapter indicate that saving means spending less than one’s income. Investing is the process of allocating one’s savings among financial assets, including savings account deposits and money market accounts (“saving” according to the SIA), other financial assets such a s stocks and bonds (“investing” according to the SIA), as well as real assets.。

中考英语投资理财知识单选题40题

中考英语投资理财知识单选题40题1.If you want to make your money grow, you can choose to invest in stocks, bonds or _____.A.cashB.savingsC.real estateD.insurance答案：C。

“cash”是现金；“savings”是储蓄；“real estate”是房地产；“insurance”是保险。

想要让钱增值，可以选择投资股票、债券或房地产。

现金和储蓄一般不会让钱快速增值，保险主要是提供保障而不是增值手段。

2.Investing in _____ is considered a relatively safe option.A.stocksB.bondsC.futuresD.options答案：B。

“stocks”是股票；“bonds”是债券；“futures”是期货；“options”是期权。

投资债券通常被认为是相对安全的选择。

股票风险相对较高，期货和期权风险更大。

3.When you save money in a bank, you earn _____.A.interestB.dividendsD.profit答案：A。

“interest”是利息；“dividends”是股息；“rent”是租金；“profit”是利润。

把钱存银行会获得利息。

4._____ is a form of investment that involves lending money to a government or a company.A.Stock investmentB.Bond investmentC.Real estate investmentD.Insurance investment答案：B。

“Stock investment”是股票投资；“Bond investment”是债券投资；“Real estate investment”是房地产投资；“Insurance investment”是保险投资。

高一英语投资知识单选题50题

高一英语投资知识单选题50题1. In the financial market, a ____ is a type of investment that represents ownership in a company.A.stockB.bondC.currencymodity答案解析：A。

选项A“stock”意为股票，代表对公司的所有权。

选项B“bond”是债券。

选项C“currency”是货币。

选项D“commodity”是商品。

题干中提到代表对公司的所有权，所以是股票。

2. A ____ is a debt investment in which an investor loans money to an entity.A.stockB.bondC.mutual fundD.real estate答案解析：B。

选项B“bond”是债券，即一种债务投资，投资者把钱借给一个实体。

选项A“stock”股票不是债务投资。

选项C“mutual fund”共同基金。

选项D“real estate”房地产。

3. Which of the following is not a form of investment?A.savings accountB.credit cardC.stockD.bond答案解析：B。

选项B“credit card”信用卡不是一种投资形式，它是一种消费工具。

选项A“savings account”储蓄账户是一种投资形式，虽然收益较低。

选项C“stock”股票和选项D“bond”债券都是常见的投资形式。

4. A ____ is a collection of stocks, bonds, and other securities.A.mutual fundB.stock optionC.insurance policyD.bank loan答案解析：A。

选项A“mutual fund”共同基金是由股票、债券和其他证券组成的集合。

中考英语投资理财的策略选择练习题30题(答案解析)

中考英语投资理财的策略选择练习题30题(答案解析)1.If you want to make your money grow, you can choose to invest in _____.A.stocksB.cashC.debtsD.expenses答案解析：A。

“stocks”是股票，投资股票有可能使钱增值。

“cash”是现金，持有现金通常不会使钱快速增长。

“debts”是债务，投资债务一般风险较大且不一定能使钱增长。

“expenses”是花费，不是投资方式。

本题考查投资理财的基本概念和词汇理解。

2.Which one is a low-risk investment option?A.bondsB.derivativesC.optionsD.futures答案解析：A。

“bonds”是债券，通常被认为是低风险的投资选择。

“derivatives”是衍生品，“options”是期权，“futures”是期货，这三者通常风险较高。

本题考查不同投资方式的风险程度和词汇含义。

3.Saving money in a bank account is a form of _____.A.investmentB.speculationC.gamblingD.wasting答案解析：A。

把钱存在银行账户是一种投资方式，虽然收益可能相对较低但较为稳定。

“speculation”是投机，“gambling”是赌博，“wasting”是浪费，这三个选项都不符合存钱在银行账户的性质。

本题考查对不同行为的性质判断和词汇理解。

4.When you invest in real estate, you are buying _____.A.houses and landB.stocks and bondsC.currenciesmodities答案解析：A。

投资房地产就是购买房子和土地。

“stocks and bonds”是股票和债券，“currencies”是货币，“commodities”是商品。

高三英语投资策略单选题50题

高三英语投资策略单选题50题1.Which of the following is an investment vehicle?A.Savings accountB.Credit cardC.DebtD.Expense答案解析：A。

“investment vehicle”意为投资工具。

储蓄账户可以产生利息，是一种投资工具。

信用卡是一种支付工具，不是投资工具；债务不是投资工具；费用不是投资工具。

2.What is the main purpose of diversification in investing?A.To increase riskB.To reduce riskC.To increase return onlyD.To reduce return only答案解析：B。

“diversification”意为多元化。

投资中的多元化主要目的是降低风险。

多元化投资可以避免把所有鸡蛋放在一个篮子里，从而降低因单一投资失败而导致的巨大损失。

3.Which of the following is a long-term investment?A.Buying stocks for a few daysB.Putting money in a savings account for a monthC.Investing in real estateD.Buying a luxury item答案解析：C。

长期投资是指投资期限较长的投资。

购买股票几天不是长期投资；把钱存进储蓄账户一个月也不是长期投资；投资房地产通常是长期投资；购买奢侈品不是投资。

4.What does “ROI” stand for?A.Return on investmentB.Risk of investmentC.Rate of interestD.Reserve of income答案解析：A。

“ROI”是“Return on investment”的缩写，意为投资回报率。

证券投资学英文版答案

CHAPTER 2: ASSET CLASSES ANDFINANCIAL INSTRUMENTS1. (d)2. The equivalent taxable yield is: 6.75%/(1 ? 0.34) = 10.23%3. (a) Writing a call entails unlimited potential losses as the stock price rises.4. a. You would have to pay the asked price of:94:30 = 94.9375% of par = $949.375b. The coupon rate is 3.625% implying coupon payments of $36.25 annually or, more precisely, $18.125 semiannually.c. Current yield = (Annual coupon income/price)= $36.25/$949.375 = 0.0382 = 3.82%5. Preferred stock is like long-term debt in that it typically promises a fixed payment each year. In this way, it is a perpetuity. Preferred stock is also like long-term debt in that it does not give the holder voting rights in the firm. Preferred stock is like equity in that the firm is under no contractual obligation to make the preferred stock dividend payments. Failure to make payments does not set off corporate bankruptcy. With respect to the priority of claims to the assets of the firm in the event of corporate bankruptcy, preferred stock has a higher priority than common equity buta lower priority than bonds.6. Money market securities are called ¡°cash equivalents¡± because of their great liquidity. The prices of money market securities are very stable, and they can be converted to cash (i.e., sold) on very short notice and with very low transaction costs.7. P = $10,000/1.02 = $9,803.928. The total before-tax income is $4. After the 70% exclusion for preferred stock dividends, the taxable income is: 0.30 ¡Á $4 = $1.20Therefore, taxes are: 0.30 ¡Á $1.20 = $0.36After-tax income is: $4.00 ¨C $0.36 = $3.64Rate of return is: $3.64/$40.00 = 9.10%9. a. General Dynamics closed today at $112.65, which was $1.56 higher than yesterday¡¯s price. Yesterday¡¯s closing price was: $111.09b. You could buy: $5,000/$112.65 = 44.4 sharesc. Your annual dividend income would be: 44.4 ? $1.60 = $71.04d. The price-to-earnings ratio is 16 and the price is $112.65. Therefore:$112.65/Earnings per share = 16 ? Earnings per share = $7.04 10. a. At t = 0, the value of the index is: (90 + 50 + 100)/3= 80At t = 1, the value of the index is: (95 + 45 + 110)/3 = 83.333 The rate of return is: (83.333/80) ? 1 = 4.17%b. In the absence of a split, Stock C would sell for 110, so the value of the index would be: 250/3 = 83.333After the split, Stock C sells for 55. Therefore, we need to find the divisor (d) such that:83.333 = (95 + 45 + 55)/d ? d = 2.340c. The return is zero. The index remains unchanged because the return for each stock separately equals zero.11. a. Total market value at t = 0 is: ($9,000 + $10,000 + $20,000) = $39,000Total market value at t = 1 is: ($9,500 + $9,000 + $22,000) = $40,500Rate of return = ($40,500/$39,000) ¨C 1 = 3.85%b. The return on each stock is as follows:rA = (95/90) ¨C 1 = 0.0556rB = (45/50) ¨C 1 = ¨C0.10rC = (110/100) ¨C 1 = 0.10The equally-weighted average is:[0.0556 + (-0.10) + 0.10]/3 = 0.0185 = 1.85%12. The after-tax yield on the corporate bonds is: 0.09 ?(1 ¨C 0.30) = 0.0630 = 6.30%Therefore, municipals must offer at least 6.30% yields.13. a. The taxable bond. With a zero tax bracket, the after-tax yield for the taxable bond is the same as the before-tax yield (5%), which is greater than the yield on the municipal bond.b. The taxable bond. The after-tax yield for the taxable bond is:0.05 ? (1 ¨C 0.10) = 4.5%c. You are indifferent. The after-tax yield for the taxable bond is:0.05 ? (1 ¨C 0.20) = 4.0%The after-tax yield is the same as that of the municipal bond.d. The municipal bond offers the higher after-tax yield for investors in tax brackets above 20%.14. Equation (2.5) shows that the equivalent taxable yield is: r = rm /(1 ¨C t)a. 4.00%b. 4.44%c. 5.00%d. 5.71%15. If the after-tax yields are equal, then: 0.056 = 0.08¡Á (1 ¨C t)This implies that t = 0.30 =30%.16. a. The higher coupon bond.b. The call with the lower exercise price.c. The put on the lower priced stock.17. a. You bought the contract when the futures price was 1687.00 (see Figure 2.12). The contract closes at a price of 1700, which is 13.0 higher than the original futures price. The contract multiplier is $100. Therefore, the profit will be:13.0 ? $100 = $1,300b. Open interest is 47,990 contracts.18. a. Since the stock price exceeds the exercise price, you will exercise the call.The payoff on the option will be: $37 ? $35 = $2The option originally cost $1.97, so the profit is: $2.00 ? $1.97 = $0.03Rate of return = $0.03/$1.97 = 0.0152 = 1.52%b. If the exercise price were $32.50, you would exercise the call.The payoff on the option will be: $37.00 ? $32.50 = $4.50 The option originally cost $3.70 so the profit is: $4.50 ? $3.70 = $0.80Rate of return = $0.80/$3.70 = 0.2162 = 21.62%c. If the put has an exercise price of $35, you would not exercise for any stock price of $35 or above. The loss on the put would be the initial cost, $1.30.19. There is always a possibility that the option will be in-the-money at some time prior to expiration. Investors will pay something for this possibility of a positive payoff. 20.Value of call at expiration Initial Cost Profita. 0 8 -8b. 0 8 -8c. 0 8 -8d. 10 8 2e. 20 8 12Value of put at expiration Initial Cost Profita. 20 12 8b. 10 12 -2c. 0 12 -12d. 0 12 -12e. 0 12 -1221. A put option conveys the right to sell the underlying asset at the exercise price. A short position in a futures contract carries an obligation to sell the underlying asset at the futures price.22. A call option conveys the right to buy the underlying asset at the exercise price. A long position in a futures contract carries an obligation to buy the underlying asset at the futures price.23. The spread will widen. Deterioration of the economy increases credit risk, that is, the likelihood of default. Investors will demand a greater premium on debt securities subject to default risk.24. On the day we tried this experiment, 36 of the 50 stocks met this criterion, leading us to conclude that returns on stock investments can be quite volatile.CHAPTER 3: HOW SECURITIES ARE TRADED1. a. In addition to the explicit fees of $70,000, FBN appears to have paid an implicit price in underpricing of the IPO. The underpricing is $3 per share, or a total of $300,000, implying total costs of $370,000.b. No. The underwriters do not capture the part of the costs corresponding to the underpricing. The underpricing may be a rational marketing strategy. Without it, the underwriters would need to spend more resources in order to place the issue with the public. The underwriters would then need to charge higher explicit fees to the issuing firm. The issuing firm may be just as well off paying the implicit issuance cost represented by the underpricing.2. a. In principle, potential losses are unbounded, growing directly with increases in the price of Harrier Group.b. If the stop-buy order can be filled at ¡ê17.50, the maximum possible loss per share is ¡ê1.50. If the price of Harrier Group shares goes above ¡ê17.50, then the stop-buy order would be executed, limiting the losses from the short sale.3. The broker is instructed to attempt to sell your Marks & Spencer stock as soon as the Marks & Spencer stock trades at a bid price of ¡ê7.03 or less. Here, the broker will attempt to execute, but may not be able to sell at ¡ê7.03, since the bid price is now ¡ê7.00. The price at which you sell may be more or less than ¡ê7.03 because the stop-loss becomes a marketorder to sell at current market prices.4. a. €55.50b. €55.25c. The trade will not be executed because the bid price is lower than the price specified in the limit sell order.d. The trade will not be executed because the asked price is greater than the price specified in the limit buy order.5. a. In a specialist market, there can be price improvement in the two market orders. Brokers for each of the market orders (i.e., the buy and the sell orders) can agree to execute a trade inside the quoted spread. For example, they can trade at €55.37,thus improving the price for both customers by €0.12 or €0.13 relative to the quoted bid and asked prices. The buyer gets the stock for €0.13 less than the quoted asked price, and the seller receives €0.12 more for the stock than the quoted bid price.b. Whereas the limit order to buy at €55.30 would not be executed in a dealer market (since the asked price is €55.50), it could be executed in a specialist market. A broker for another customer with an order to sell at market would view the limit buy order as the best bid price; the two brokers could agree to the trade and bring it to the specialist, who would then execute the trade.6. The SuperDot system expedites the flow of orders from exchange members to the specialists. It allows members to send computerized orders directly to the floor of the exchange, which allows the nearly simultaneous sale of each stock in a large portfolio. This capability is necessary for program trading.7. a. You buy 200 shares of Telec om for €8,000. These shares increase in value by 10%, or €800. You pay interest of: 0.08 ? €4,000 = €320The rate of return will be:= 0.12 = 12%b. The value of the 200 shares is 200P. Equity is (200P ¨C €4,000). You will receive a margin call when:= 0.30 ? when P = €28.57 or lower8. a. Initial margin is 50% of €4,000 or €2,000.b. Total assets are €6,000 (€4,000 from the sale of the stock and €2,000 put up for margin). Liabilities are 100P. Therefore, net worth is (€6,000 ¨C 100P). A margin cal l will be issued when:= 0.30 ? when P = €46.15 or higher9. The total cost of the purchase is: $40 ? 500 = $20,000You borrow $5,000 from your broker, and invest $15,000 of your own funds. Your margin account starts out with net worth of $15,000.a. (i) Net worth increases to: ($44 ? 500) ¨C $5,000 = $17,000 Percentage gain = $2,000/$15,000 = 0.1333 = 13.33%(ii) With price unchanged, net worth is unchanged. Percentage gain = zero(iii) Net worth falls to ($36 ? 500) ¨C $5,000 = $13,000 Percentage gain = (¨C$2,000/$15,000) = ¨C0.1333 = ¨C13.33% The relationship between the percentage return and the percentage change in the price of the stock is given by:% return = % change in price ? = % change in price ? 1.333 For example, when the stock price rises from $40 to $44, the percentage change in price is 10%, while the percentage gain for the investor is:% return = 10% ? = 13.33%b. The value of the 500 shares is 500P. Equity is (500P ¨C $5,000). You will receive a margin call when:= 0.25 ? when P = $13.33 or lowerc. The value of the 500 shares is 500P. But now you have borrowed $10,000 instead of $5,000. Therefore, equity is (500P ¨C $10,000). You will receive a margin call when:= 0.25 ? when P = $26.67With less equity in the account, you are far more vulnerable to a margin call.d.By the end of the year, the amount of the loan owed to the broker grows to:$5,000 ? 1.08 = $5,400The equity in your account is (500P ¨C $5,400). Initial equity was $15,000. Therefore, your rate of return after one year is as follows:(i) = 0.1067 = 10.67%(ii) = ¨C0.0267 = ¨C2.67%(iii) = ¨C0.1600 = ¨C16.00%The relationship between the percentage return and the percentage change in the price of Intel is given by:% return =For example, when the stock price rises from $40 to $44, the percentage change in price is 10%, while the percentage gain for the investor is:=10.67%e. The value of the 500 shares is 500P. Equity is (500P ¨C $5,400). You will receive a margin call when:= 0.25 ? when P = $14.40 or lower10. a. The gain or loss on the short position is: (¨C500 ? ?P) Invested funds = $15,000Therefore: rate of return = (¨C500 ? ?P)/15,000The rate of return in each of the three scenarios is:(i) rate of return = (¨C500 ? $?)/$15,000 = ¨C0.1333 = ¨C13.33%(ii) rate of return = (¨C500 ? $?)/$15,000 = 0%(iii) rate of return = [¨C500 ? (¨C$4)]/$15,000 = +0.1333 = +13.33%b. Total assets in the margin account are:$20,000 (from the sale of the stock) + $15,000 (the initial margin) = $35,000Liabilities are 500P. A margin call will be issued when:= 0.25 ? when P = $56 or higherc. With a $1 dividend, the short position must now pay on the borrowed shares: ($1/share ? 500 shares) = $500. Rate of return is now:[(¨C500 ? ?P) ¨C 500]/15,000(i) rate of return = [(¨C500 ? $4) ¨C $500]/$15,000 = ¨C0.1667 = ¨C16.67%(ii) rate of return = [(¨C500 ? $0) ¨C $500]/$15,000 = ¨C0.0333 = ¨C3.33%(iii) rate of return = [(¨C500) ? (¨C$4) ¨C $500]/$15,000 = +0.1000 = +10.00%Total assets are $35,000, and liabilities are (500P + 500).A margin call will be issued when:= 0.25 ? when P = $55.20 or higher11. a. The stock is purchased for: 300 ? £¤ 4,000 = £¤1,200,000The amount borrowed is £¤ 400,000. Therefore, the investor put up equity, or margin, of £¤800,000.b. If the share price falls to £¤3,000, then the value of the stock falls to £¤900,000. By the end of the year, the amount of the loan owed to the broker grows to:£¤ 400,000 ? 1.08 = £¤ 432,000Therefore, the remaining margin in the investor¡¯s account is: £¤900,000 ? £¤ 432,000 = £¤ 468,000The percentage margin is now: £¤ 468,000/£¤900,000 = 0.52 = 52%Therefore, the investor will not receive a margin call.c. The rate of return on the investment over the year is: (Ending equity in the account ? Initial equity)/Initial equity = (£¤ 468,000 ? £¤800,000)/£¤800,000 = ?0.415 = ?41.5%12. a. The initial margin was: 0.50 ? 1,000 ? £¤ 4,000 = £¤2,000,000As a result of the increase in the stock price Old Economy Traders loses:£¤1,000 ? 1,000 = £¤1,000,000Therefore, margin decreases by £¤1,000,000. Moreover, Old Economy Traders must pay the dividend of £¤200 per share to the lender of the shares, so that the margin in the account decreases by an additional £¤200,000. Therefore, the remaining margin is:£¤2,000,000 ¨C £¤1,000,000 ¨C £¤200,000 = £¤800,000b. The percentage margin is: £¤800,000/£¤5,000,000 = 0.16 = 16%So there will be a margin call.c. The equity in the account decreased from £¤2,000,000 to £¤800,000 in one year, for a rate of return of: (?£¤1,200,000/£¤2,000,000) = ?0.60 = ?60%13. Much of what the specialist does (e.g., crossing orders and maintaining the limit order book) can be accomplished by a computerized system. In fact, some exchanges use an automated system for night trading. A more difficult issue to resolve is whether the more discretionary activities of specialists involving trading for their own accounts (e.g., maintaining an orderly market) can be replicated by a computer system.14. a. The buy order will be filled at the best limit-sell order price: $50.25b. The next market buy order will be filled at the next-best limit-sell order price: $51.50c. You would want to increase your inventory. There is considerable buying demand at prices just below $50, indicating that downside risk is limited. In contrast, limit sell orders are sparse, indicating that a moderate buy order could result in a substantial price increase.15. a. You will not receive a margin call. You borrowed $20,000 and with another $20,000 of your own equity you bought 1,000 shares of Disney at $40 per share. At $35 per share, the market value of the stock is $35,000, your equity is $15,000, and the percentage margin is: $15,000/$35,000 = 42.9%Your percentage margin exceeds the required maintenance margin.b. You will receive a margin call when:= 0.35 ? when P = $30.77 or lower16. The dealer sets the bid and asked price. Spreads should be higher on inactively traded stocks and lower on actively traded stocks.17. Answers to this problem will vary.18. a. Over short periods of time, the price of an exchange membership generally increases with increases in trading activity. This makes sense because trading commissions depend on trading volume.b. The price of an exchange membership has risen far less in percentage terms than trading volume. This suggests that the commissions charged to traders on "typical" trades have fallen over time.19. The proceeds from the short sale (net of commission) were:(C$14 ? 100) ¨C C$50 = C$1,350A dividend payment of C$200 was withdrawn from the account. Covering the short sale at C$9 per share cost you (including commission): C$900 + C$50 = C$950Therefore, the value of your account is equal to the net profit on the transaction:C$1350 ¨C C$200 ¨C C$950 = C$200Note that your profit (C$200) equals (100 shares ? profit per share of C$2). Your net proceeds per share was: C$14 selling price of stock¨CC$ 9 repurchase price of stock¨CC$ 2 dividend per share¨CC$ 1 2 trades ? C$0.50 commission per shareC$ 220. (d) The broker will sell, at current market price, after the first transaction at $55 or less.21. (b)22. (d)CHAPTER 4: MUTUAL FUNDS ANDOTHER INVESTMENT COMPANIES1. a. Unit investment trusts: diversification from large-scale investing, lower transaction costs associated with large-scale trading, low management fees, predictable portfolio composition, guaranteed low portfolio turnover rate.b.Open-end funds: diversification from large-scale investing, lower transaction costs associated with large-scale trading,professional management that may be able to take advantage of buy or sell opportunities as they arise, record keeping.c. Individual stocks and bonds: No management fee, realization of capital gains or losses can be coordinated with investor¡¯s personal tax situation, portfolio can be designed to investor¡¯s specific risk profile.2. Balanced funds keep relatively stable proportions of funds invested in each asset class. They are meant as convenient instruments to provide participation in a range of asset classes. Life-cycle funds are balanced funds whose asset mix generally depends on the age of the investor. Aggressive life-cycle funds, with larger investments in equities, are marketed to younger investors, while conservative life-cycle funds, with larger investments in fixed-income securities, are designed for older investors. Asset allocation funds, in contrast, may vary the proportions invested in each asset class by large amounts as predictions of relative performance across classes vary. Asset allocation funds therefore engage in more aggressive market timing.3. Open-end funds are obligated to redeem investor's shares at net asset value, and thus must keep cash or cash-equivalent securities on hand in order to meet potential redemptions. Closed-end funds do not need the cash reserves because there are no redemptions for closed-end funds. Investors in closed-end funds sell their shares when they wish to cash out.4. The unit investment trust should have lower operating expenses. Because the investment trust portfolio is fixed once the trust is established, it does not have to pay portfolio managers to constantly monitor and rebalance the portfolio as perceived needs or opportunities change. Because the portfolio is fixed, the unit investment trust also incurs virtually no trading costs.5. The offering price includes a 6% front-end load, or sales commission, meaning that every dollar paid results in only €0.94 going toward purchase of shares. Therefore:Offering price = = €13.306. NAV = offering price ? (1 ¨C load) = SFr14.50 ???.95 = SFr13.787. Stock Value held by fundA $ 7,000,000B 12,000,000C 8,000,000D 15,000,000Total $42,000,000Net asset value = = $10.498. Value of stocks sold and replaced = $15,000,000Turnover rate = = 0.357 = 35.7%9. a. £¤3,940b. Premium (or discount) = = = ¨C0.086 = -8.6%The fund sells at an 8.6% discount from NAV.10. Rate of return =11. a. Start-of-year price: P0 = ¡ê12.00 ? 1.02 = ¡ê12.24 End-of-year price: P1 = ¡ê12.10 ? 0.93 = ¡ê11.25Although NAV increased by ¡ê0.10, the price of the fund decreased by ¡ê0.99.Rate of return =b. An investor holding the same portfolio as the manager would have earned a rate of return based on the increase in the NAV of the portfolio:Rate of return =12. a. Empirical research indicates that past performance of mutual funds is not highly predictive of future performance, especially for better-performing funds. While there may be some tendency for the fund to be an above average performer next year, it is unlikely to once again be a top 10% performer.b. On the other hand, the evidence is more suggestive of a tendency for poor performance to persist. This tendency is probably related to fund costs and turnover rates. Thus if the fund is among the poorest performers, investors would be concerned that the poor performance will persist.13. NAV0 = €200,000,000/10,000,000 = €20Dividends per share = €2,000,000/10,000,000 = €0.20NAV1 is based on the 8% price gain, less the 1% 12b-1 fee: NAV1 = €20 ? 1.08 ? (1 ¨C 0.01) = €21.384Rate of return = = 0.0792 = 7.92%14. The excess of purchases over sales must be due to new inflows into the fund. Therefore, $400 million of stock previously held by the fund was replaced by new holdings. So turnover is: $400/$2,200 = 0.182 = 18.2%15. Fees paid to investment managers were: 0.007 ? $2.2 billion = $15.4 millionSince the total expense ratio was 1.1% and the management fee was 0.7%, we conclude that 0.4% must be for other expenses. Therefore, other administrative expenses were: 0.004 ? $2.2 billion = $8.8 million16. As an initial approximation, your return equals the return on the shares minus the total of the expense ratio and purchase costs: 12% ? 1.2% ? 4% = 6.8%But the precise return is less than this because the 4% load is paid up front, not at the end of the year.To purchase the shares, you would have had to invest: $20,000/(1 ? 0.04) = $20,833The shares increase in value from $20,000 to: $20,000 ? (1.12 ?0.012) = $22,160The rate of return is: ($22,160 ? $20,833)/$20,833 = 6.37%17. a. After two years, each dollar invested in a fund witha 4% load and a portfolio return equal to r will grow to: $0.96 ?(1 + r ¨C 0.005)2Each dollar invested in the bank CD will grow to: $1 ? 1.062 If the mutual fund is to be the better investment, then the portfolio return (r) must satisfy:0.96 ? (1 + r ¨C 0.005)2 > 1.0620.96 ? (1 + r ¨C 0.005)2 > 1.1236(1 + r ¨C 0.005)2 > 1.17041 + r ¨C 0.005 > 1.08191 + r > 1.0869Therefore: r > 0.0869 = 8.69%b. If you invest for six years, then the portfolio return must satisfy:0.96 ? (1 + r ¨C 0.005)6 > 1.066 = 1.4185(1 + r ¨C 0.005)6 > 1.47761 + r ¨C 0.005 > 1.06721 + r > 1.0722r > 7.22%The cutoff rate of return is lower for the six-year investment because the ¡°fixed cost¡± (i.e., the one-time front-end load) is spread out over a greater number of years.c. With a 12b-1 fee instead of a front-end load, the portfolio must earn a rate of return (r) that satisfies:1 + r ¨C 0.005 ¨C 0.0075 > 1.06In this case, r must exceed 7.25% regardless of the investment horizon.18. The turnover rate is 50%. This means that, on average, 50% of the portfolio is sold and replaced with other securities each year. Trading costs on the sell orders are 0.4%; and the buy orders to replace those securities entail another 0.4% in trading costs. Total trading costs will reduce portfolio returns by: 2 ? 0.4% ? 0.50 = 0.4%19. For the bond fund, the fraction of portfolio income given up to fees is:= 0.150 = 15.0%For the equity fund, the fraction of investment earnings given up to fees is:= 0.050 = 5.0%Fees are a much higher fraction of expected earnings for the bond fund, and therefore may be a more important factor in selecting the bond fund.This may help to explain why unmanaged unit investment trusts are concentrated in the fixed income market. The advantages of unit investment trusts are low turnover and low trading costs and management fees. This is a more important concern to bond-market investors.20. Suppose you have $1,000 to invest. The initial investment in Class A shares is $940 net of the front-end load. After four years, your portfolio will be worth: $940 ? (1.10)4 = $1,376.25Class B shares allow you to invest the full $1,000, but your investment performance net of 12b-1 fees will be only 9.5%, and you will pay a 1% back-end load fee if you sell after four years. Your portfolio value after four years will be:$1,000 ? (1.095)4 = $1,437.66After paying the back-end load fee, your portfolio value will be:$1,437.66 ???.99 = $1,423.28Class B shares are the better choice if your horizon is four years.With a fifteen-year horizon, the Class A shares will be worth: $940 ? (1.10)15 = $3,926.61For the Class B shares, there is no back-end load in this case since the horizon is greater than five years. Therefore, the value of the Class B shares will be:$1,000 ? (1.095)15 = $3,901.32At this longer horizon, Class B shares are no longer the better choice. The effect of Class B's 0.5% 12b-1 fees accumulates over time and finally overwhelms the 6% load charged to Class A investors.21. Suppose that finishing in the top half of all portfolio managers is purely luck, and that the probability of doing so in any year is exactly ?. Then the probability that any particular manager would finish in the top half of the sample five years in a row is (?)5 = 1/32. We would then expect tofind that [350 ? (1/32)] = 11 managers finish in the top half for each of the five consecutive years. This is precisely what we found. Thus, we should not conclude that the consistent performance after five years is proof of skill. We would expect to find eleven managers exhibiting precisely this level of "consistency" even if performance is due solely to luck.CHAPTER 5: LEARNING ABOUT RETURN AND RISKFROM THE HISTORICAL RECORD1. a. The ¡°Inflation-Plus¡± CD is the safer investment because it guarantees the purchasing power of the investment. Using the approximation that the real rate equals the nominal rate minus the inflation rate, the CD provides a real rate of3.5% regardless of the inflation rate.b. The expected return depends on the expected rate of inflation over the next year. If the expected rate of inflation is less than 3.5% then the conventional CD offers a higher real return than the Inflation-Plus CD; if the expected rate of inflation is greater than 3.5%, then the opposite is true.c. If you expect the rate of inflation to be 3% over the next year, then the conventional CD offers you an expected real rate of return of 4%, which is 0.5% higher than the real rate on the inflation-protected CD. But unless you know that inflation will be 3% with certainty, the conventional CD is also riskier. The question of which is the better investment then depends on your attitude towards risk versus return. You might choose to diversify and invest part of your funds in each.d. No. We cannot assume that the entire difference between the risk-free nominal rate (on conventional CDs) of 7% and the real risk-free rate (on inflation-protected CDs) of 3.5% is the expected rate of inflation. Part of the difference is probably a risk premium associated with the uncertainty surrounding the real rate of return on the conventional CDs. This implies that the expected rate of inflation is less than 3.5% per year.2. From Table 5.3, the average risk premium for large-capitalization U.S. stocks for the period 1926-2005 was: (12.15% ?3.75%) = 8.40% per yearAdding 8.40% to the 6% risk-free interest rate, the expected annual HPR for the S&P 500 stock portfolio is: 6.00% + 8.40% = 14.40%。

中考英语投资理财的风险评估单选题40题

中考英语投资理财的风险评估单选题40题1. If you want to invest in stocks, you should know that ____ are not guaranteed.A. profitsB. lossesC. pricesD. dividends答案解析：A。

本题考查股票投资的基本概念。

“profits”（利润）在股票投资中是不被保证的，股票的收益具有不确定性。

B选项“losses” 损失），虽然股票投资可能会有损失，但这里说的是不被保证的东西，不是损失本身。

C选项“prices”（价格），股票价格是波动的，但这不是这里表达的重点。

D选项“dividends”（股息），股息是公司盈利后分给股东的一部分，也不是这里所表达的不被保证的内容。

2. When you invest in bonds, you usually get a fixed ____ over a certain period.A. rateB. amountC. shareD. value答案解析：A。

在债券投资中，通常会在一定时期内得到一个固定的“rate”（利率）。

B选项“amount”（数量、金额）表述太宽泛，没有准确表达债券的特点。

C选项“share”（份额）通常用于股票等投资概念，不适合债券。

D选项“value” 价值），债券有固定利率而不是固定价值。

3. Funds are managed by ____, who make investment decisions.A. investorsB. brokersC. managersD. bankers答案解析：C。

基金是由“managers”（经理）管理的，他们做出投资决策。

A选项“investors” 投资者）是进行投资的人，不是管理基金的。

B选项“brokers” 经纪人）主要是促成交易，而非管理基金。

D选项“bankers” 银行家）与基金管理关系不大。

人教版中考英语投资理财的策略选择练习题30题含答案解析

人教版中考英语投资理财的策略选择练习题30题含答案解析1. You can put your money in a bank or buy some _____.A.stocksB.booksC.applesD.pens答案解析：A。

选项A“stocks”是股票的意思，在投资理财中可以选择把钱存入银行或者购买股票等理财产品。

选项B“books”是书，选项C“apples”是苹果，选项D“pens”是钢笔，都与投资理财无关。

2. Saving money in a bank is a kind of _____ investment.A.riskB.riskyC.safeD.safely答案解析：C。

选项C“safe”是安全的，把钱存银行是一种安全的投资方式。

选项A“risk”是风险，选项B“risky”是有风险的，存钱在银行相对风险较小。

选项D“safely”是安全地，副词，不符合此处语法要求。

3. If you want to get more money in a short time, you can try to buy some _____.A.housesB.carsC.goldD.clothes答案解析：C。

选项C“gold”是黄金，在投资理财中黄金有可能在短时间内获得更多收益。

选项A“houses”房子，购买房子通常需要大量资金且短期内不一定能获得很多收益。

选项B“cars”是汽车，一般是消费品不是投资品。

选项D“clothes”是衣服，也是消费品不是投资品。

4. _____ is a common investment tool.puterC.BondD.Table答案解析：C。

选项C“bond”是债券，是一种常见的投资工具。

选项A“TV”是电视，选项B“Computer”是电脑，选项D“Table”是桌子，都不是投资工具。

5. Buying a house can be regarded as a long-term _____.A.investB.investmentC.investorD.investing答案解析：B。

中考英语投资理财的策略选择练习题40题

中考英语投资理财的策略选择练习题40题1<背景文章>Investing and managing finances is an important skill that everyone should learn. Saving money is just the first step. Investing your money wisely can help you grow your wealth and achieve your financial goals.Investment can be defined as putting your money into something with the expectation of getting a return. This could be in the form of stocks, bonds, real estate, or even starting your own business. Each type of investment has its own risks and rewards.The importance of investment cannot be overstated. It allows you to build wealth over time and provides financial security for the future. By investing early, you can take advantage of compound interest and watch your money grow.Investing also helps you beat inflation. Inflation is the increase in the price of goods and services over time. If you just keep your money in a savings account, the value of your money will gradually decrease due to inflation. However, by investing in assets that appreciate in value, you can stay ahead of inflation and protect your purchasing power.Moreover, investment can provide you with passive income. Passive income is money that you earn without actively working for it. For example,if you invest in rental properties, you can earn rental income every month. This can give you financial freedom and allow you to pursue your dreams and interests.In conclusion, understanding the basics of investment and managing your finances is crucial for a secure future. Start learning about investment today and take control of your financial destiny.1. What is investment?A. Spending money.B. Saving money.C. Putting money into something with the expectation of getting a return.D. Buying expensive things.答案：C。

中考英语投资理财的策略选择练习题30题(答案解析)

中考英语投资理财的策略选择练习题30题(答案解析)1. My father wants to invest some money. He doesn't like high - risk investments. He may choose ____.A. stocksB. fundsC. savingsD. bonds答案解析：C。

本题考查不同投资理财方式的特点以及相关英语词汇。

stocks（股票）通常风险较高，不符合不喜欢高风险投资的要求，所以A选项错误。

funds（（基金）也存在一定风险，B选项不符合题意。

savings（（储蓄）风险较低，比较稳定，符合不想承担高风险的情况，故C正确。

bonds（债券）虽然风险相对股票较低，但相比储蓄还是有一定风险波动，D选项不合适。

2. Mary is a young investor. She hopes to get high returns in a short time. She might consider ____.A. fixed depositsB. real estateC. stocksD. insurance答案解析：C。

首先分析各选项的含义及特点。

fixed deposits（（定期存款）收益相对稳定但回报不会在短期内很高，A选项不符合。

real estate（（房地产）投资周期较长，短期内难以获得高回报，B选项错误。

stocks（（股票）有较高的收益潜力，如果运气好、操作得当，短期内可能获得高回报，C选项正确。

insurance（（保险）主要功能是保障而不是获取高短期回报，D选项不合适。

3. If you want a relatively stable income from your investment and don't want to worry about big losses, ____ is a good choice.A. mutual fundsB.venture capitalC. goldD. savings account答案解析：D。

投资学选择题及答案英文版

INVESTMENTTUTORIAL 1SUMISSION DEADLINE: OCT 221. Primary market refers to the market ____________.A. that attempts to identify mispriced securities and arbitrage opportunities.B. in which investors trade already issued securities.C. where new issues of securities are offered.D. in which securities with custom-tailored characteristics are designed.2. Asset allocation refers to the _________.A. allocation of the investment portfolio across broad asset classesB. analysis of the value of securitiesC. choice of specific assets within each asset classD. none of the answers define asset allocation3. An example of a derivative security is _________.A. a common share of General MotorsB. a call option on Intel stockC. a Ford bondD. a U.S. Treasury bond4. Money Market securities are characterized by ________.I. maturity less than one yearII. safety of the principal investmentIII. low rates of returnA. I onlyB. I and II onlyC. I and III onlyD. I, II and III5. __________ assets generate net income to the economy and __________ assets define allocation of income among investors.A. Financial, financialB. Financial, realC. Real, financialD. Real, real6. An important trend that has changed the contemporary investment market is _________.A. financial engineeringB. globalizationC. securitizationD. all three of the other answers7. Securitization refers to the creation of new securities by _________.A. selling individual cash flows of a security or loanB. repackaging individual cash flows of a security or loan into a new payment patternC. taking an illiquid asset and converting it into a marketable securityD. selling financial services overseas as well as in the U.S.8. Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claims in capital markets becauseI. intermediaries are better diversified than most individualsII. intermediaries can exploit economies of scale in investing that individual investors cannotIII. intermediated investments usually offer higher rates of return than direct capital market claimsA. I onlyB. I and II onlyC. II and III onlyD. I, II and III9. Stone Harbor Products takes out a bank loan. It receives $100,000 and signs a promissory note to pay back the loan over 5 years.A. A new financial asset was created in this transaction.B. A financial asset was traded for a real asset in this transaction.C. A financial asset was destroyed in this transaction.D. A real asset was created in this transaction.10. In recent years the greatest dollar amount of securitization occurred for which type loan?A. Home mortgagesB. Credit card debtC. Automobile loansD. Equipment leasing11. An investment advisor has decided to purchase gold, real estate, stocks, and bonds in equal amounts. This decision reflects which part of the investment process?A. Asset allocationB. Investment analysisC. Portfolio analysisD. Security selection12. A dollar denominated deposit at a London bank is called _____.A. eurodollarsB. LIBORC. fed fundsD. banker's acceptance13. The German stock market is measured by which market index?A. FTSEB. Dow Jones 30C. DAXD. Nikkei14. Which one of the following is a true statement regarding the Dow Jones Industrial Average?A. It is a value-weighted average of 30 large industrial stocksB. It is a price-weighted average of 30 large industrial stocksC. It is a price-weighted average of 100 large stocks traded on the New York Stock ExchangeD. It is a value-weighted average of all stocks traded on the New York Stock Exchange15. Preferred stock is like long-term debt in that ___________.A. it gives the holder voting power regarding the firm's managementB. it promises to pay to its holder a fixed stream of income each yearC. the preferred dividend is a tax-deductible expense for the firmD. in the event of bankruptcy preferred stock has equal status with debt16. Three stocks have share prices of $12, $75, and $30 with total market values of $400 million, $350 million and $150 million respectively. If you were to construct a price-weighted index of the three stocks what would be the index value?A. 300B. 39C. 43D. 3017. In a ___________ index changes in the value of the stock with the greatest market value will move the index value the most everything else equal.A. value weighted indexB. equal weighted indexC. price weighted indexD. bond price index18. A benchmark index has three stocks priced at $23, $43, and $56. The number of outstanding shares for each is 350,000 shares, 405,000 shares, and 553,000 shares, respectively. If the market value weighted index was 970 yesterday and the prices changed to $23, $41, and $58, what is the new index value?A. 960B. 970C. 975D. 98519. Under firm commitment underwriting the ______ assumes the full risk that the shares cannot be sold to the public at the stipulated offering price.A. red herringB. issuing companyC. initial stockholderD. underwriter20. Barnegat Light sold 200,000 shares in an initial public offering. The underwriter's explicit fees were $90,000. The offering price for the shares was $35, but immediately upon issue, the share price jumped to $43. What is the best estimate of the total cost to Barnegat Light of the equity issue?A. $90,000B. $1,290,000C. $2,390,000D. $1,690,00021. Which one of the following statements about IPOs is not true?A. IPOs generally underperform in the short run.B. IPOs often provide very good initial returns to investors.C. IPOs generally provide superior long-term performance as compared to other stocks.D. Shares in IPOs are often primarily allocated to institutional investors.22. The NYSE recently acquired the ECN _______ and NASDAQ recently acquired the ECN ________.A. Archipelago; InstinetB. Instinet; ArchipelagoC. Island; InstinetD. LSE; Euronext23. Which one of the following is not an example of a brokered market?A. Residential real estate marketB. Market for large block security transactionsC. Primary market for securitiesD. NASDAQ24. An order to buy or sell a security at the current price is a ______________.A. limit orderB. market orderC. stop loss orderD. stop buy order25. If an investor places a _________ order the stock will be sold if its price falls to the stipulated level. If an investor places a __________ order the stock will be bought if its price rises above the stipulated level.A. stop-buy; stop-lossB. market; limitC. stop-loss; stop-buyD. limit; market26. On a given day a stock dealer maintains a bid price of $1000.50 for a bond and an ask price of $1003.25. The dealer made 10 trades which totaled 500 bonds traded that day. What was the dealer's gross trading profit for this security?A. $1,375B. $500C. $275D. $1,45027. The bulk of most initial public offerings (IPOs) of equity securities go to ___________.A. institutional investorsB. individual investorsC. the firm's current shareholdersD. day traders28. The _________ price is the price at which a dealer is willing to purchase a security.A. bidB. askC. clearingD. settlement29. The bid-ask spread exists because of _______________.A. market inefficienciesB. discontinuities in the marketsC. the need for dealers to cover expenses and make a profitD. lack of trading in thin markets30. Both the NYSE and Nasdaq have lost market share to ECNs in recent years. Part of Nasdaq's response to the growth of ECNs has been to _______.I. Purchase Instinet, a major ECNII. Enable automatic trade execution through its new Market CenterIII. Switch from stock ownership to mutual ownershipA. I onlyB. II and III onlyC. I and II onlyD. I, II and III31. You purchased XYZ stock at $50 per share. The stock is currently selling at $65. Your gains could be protected by placing a _________.A. limit-buy orderB. limit-sell orderC. market orderD. stop-loss order32. You find that the bid and ask prices for a stock are $10.25 and $10.30 respectively. If you purchase or sell the stock you must pay a flat commission of $25. If you buy 100 shares of the stock and immediately sell them, what is your total implied and actual transaction cost in dollars?A. $50B. $25C. $30D. $5533. Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If the initial margin is 60%, the amount you borrowed from the broker is _________.A. $20,000B. $12,000C. $8,000D. $15,00034. You short-sell 200 shares of Tuckerton Trading Co., now selling for $50 per share. What is your maximum possible gain ignoring transactions cost?A. $50B. $150C. $10,000D. unlimited35. You short-sell 200 shares of Rock Creek Fly Fishing Co., now selling for $50 per share. If you wish to limit your loss to $2,500, you should place a stop-buy order at ____.A. $37.50B. $62.50C. $56.25D. $59.7536. You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance margin is 30%. You will get a margin call if the stock drops below ________. (Assume the stock pays no dividends and ignore interest on the margin loan.)A. $26.55B. $35.71C. $28.95D. $30.7737. You purchased 250 shares of common stock on margin for $25 per share. The initial margin is 65% and the stock pays no dividend. Your rate of return would be __________ if you sell the stock at $32 per share. Ignore interest on margin.A. 35%B. 39%C. 43%D. 28%38. Which one of the following invests in a portfolio that is fixed for the life of the fund?A. Mutual fundB. Money market fundC. Managed investment companyD. Unit investment trust39. A __________ is a private investment pool open only to wealthy or institutional investors that is exempt from SEC regulation and can therefore pursue more speculative policies than mutual funds.A. commingled poolB. unit trustC. hedge fundD. money market fund40. A contingent deferred sales charge is commonly called a ____.A. front-end loadB. back-end loadC. 12b-1 chargeD. top end sales commission41. Assume that you have just purchased some shares in an investment company reporting $500 million in assets, $50 million in liabilities, and 50 million shares outstanding. What is the Net Asset Value (NA V) of these shares?A. $12.00B. $9.00C. $10.00D. $1.0042. The Vanguard 500 Index Fund tracks the performance of the S&P 500. To do so the fund buys shares in each S&P 500 company __________.A. in proportion to the market value weight of the firm's equity in the S&P500B. in proportion to the price weight of the stock in the S&P500C. by purchasing an equal number of shares of each stock in the S&P 500D. by purchasing an equal dollar amount of shares of each stock in the S&P50043.Investors who wish to liquidate their holdings in a closed-end fund may ___________________.A. sell their shares back to the fund at a discount if they wishB. sell their shares back to the fund at net asset valueC. sell their shares on the open marketD. sell their shares at a premium to net asset value if they wish44. __________ funds stand ready to redeem or issue shares at their net asset value.A. Closed-endB. IndexC. Open-endD. Hedge45. Consider a mutual fund with $300 million in assets at the start of the year, and 12 million shares outstanding. If the gross return on assets is 18% and the total expense ratio is 2% of the year end value, what is the rate of return on the fund?A. 15.64%B. 16.00%C. 17.25%D. 17.50%46. A/an _____ is an example of an exchange-traded fund.A. SPDR or spiderB. samuraiC. VanguardD. open-end fund47. The Wildwood Fund sells Class A shares with a front-end load of 5% and Class B Shares with a 12b-1 fees of 1% annually. If you plan to sell the fund after 4 years, are Class A or Class B shares the better choice? Assume a 10% annual return net of expenses.A. Class AB. Class BC. There is no difference.D. There is insufficient information given.48. Advantages of ETFs over mutual funds include all but which one of the following?A. ETFs trade continuously so investors can trade throughout the dayB. ETFs can be sold short or purchased on margin, unlike fund sharesC. ETF providers do not have to sell holdings to fund redemptionsD. ETF values can diverge from NA V49. A mutual fund has $50 million in assets at the beginning of the year and 1 million shares outstanding throughout the year. Throughout the year assets grow at 12%. The fund imposes a 12b-1 fee on all shares equal to 1%. The fee is imposed on year end asset values. If there are no distributions what is the end of year NA V for the fund?A. $50.00B. $55.44C. $56.12D. $54.5550. You pay $21,600 to the Laramie Fund which has a NA V of $18.00 per share at the beginning of the year. The fund deducted a front-end load of 4%. The securities in the fund increased in value by 10% during the year. The fund's expense ratio is 1.3% and is deducted from year end asset values. What is your rate of return on the fund if you sell your shares at the end of the year?A. 4.35%B. 4.23%C. 6.45%D. 5.63%。

中考英语投资理财的策略选择单选题40题

中考英语投资理财的策略选择单选题40题1.If you want to save money safely, you can choose to put it in a _____.A.stock marketB.bank depositC.venture capitalD.foreign exchange market答案：B。

bank deposit 是银行存款，存钱安全。

stock market 是股票市场，有风险。

venture capital 是风险投资。

foreign exchange market 是外汇市场，也有风险。

2.Which one is not a common investment method?A.Buying bondsB.Putting money in a piggy bankC.Investing in real estateD.Trading futures答案：B。

putting money in a piggy bank 只是存钱不是投资方法。

buying bonds 买债券是投资方法。

investing in real estate 投资房地产是投资方法。

trading futures 交易期货是投资方法。

3.When you invest in stocks, you are actually buying a part of a _____.panyB.bankernmentD.charity organization答案：A。

invest in stocks 买股票是买公司的一部分。

bank 银行。

government 政府。

charity organization 慈善组织。

4.Which of the following is a low-risk investment?A.Speculating in goldB.Investing in startupsC.Buying government bondsD.Playing the lottery答案：C。

中考英语投资理财的策略选择练习题30题带答案

中考英语投资理财的策略选择练习题30题带答案1. If you want to keep your money safe and get a little interest, you can choose ____.A. stockB. bondC. savingAnswer: C.解析：“saving”在这里指储蓄。

储蓄是一种将钱存入银行等金融机构以获取一定利息并保证资金安全的理财方式。

“stock”是股票，股票投资风险相对较高。

“bond”是债券，债券收益和风险介于储蓄和股票之间。

2. ____ is a high - risk investment.A. SavingB. StockC. BondAnswer: B.解析：“stock”股票是一种高风险投资。

股票价格波动较大，投资者可能获得高额收益，也可能遭受较大损失。

“saving”储蓄风险很低，主要目的是资金的安全存储和获取少量利息。

“bond”债券风险低于股票。

3. My uncle wants to invest some money. He doesn't like high - risk things. He should consider ____.A. stocksB. bondsC. savings解析：因为这个人不喜欢高风险的事物，“savings”储蓄是比较合适的选择，储蓄风险低。

“stocks”股票风险高，“bonds”债券虽然风险低于股票但还是比储蓄风险高一些。

4. Which of the following can bring the highest return but also has the highest risk?A. Saving accountB. BondC. StockAnswer: C.解析：“Stock”股票通常能带来最高的回报，但同时也伴随着最高的风险。

“Saving account”储蓄账户收益比较稳定但回报率较低。

投资学第7版Test-Bank答案

'Multiple Choice Questions1. The current yield on a bond is equal to ________.A) annual interest divided by the current market priceB) the yield to maturityC) annual interest divided by the par valueD) the internal rate of return￥E) none of the aboveAnswer: A Difficulty: EasyRationale: A is current yield and is quoted as such in the financial press.2. If a 7% coupon bond is trading for $, it has a current yield of ____________percent.A)B)￥C)D)E)Answer: E Difficulty: EasyRationale: 70/975 = .3. If a 6% coupon bond is trading for $, it has a current yield of ____________percent.|A)B)C)D)E)Answer: B Difficulty: EasyRationale: 60/950 = .\4. If an 8% coupon bond is trading for $, it has a current yield of ____________percent.A)B)C)D)E):Answer: A Difficulty: EasyRationale: 80/1025 = .5. If a % coupon bond is trading for $, it has a current yield of ____________percent.A)B)C)D))E)Answer: C Difficulty: EasyRationale: 75/1050 = .6. A coupon bond pays annual interest, has a par value of $1,000, maturesin 4 years, has a coupon rate of 10%, and has a yield to maturity of 12%.The current yield on this bond is ___________.A) %B) %{C) %D) %E) none of the aboveAnswer: A Difficulty: ModerateRationale: FV = 1000, n = 4, PMT = 100, i = 12, PV= ; $100 / $ = %.7. A coupon bond pays annual interest, has a par value of $1,000, maturesin 12 years, has a coupon rate of 11%, and has a yield to maturity of 12%.The current yield on this bond is ___________.(A) %B) %C) %D) %E) none of the aboveAnswer: D Difficulty: ModerateRationale: FV = 1000, n = 12, PMT = 110, i = 12, PV= ; $100 / $ = %.<8. Of the following four investments, ________ is considered the safest.A) commercial paperB) corporate bondsC) U. S. Agency issuesD) Treasury bondsE) Treasury bills：Answer: E Difficulty: EasyRationale: Only Treasury issues are insured by the U. S. government; the shorter-term the instrument, the safer the instrument.9. To earn a high rating from the bond rating agencies, a firm should haveA) a low times interest earned ratioB) a low debt to equity ratioC) a high quick ratioD) B and C；E) A and CAnswer: D Difficulty: EasyRationale: High values for the times interest and quick ratios and a low debt to equity ratio are desirable indicators of safety.10. At issue, coupon bonds typically sell ________.A) above par valueB) below par%C) at or near par valueD) at a value unrelated to parE) none of the aboveAnswer: C Difficulty: EasyRationale: If the investment banker has appraised the market and the quality of the bond correctly, the bond will sell at or near par (unless interest rates have changed very dramatically and very quickly around the time of issuance).11. Accrued interest、A) is quoted in the bond price in the financial press.B) must be paid by the buyer of the bond and remitted to the seller ofthe bond.C) must be paid to the broker for the inconvenience of selling bondsbetween maturity dates.D) A and B.E) A and C.Answer: B Difficulty: ModerateRationale: Accrued interest must be paid by the buyer, but is not included in the quotations page price.￥12. The invoice price of a bond that a buyer would pay is equal toA) the asked price plus accrued interest.B) the asked price less accrued interest.C) the bid price plus accrued interest.D) the bid price less accrued interest.E) the bid price.'Answer: A Difficulty: EasyRationale: The buyer of a bond will buy at the asked price and will also be invoiced for any accrued interest due to the seller.13. An 8% coupon U. S. Treasury note pays interest on May 30 and November 30and is traded for settlement on August 15. The accrued interest on the $100,000 face value of this note is _________.A) $B) $C) $D) $1,;E) none of the aboveAnswer: D Difficulty: ModerateRationale: 76/183($4,000) = $1,. Approximation: .08/12*100,000= per month.month * months = 14. A coupon bond is reported as having an ask price of 113% of the $1,000 par value in the Wall Street Journal. If the last interest payment was made two months ago and the coupon rate is 12%, the invoice price of the bond will be ____________.A) $1,100B) $1,110C) $1,150D) $1,160…E) none of the aboveAnswer: C Difficulty: ModerateRationale: $1,130 + $20 (accrued interest) = $1,150.15. The bonds of Ford Motor Company have received a rating of "D" by Moody's.The "D" rating indicatesA) the bonds are insuredB) the bonds are junk bonds）C) the bonds are referred to as "high yield" bondsD) A and BE) B and CAnswer: E Difficulty: EasyRationale: D ratings are risky bonds, often called junk bonds (or high yield bonds by those marketing such bonds).16. The bond market【A) can be quite "thin".B) primarily consists of a network of bond dealers in the over the countermarket.C) consists of many investors on any given day.D) A and B.E) B and C.Answer: D Difficulty: EasyRationale: The bond market, unlike the stock market, can be a very thinly traded market. In addition, most bonds are traded by dealers.￥17. Ceteris paribus, the price and yield on a bond areA) positively related.B) negatively related.C) sometimes positively and sometimes negatively related.E) not related.E) indefinitely related.、Answer: B Difficulty: EasyRationale: Bond prices and yields are inversely related.18. The ______ is a measure of the average rate of return an investor willearn if the investor buys the bond now and holds until maturity.A) current yieldB) dividend yieldC) P/E ratioD) yield to maturity—E) discount yieldAnswer: D Difficulty: EasyRationale: The current yield is the annual interest as a percent of current market price; the other choices do not apply to bonds.19. The _________ gives the number of shares for which each convertible bondcan be exchanged.A) conversion ratioB) current ratio…C) P/E ratioD) conversion premiumE) convertible floorAnswer: A Difficulty: EasyRationale: The conversion premium is the amount for which the bond sells above conversion value; the price of bond as a straight bond provides the floor.The other terms are not specifically relevant to convertible bonds.20. A coupon bond is a bond that _________.|A) pays interest on a regular basis (typically every six months)B) does not pay interest on a regular basis but pays a lump sum at maturityC) can always be converted into a specific number of shares of common stockin the issuing companyD) always sells at parE) none of the aboveAnswer: A Difficulty: EasyRationale: A coupon bond will pay the coupon rate of interest on a semiannual basis unless the firm defaults on the bond. Convertible bonds are specific types of bonds.·21. A ___________ bond is a bond where the bondholder has the right to cashin the bond before maturity at a specified price after a specific date.A) callableB) couponC) putD) TreasuryE) zero-coupon:Answer: C Difficulty: EasyRationale: Any bond may be redeemed prior to maturity, but all bonds other than put bonds are redeemed at a price determined by the prevailing interest rates.22. Callable bondsA) are called when interest rates decline appreciably.B) have a call price that declines as time passes.C) are called when interest rates increase appreciably.D) A and B.—E) B and C.Answer: D Difficulty: EasyRationale: Callable bonds often are refunded (called) when interest rates decline appreciably. The call price of the bond (approximately par and one year's coupon payment) declines to par as time passes and maturity is reached.23. A Treasury bond due in one year has a yield of %; a Treasury bond due in5 years has a yield of %. A bond issued by Ford Motor Company due in 5years has a yield of %; a bond issued by Shell Oil due in one year hasa yield of %. The default risk premiums on the bonds issued by Shell andFord, respectively, areA) % and %B) % and %{C) % and %D) % and %E) none of the aboveAnswer: D Difficulty: ModerateRationale: Shell: % - % = .8%; Ford: % - % = %.24. A Treasury bond due in one year has a yield of %; a Treasury bond due in5 years has a yield of %. A bond issued by Lucent Technologies due in5 years has a yield of %; a bond issued by Mobil due in one year has ayield of %. The default risk premiums on the bonds issued by Mobil and Lucent Technologies, respectively, are:》A) % and %B) % and .7%C) % and %D) % and %E) none of the aboveAnswer: A Difficulty: ModerateRationale: Mobil: % - % = %; Lucent Technologies: % - % = %.、25. A Treasury bond due in one year has a yield of %; a Treasury bond due in5 years has a yield of %. A bond issued by Xerox due in 5 years has ayield of %; a bond issued by Exxon due in one year has a yield of %. The default risk premiums on the bonds issued by Exxon and Xerox, respectively, areA) % and %B) % and .7%C) % and %D) % and %E) none of the above，Answer: A Difficulty: ModerateRationale: Exxon: % - % = %; Xerox: 7. 9% - % = %.26. Floating-rate bonds are designed to ___________ while convertible bondsare designed to __________.A) minimize the holders' interest rate risk; give the investor the abilityto share in the price appreciation of the company's stockB) maximize the holders' interest rate risk; give the investor the abilityto share in the price appreciation of the company's stockC) minimize the holders' interest rate risk; give the investor the abilityto benefit from interest rate changesD) maximize the holders' interest rate risk; give investor the abilityto share in the profits of the issuing company￥E) none of the aboveAnswer: A Difficulty: ModerateRationale: Floating rate bonds allow the investor to earn a rate of interest income tied to current interest rates, thus negating one of the major disadvantages of fixed income investments. Convertible bonds allow the investor to benefit from the appreciation of the stock price, either by converting to stock or holding the bond, which will increase in price as the stock price increases.27. A coupon bond that pays interest annually is selling at par value of $1,000,matures in 5 years, and has a coupon rate of 9%. The yield to maturity on this bond is:A) %B) %-C) %D) %E) none of the aboveAnswer: C Difficulty: EasyRationale: When a bond sells at par value, the coupon rate is equal to the yield to maturity.28. A coupon bond that pays interest annually has a par value of $1,000, maturesin 5 years, and has a yield to maturity of 10%. The intrinsic value of the bond today will be ______ if the coupon rate is 7%.#A) $B) $C) $1,D) $E) $1,Answer: D Difficulty: ModerateRationale: FV = 1000, PMT = 70, n = 5, i = 10, PV = .！29. A coupon bond that pays interest annually, has a par value of $1,000,matures in 5 years, and has a yield to maturity of 10%. The intrinsic value of the bond today will be _________if the coupon rate is 12%.A) $B) $C) $1,D) $1,E) none of the above`Answer: C Difficulty: ModerateRationale: FV = 1000, PMT = 120, n = 5, i = 10, PV =30. A coupon bond that pays interest semi-annually has a par value of $1,000,matures in 5 years, and has a yield to maturity of 10%. The intrinsic value of the bond today will be __________if the coupon rate is 8%.A) $B) $C) $1,D) $1,%E) none of the aboveAnswer: A Difficulty: ModerateRationale: FV = 1000, PMT = 40, n = 10, i = 5, PV =31. A coupon bond that pays interest semi-annually has a par value of $1,000,matures in 5 years, and has a yield to maturity of 10%. The intrinsic value of the bond today will be ________if the coupon rate is 12%.A) $B) $(C) $1,D) $1,E) none of the aboveAnswer: D Difficulty: ModerateRationale: FV = 1000, PMT = 60, n = 10, i = 5, PV =32. A coupon bond that pays interest of $100 annually has a par value of $1,000,matures in 5 years, and is selling today at a $72 discount from par value.The yield to maturity on this bond is __________.?A) %B) %C) %D) %E) none of the aboveAnswer: C Difficulty: ModerateRationale: FV = 1000, PMT = 100, n = 5, PV = -928, i = %，33. You purchased an annual interest coupon bond one year ago that now has6 years remaining until maturity. The coupon rate of interest was 10%and par value was $1,000. At the time you purchased the bond, the yield to maturity was 8%. The amount you paid for this bond one year ago wasA) $1,.B) $1,.C) $1,.D) $E) $1,.、Answer: E Difficulty: ModerateRationale: FV = 1000, PMT = 100, n = 7, i = 8, PV =34. You purchased an annual interest coupon bond one year ago that had 6 yearsremaining to maturity at that time. The coupon interest rate was 10% and the par value was $1,000. At the time you purchased the bond, the yield to maturity was 8%. If you sold the bond after receiving the first interest payment and the yield to maturity continued to be 8%, your annual total rate of return on holding the bond for that year would have been _________.A) %B) %C) %D) %·E) none of the aboveAnswer: C Difficulty: DifficultRationale: FV = 1000, PMT = 100, n = 6, i = 8, PV = ; FV = 1000, PMT = 100, n = 5, i = 8, PV = ; HPR = - + 100) / = 8%35. Consider two bonds, A and B. Both bonds presently are selling at theirpar value of $1,000. Each pays interest of $120 annually. Bond A will mature in 5 years while bond B will mature in 6 years. If the yields to maturity on the two bonds change from 12% to 10%, ____________.A) both bonds will increase in value, but bond A will increase more thanbond BB) both bonds will increase in value, but bond B will increase more thanbond A【C) both bonds will decrease in value, but bond A will decrease more thanbond BD) both bonds will decrease in value, but bond B will decrease more thanbond AE) none of the aboveAnswer: B Difficulty: ModerateRationale: The longer the maturity, the greater the price change when interest rates change.36. A zero-coupon bond has a yield to maturity of 9% and a par value of $1,000.If the bond matures in 8 years, the bond should sell for a price of _______ today.$A)B) $C) $D) $E) none of the aboveAnswer: B Difficulty: ModerateRationale: $1,000/8 = $￥37. You have just purchased a 10-year zero-coupon bond with a yield to maturityof 10% and a par value of $1,000. What would your rate of return at the end of the year be if you sell the bond Assume the yield to maturity on the bond is 11% at the time you sell.A) %B) %C) %D) %E) none of the above~Answer: D Difficulty: ModerateRationale: $1,000/10 = $; $1,000/9 = $; ($ - $/$ = %.38. A Treasury bill with a par value of $100,000 due one month from now isselling today for $99,010. The effective annual yield is __________.A) %B) %C) %D) %-E) none of the aboveAnswer: D Difficulty: ModerateRationale: $990/$99,010 = ; 12 - = %.39. A Treasury bill with a par value of $100,000 due two months from now isselling today for $98,039, with an effective annual yield of _________.A) %B) %》C) %D) %E) none of the aboveAnswer: C Difficulty: ModerateRationale: $1,961/$98,039 = ; 6 - 1 = %.40. A Treasury bill with a par value of $100,000 due three months from nowis selling today for $97,087, with an effective annual yield of _________. ]A) %B) %C) %D) %E) none of the aboveAnswer: B Difficulty: ModerateRationale: $2,913/$97,087 = ; 4 - = %.,41. A coupon bond pays interest semi-annually, matures in 5 years, has a parvalue of $1,000 and a coupon rate of 12%, and an effective annual yield to maturity of %. The price the bond should sell for today is ________.A) $B) $C) $1,D) $1,E) none of the above：Answer: D Difficulty: ModerateRationale: 1/2 - 1 = 5%, N=10, I=5%, PMT=60, FV=1000, PV=1,.42. A convertible bond has a par value of $1,000 and a current market priceof $850. The current price of the issuing firm's stock is $29 and the conversion ratio is 30 shares. The bond's market conversion value is ______.A) $729B) $810C) $870D) $1,000&E) none of the aboveAnswer: C Difficulty: EasyRationale: 30 shares X $29/share = $870.43. A convertible bond has a par value of $1,000 and a current market valueof $850. The current price of the issuing firm's stock is $27 and theconversion ratio is 30 shares. The bond's conversion premium is _________.A) $40B) $150；C) $190D) $200E) none of the aboveAnswer: A Difficulty: ModerateRationale: $850 - $810 = $40.Use the following to answer questions 44-47:?Consider the following $1,000 par value zero-coupon bonds:44. The yield to maturity on bond A is ____________.A) 10%B) 11%$C) 12%D) 14%E) none of the aboveAnswer: A Difficulty: ModerateRationale: ($1,000 - $/$ = 10%.45. The yield to maturity on bond B is _________.,A) 10%B) 11%C) 12%D) 14%E) none of the aboveAnswer: B Difficulty: ModerateRationale: ($1,000 - $/$ = ; 1/2 - = 11%.{46. The yield to maturity on bond C is ____________.A) 10%B) 11%C) 12%D) 14%E) none of the above、Answer: C Difficulty: ModerateRationale: ($1,000 - $/$ = ; 1/3 - = 12%.47. The yield to maturity on bond D is _______.A) 10%B) 11%C) 12%D) 14%%E) none of the aboveAnswer: C Difficulty: ModerateRationale: ($1,000 - $/$ = ; 1/4 - = 12%.48. A 10% coupon bond, annual payments, 10 years to maturity is callable in3 years at a call price of $1,100. If the bond is selling today for $975,the yield to call is _________.A) %B) %~C) %D) %E) none of the aboveAnswer: D Difficulty: ModerateRationale: FV = 1100, n = 3, PMT = 100, PV = -975, i = %.49. A 12% coupon bond, semiannual payments, is callable in 5 years. The callprice is $1,120; if the bond is selling today for $1,110, what is the yield to call》A) %.B) %.C) %.D) %.E) none of the above.Answer: C Difficulty: ModerateRationale: YTC = FV = 1120, n = 10, PMT = 60, PV = -1,110m i = %, *2=—50. A 10% coupon, annual payments, bond maturing in 10 years, is expected tomake all coupon payments, but to pay only 50% of par value at maturity.What is the expected yield on this bond if the bond is purchased for $975A) %.B) %.C) %.D) %.E) none of the above.&Answer: B Difficulty: ModerateRationale: FV = 500, PMT = 100, n = 10, PV = -975, i = %51. You purchased an annual interest coupon bond one year ago with 6 yearsremaining to maturity at the time of purchase. The coupon interest rate is 10% and par value is $1,000. At the time you purchased the bond, the yield to maturity was 8%. If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 7%, your annual total rate of return on holding the bond for that year would have been _________.A) %B) %C) %D) %,E) none of the aboveAnswer: D Difficulty: DifficultRationale: FV = 1000, PMT = 100, n = 6, i = 8, PV = ; FV = 1000, PMT = 100, n = 5, i = 7, PV = ; HPR = - + 100) / = %.52. The ________is used to calculate the present value of a bond.A) nominal yieldB) current yield*C) yield to maturityD) yield to callE) none of the aboveAnswer: C Difficulty: EasyRationale: Yield to maturity is the discount rate used in the bond valuationformula. For callable bonds, yield to call is sometimes the moreappropriate calculation for the investor (if interest rates are expected to decrease).53. The yield to maturity on a bond is ________.…A) below the coupon rate when the bond sells at a discount, and equal tothe coupon rate when the bond sells at a premium.B) the discount rate that will set the present value of the payments equalto the bond price.C) based on the assumption that any payments received are reinvested atthe coupon rate.D) none of the above.E) A, B, and C.Answer: B Difficulty: EasyRationale: The reverse of A is true; for C to be true payments must be reinvested at the yield to maturity.。

投资学第7版Test Bank答案

Multiple Choice Questions1. The term structure of interest rates is:A) The relationship between the rates of interest on all securities.B) The relationship between the interest rate on a security and its time to maturity.C) The relationship between the yield on a bond and its default rate.D) All of the above.E) None of the above.Answer: B Difficulty: EasyRationale: The term structure of interest rates is the relationship between two variables, years and yield to maturity (holding all else constant).2. The yield curve shows at any point in time:A) The relationship between the yield on a bond and the duration of the bond.B) The relationship between the coupon rate on a bond and time to maturity of thebond.C) The relationship between yield on a bond and the time to maturity on the bond.D) All of the above.E) None of the above.Answer: C Difficulty: Easy3. An inverted yield curve implies that:A) Long-term interest rates are lower than short-term interest rates.B) Long-term interest rates are higher than short-term interest rates.C) Long-term interest rates are the same as short-term interest rates.D) Intermediate term interest rates are higher than either short- or long-term interestrates.E) none of the above.Answer: A Difficulty: EasyRationale: The inverted, or downward sloping, yield curve is one in which short-term rates are higher than long-term rates. The inverted yield curve has been observedfrequently, although not as frequently as the upward sloping, or normal, yield curve.4. An upward sloping yield curve is a(n) _______ yield curve.A) normal.B) humped.C) inverted.D) flat.E) none of the above.Answer: A Difficulty: EasyRationale: The upward sloping yield curve is referred to as the normal yield curve, probably because, historically, the upward sloping yield curve is the shape that has been observed most frequently.5. According to the expectations hypothesis, a normal yield curve implies thatA) interest rates are expected to remain stable in the future.B) interest rates are expected to decline in the future.C) interest rates are expected to increase in the future.D) interest rates are expected to decline first, then increase.E) interest rates are expected to increase first, then decrease.Answer: C Difficulty: EasyRationale: An upward sloping yield curve is based on the expectation that short-term interest rates will increase.6. Which of the following is not proposed as an explanation for the term structure ofinterest ratesA) The expectations theory.B) The liquidity preference theory.C) The market segmentation theory.D) Modern portfolio theory.E) A, B, and C.Answer: D Difficulty: EasyRationale: A, B, and C are all theories that have been proposed to explain the term structure.7. The expectations theory of the term structure of interest rates states thatA) forward rates are determined by investors' expectations of future interest rates.B) forward rates exceed the expected future interest rates.C) yields on long- and short-maturity bonds are determined by the supply and demandfor the securities.D) all of the above.E) none of the above.Answer: A Difficulty: EasyRationale: The forward rate equals the market consensus expectation of future short interest rates.8. Which of the following theories state that the shape of the yield curve is essentiallydetermined by the supply and demands for long-and short-maturity bondsA) Liquidity preference theory.B) Expectations theory.C) Market segmentation theory.D) All of the above.E) None of the above.Answer: C Difficulty: EasyRationale: Market segmentation theory states that the markets for different maturities are separate markets, and that interest rates at the different maturities are determined by the intersection of the respective supply and demand curves.9. According to the "liquidity preference" theory of the term structure of interest rates, theyield curve usually should be:A) inverted.B) normal.C) upward slopingD) A and B.E) B and C.Answer: E Difficulty: EasyRationale: According to the liquidity preference theory, investors would prefer to be liquid rather than illiquid. In order to accept a more illiquid investment, investors require a liquidity premium and the normal, or upward sloping, yield curve results.Use the following to answer questions 10-13:Suppose that all investors expect that interest rates for the 4 years will be as follows:10. What is the price of 3-year zero coupon bond with a par value of $1,000A) $B) $C) $D) $E) none of the aboveAnswer: B Difficulty: ModerateRationale: $1,000 / = $11. If you have just purchased a 4-year zero coupon bond, what would be the expected rateof return on your investment in the first year if the implied forward rates stay the same (Par value of the bond = $1,000)A) 5%B) 7%C) 9%D) 10%E) none of the aboveAnswer: A Difficulty: ModerateRationale: The forward interest rate given for the first year of the investment is given as 5% (see table above).12. What is the price of a 2-year maturity bond with a 10% coupon rate paid annually (Parvalue = $1,000)A) $1,092B) $1,054C) $1,000D) $1,073E) none of the aboveAnswer: D Difficulty: ModerateRationale: []1/2 - 1 = 6%; FV = 1000, n = 2, PMT = 100, i = 6, PV = $1,13. What is the yield to maturity of a 3-year zero coupon bondA) %B) %C) %D) %E) none of the aboveAnswer: C Difficulty: ModerateRationale: []1/3 - 1 = .Use the following to answer questions 14-16:The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000.14. What is, according to the expectations theory, the expected forward rate in the thirdyearA) %B) %C) %D) %E) none of the aboveAnswer: C Difficulty: ModerateRationale: / - 1 = 9%15. What is the yield to maturity on a 3-year zero coupon bondA) %B) %C) %D) %E) none of the aboveAnswer: C Difficulty: ModerateRationale: (1000 / 1/3 -1 = %16. What is the price of a 4-year maturity bond with a 12% coupon rate paid annually (Parvalue = $1,000)A) $B) $1,C) $1,D) $1,E) none of the aboveAnswer: D Difficulty: DifficultRationale: (1000 / 1/4 -1 = %; FV = 1000, PMT = 120, n = 4, i = , PV = $1,17. The market segmentation theory of the term structure of interest ratesA) theoretically can explain all shapes of yield curves.B) definitely holds in the "real world".C) assumes that markets for different maturities are separate markets.D) A and B.E) A and C.Answer: E Difficulty: EasyRationale: Although this theory is quite tidy theoretically, both investors and borrows will depart from their "preferred maturity habitats" if yields on alternative maturities are attractive enough.18. An upward sloping yield curveA) may be an indication that interest rates are expected to increase.B) may incorporate a liquidity premium.C) may reflect the confounding of the liquidity premium with interest rateexpectations.D) all of the above.E) none of the above.Answer: D Difficulty: EasyRationale: One of the problems of the most commonly used explanation of termstructure, the expectations hypothesis, is that it is difficult to separate out the liquidity premium from interest rate expectations.19. The "break-even" interest rate for year n that equates the return on an n-periodzero-coupon bond to that of an n-1-period zero-coupon bond rolled over into a one-year bond in year n is defined asA) the forward rate.B) the short rate.C) the yield to maturity.D) the discount rate.E) None of the above.Answer: A Difficulty: EasyRationale: The forward rate for year n, fn, is the "break-even" interest rate for year n that equates the return on an n-period zero- coupon bond to that of an n-1-periodzero-coupon bond rolled over into a one-year bond in year n.20. When computing yield to maturity, the implicit reinvestment assumption is that theinterest payments are reinvested at the:A) Coupon rate.B) Current yield.C) Yield to maturity at the time of the investment.D) Prevailing yield to maturity at the time interest payments are received.E) The average yield to maturity throughout the investment period.Answer: C Difficulty: ModerateRationale: In order to earn the yield to maturity quoted at the time of the investment, coupons must be reinvested at that rate.21. Which one of the following statements is trueA) The expectations hypothesis indicates a flat yield curve if anticipated futureshort-term rates exceed the current short-term rate.B) The basic conclusion of the expectations hypothesis is that the long-term rate isequal to the anticipated long-term rate.C) The liquidity preference hypothesis indicates that, all other things being equal,longer maturities will have lower yields.D) The segmentation hypothesis contends that borrows and lenders are constrained toparticular segments of the yield curve.E) None of the above.Answer: D Difficulty: ModerateRationale: A flat yield curve indicates expectations of existing rates. Expectations hypothesis states that the forward rate equals the market consensus of expectations of future short interest rates. The reverse of C is true.22. The concepts of spot and forward rates are most closely associated with which one ofthe following explanations of the term structure of interest rates.A) Segmented Market theoryB) Expectations HypothesisC) Preferred Habitat HypothesisD) Liquidity Premium theoryE) None of the aboveAnswer: B Difficulty: ModerateRationale: Only the expectations hypothesis is based on spot and forward rates. A andC assume separate markets for different maturities; liquidity premium assumes higheryields for longer maturities.Use the following to answer question 23:23. Given the bond described above, if interest were paid semi-annually (rather thanannually), and the bond continued to be priced at $850, the resulting effective annual yield to maturity would be:A) Less than 12%B) More than 12%C) 12%D) Cannot be determinedE) None of the aboveAnswer: B Difficulty: ModerateRationale: FV = 1000, PV = -850, PMT = 50, n = 40, i = (semi-annual); 2 - 1 = %.24. Interest rates might declineA) because real interest rates are expected to decline.B) because the inflation rate is expected to decline.C) because nominal interest rates are expected to increase.D) A and B.E) B and C.Answer: D Difficulty: EasyRationale: The nominal rate is comprised of the real interest rate plus the expectedinflation rate.25. Forward rates ____________ future short rates because ____________.A) are equal to; they are both extracted from yields to maturity.B) are equal to; they are perfect forecasts.C) differ from; they are imperfect forecasts.D) differ from; forward rates are estimated from dealer quotes while future short ratesare extracted from yields to maturity.E) are equal to; although they are estimated from different sources they both are usedby traders to make purchase decisions.Answer: C Difficulty: EasyRationale: Forward rates are the estimates of future short rates extracted from yields to maturity but they are not perfect forecasts because the future cannot be predicted with certainty; therefore they will usually differ.26. The pure yield curve can be estimatedA) by using zero-coupon bonds.B) by using coupon bonds if each coupon is treated as a separate "zero."C) by using corporate bonds with different risk ratings.D) by estimating liquidity premiums for different maturities.E) A and B.Answer: E Difficulty: ModerateRationale: The pure yield curve is calculated using zero coupon bonds, but coupon bonds may be used if each coupon is treated as a separate "zero."27. The on the run yield curve isA) a plot of yield as a function of maturity for zero-coupon bonds.B) a plot of yield as a function of maturity for recently issued coupon bonds trading ator near par.C) a plot of yield as a function of maturity for corporate bonds with different riskratings.D) a plot of liquidity premiums for different maturities.E) A and B.Answer: B Difficulty: Moderate28. The market segmentation and preferred habitat theories of term structureA) are identical.B) vary in that market segmentation is rarely accepted today.C) vary in that market segmentation maintains that borrowers and lenders will notdepart from their preferred maturities and preferred habitat maintains that marketparticipants will depart from preferred maturities if yields on other maturities areattractive enough.D) A and B.E) B and C.Answer: E Difficulty: ModerateRationale: Borrowers and lenders will depart from their preferred maturity habitats if yields are attractive enough; thus, the market segmentation hypothesis is no longerreadily accepted.29. The yield curveA) is a graphical depiction of term structure of interest rates.B) is usually depicted for U. S. Treasuries in order to hold risk constant acrossmaturities and yields.C) is usually depicted for corporate bonds of different ratings.D) A and B.E) A and C.Answer: D Difficulty: EasyRationale: The yield curve (yields vs. maturities, all else equal) is depicted for U. S.Treasuries more frequently than for corporate bonds, as the risk is constant acrossmaturities for Treasuries.Use the following to answer questions 30-32:30. What should the purchase price of a 2-year zero coupon bond be if it is purchased at thebeginning of year 2 and has face value of $1,000A) $B) $C) $D) $E) $Answer: A Difficulty: DifficultRationale: $1,000 / [] = $31. What would the yield to maturity be on a four-year zero coupon bond purchased todayA) %B) %C) %D) %E) none of the above.Answer: C Difficulty: ModerateRationale: [ ]1/4 - 1 = %32. Calculate the price at the beginning of year 1 of a 10% annual coupon bond with facevalue $1,000 and 5 years to maturity.A) $1,105B) $1,132C) $1,179D) $1,150E) $1,119Answer: B Difficulty: DifficultRationale: i = [ ]1/5 - 1 = %; FV = 1000, PMT = 100, n = 5, i = , PV = $1,33. Given the yield on a 3 year zero-coupon bond is % and forward rates of % in year 1and % in year 2, what must be the forward rate in year 3A) %B) %C) %D) %E) none of the above.Answer: B Difficulty: ModerateRationale: f3 = 3 / [ ] - 1 = %34. An inverted yield curve is oneA) with a hump in the middle.B) constructed by using convertible bonds.C) that is relatively flat.D) that plots the inverse relationship between bond prices and bond yields.E) that slopes downward.Answer: E Difficulty: EasyRationale: An inverted yield curve occurs when short-term rates are higher thanlong-term rates.35. Investors can use publicly available financial date to determine which of the followingI)the shape of the yield curveII)future short-term ratesIII)the direction the Dow indexes are headingIV)the actions to be taken by the Federal ReserveA) I and IIB) I and IIIC) I, II, and IIID) I, III, and IVE) I, II, III, and IVAnswer: A Difficulty: ModerateRationale: Only the shape of the yield curve and future inferred rates can be determined.The movement of the Dow Indexes and Federal Reserve policy are influenced by term structure but are determined by many other variables also.36. Which of the following combinations will result in a sharply increasing yield curveA) increasing expected short rates and increasing liquidity premiumsB) decreasing expected short rates and increasing liquidity premiumsC) increasing expected short rates and decreasing liquidity premiumsD) increasing expected short rates and constant liquidity premiumsE) constant expected short rates and increasing liquidity premiumsAnswer: A Difficulty: ModerateRationale: Both of the forces will act to increase the slope of the yield curve.37. The yield curve is a component ofA) the Dow Jones Industrial Average.B) the consumer price index.C) the index of leading economic indicators.D) the producer price index.E) the inflation index.Answer: C Difficulty: EasyRationale: Since the yield curve is often used to forecast the business cycle, it is used as one of the leading economic indicators.38. The most recently issued Treasury securities are calledA) on the run.B) off the run.C) on the market.D) off the market.E) none of the above.Answer: A Difficulty: EasyUse the following to answer questions 39-42:Suppose that all investors expect that interest rates for the 4 years will be as follows:39. What is the price of 3-year zero coupon bond with a par value of $1,000A) $B) $C) $D) $E) none of the aboveAnswer: A Difficulty: ModerateRationale: $1,000 / = $40. If you have just purchased a 4-year zero coupon bond, what would be the expected rateof return on your investment in the first year if the implied forward rates stay the same (Par value of the bond = $1,000)A) 5%B) 3%C) 9%D) 10%E) none of the aboveAnswer: B Difficulty: ModerateRationale: The forward interest rate given for the first year of the investment is given as 3% (see table above).41. What is the price of a 2-year maturity bond with a 5% coupon rate paid annually (Parvalue = $1,000)A) $1,B) $1,C) $1,D) $1,E) none of the aboveAnswer: C Difficulty: ModerateRationale: []1/2 - 1 = %; FV = 1000, n = 2, PMT = 50, i = , PV = $1,42. What is the yield to maturity of a 3-year zero coupon bondA) %B) %C) %D) 4%E) none of the aboveAnswer: D Difficulty: ModerateRationale: []1/3 - 1 = 4%.Use the following to answer questions 43-46:The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000.43. What is, according to the expectations theory, the expected forward rate in the thirdyearA)B) %C) %D) %E) none of the aboveAnswer: B Difficulty: ModerateRationale: / - 1 = %44. What is the yield to maturity on a 3-year zero coupon bondA) %B) %C) %D) %E) none of the aboveAnswer: D Difficulty: ModerateRationale: (1000 / 1/3 -1 = %45. What is the price of a 4-year maturity bond with a 10% coupon rate paid annually (Parvalue = $1,000)A) $B) $1,C) $1,D) $1,E) none of the aboveAnswer: C Difficulty: DifficultRationale: (1000 / 1/4 -1 = %; FV = 1000, PMT = 100, n = 4, i = , PV = $1,46. You have purchased a 4-year maturity bond with a 9% coupon rate paid annually. Thebond has a par value of $1,000. What would the price of the bond be one year from now if the implied forward rates stay the sameA) $B) $1,C) $1,D) $1,E) none of the aboveAnswer: A Difficulty: DifficultRationale: / ]1/3 - = %; FV = 1000, PMT = 90, n = 3, i = , PV = $Use the following to answer question 47:47. Given the bond described above, if interest were paid semi-annually (rather thanannually), and the bond continued to be priced at $, the resulting effective annual yield to maturity would be:A) Less than 10%B) More than 10%C) 10%D) Cannot be determinedE) None of the aboveAnswer: B Difficulty: ModerateRationale: FV = 1000, PV = , PMT = 45, n = 36, i = (semi-annual); 2 - 1 = %.Use the following to answer questions 48-50:48. What should the purchase price of a 2-year zero coupon bond be if it is purchased at thebeginning of year 2 and has face value of $1,000A) $B) $C) $D) $E) $Answer: D Difficulty: DifficultRationale: $1,000 / [] = $49. What would the yield to maturity be on a four-year zero coupon bond purchased todayA) %B) %C) %D) %E) none of the above.Answer: A Difficulty: ModerateRationale: [ ]1/4 - 1 = %50. Calculate the price at the beginning of year 1 of an 8% annual coupon bond with facevalue $1,000 and 5 years to maturity.A) $1,B) $1,C) $1,D) $1,E) $Answer: C Difficulty: DifficultRationale: i = [ ]1/5 - 1 = 6%; FV = 1000, PMT = 80, n = 5, i = 6, PV = $51. Given the yield on a 3 year zero-coupon bond is 7% and forward rates of 6% in year 1and % in year 2, what must be the forward rate in year 3A) %B) %C) %D) %E) none of the above.Answer: C Difficulty: ModerateRationale: f3 = 3 / [ ] - 1 = %Use the following to answer questions 52-61:52. What should the purchase price of a 1-year zero coupon bond be if it is purchased todayand has face value of $1,000A) $B) $C) $D) $E) $Answer: D Difficulty: DifficultRationale: $1,000 / = $53. What should the purchase price of a 2-year zero coupon bond be if it is purchased todayand has face value of $1,000A) $B) $C) $D) $E) $Answer: B Difficulty: DifficultRationale: $1,000 / [] = $54. What should the purchase price of a 3-year zero coupon bond be if it is purchased todayand has face value of $1,000A) $B) $C) $D) $E) $Answer: E Difficulty: DifficultRationale: $1,000 / [] = $55. What should the purchase price of a 4-year zero coupon bond be if it is purchased todayand has face value of $1,000A) $B) $C) $D) $E) $Answer: B Difficulty: DifficultRationale: $1,000 / [] = $56. What should the purchase price of a 5-year zero coupon bond be if it is purchased todayand has face value of $1,000A) $B) $C) $D) $E) $Answer: A Difficulty: DifficultRationale: $1,000 / [] = $57. What is the yield to maturity of a 1-year bondA) %B) %C) %D) %E) %Answer: A Difficulty: ModerateRationale: % (given in table)58. What is the yield to maturity of a 5-year bondA) %B) %C) %D) %E) %Answer: C Difficulty: ModerateRationale: []1/5 -1 = %59. What is the yield to maturity of a 4-year bondA) %B) %C) %D) %E) %Answer: C Difficulty: ModerateRationale: []1/4 -1 = %60. What is the yield to maturity of a 3-year bondA) %B) %C) %D) %E) %Answer: B Difficulty: ModerateRationale: []1/3 -1 = %61. What is the yield to maturity of a 2-year bondA) %B) %C) %D) %E) %Answer: D Difficulty: ModerateRationale: []1/2 -1 = %Essay Questions62. Discuss the three theories of the term structure of interest rates. Include in yourdiscussion the differences in the theories, and the advantages/disadvantages of each.Difficulty: ModerateAnswer:The expectations hypothesis is the most commonly accepted theory of term structure.The theory states that the forward rate equals the market consensus expectation of future short-term rates. Thus, yield to maturity is determined solely by current and expected future one-period interest rates. An upward sloping, or normal, yield curve wouldindicate that investors anticipate an increase in interest rates. An inverted, or downward sloping, yield curve would indicate an expectation of decreased interest rates. Ahorizontal yield curve would indicate an expectation of no interest rate changes.The liquidity preference theory of term structure maintains that short-term investorsdominate the market; thus, in general, the forward rate exceeds the expected short-term rate. In other words, investors prefer to be liquid to illiquid, all else equal, and willdemand a liquidity premium in order to go long term. Thus, liquidity preference readily explains the upward sloping, or normal, yield curve. However, liquidity preferencedoes not readily explain other yield curve shapes.Market segmentation and preferred habitat theories indicate that the markets fordifferent maturity debt instruments are segmented. Market segmentation maintains that the rates for the different maturities are determined by the intersection of the supply and demand curves for the different maturity instruments. Market segmentation readilyexplains all shapes of yield curves. However, market segmentation is not observed in the real world. Investors and issuers will leave their preferred maturity habitats if yields are attractive enough on other maturities.The purpose of this question is to ascertain that students understand the variousexplanations (and deficiencies of these explanations) of term structure.63. Term structure of interest rates is the relationship between what variables What isassumed about other variables How is term structure of interest rates depictedgraphicallyDifficulty: ModerateAnswer:Term structure of interest rates is the relationship between yield to maturity and term to maturity, all else equal. The "all else equal" refers to risk class. Term structure ofinterest rates is depicted graphically by the yield curve, which is usually a graph of .governments of different yields and different terms to maturity. The use of .governments allows one to examine the relationship between yield and maturity,holding risk constant. The yield curve depicts this relationship at one point in time only.This question is designed to ascertain that students understand the relationshipsinvolved in term structure, the restrictions on the relationships, and how therelationships are depicted graphically.64. Although the expectations of increases in future interest rates can result in an upwardsloping yield curve; an upward sloping yield curve does not in and of itself imply the expectations of higher future interest rates. Explain.Difficulty: ModerateAnswer:The effects of possible liquidity premiums confound any simple attempt to extractexpectation from the term structure. That is, the upward sloping yield curve may be due to expectations of interest rate increases, or due to the requirement of a liquiditypremium, or both. The liquidity premium could more than offset expectations ofdecreased interest rates, and an upward sloping yield would result.The purpose of this question is to assure that the student understands the confounding of the liquidity premium with the expectations hypothesis, and that the interpretations of term structure are not clear-cut.65. Explain what the following terms mean: spot rate, short rate, and forward rate. Whichof these is (are) observable todayDifficulty: ModerateAnswer:From the answer to Concept Check 2, on page 516: “The n-period spot rate is the yield to maturity on a zero-coupon bond with a maturity of n periods. The short rate forperiod n is the one-period interest rate that will prevail in period n. The forward rate for period n is the short rate that would satisfy a “break-even condition” equating the total returns on two n-period investment strategies. The first strategy is an investment in an n-period zero-coupon bond. The second is an investment in an n-1 period zero-coupon bond “rolled over” into an investment in a one-period zero. Spot rates and forward rates are observable today, but because interest rates evolve with uncertainty, future short rates are not. In the special case in which there is no uncertainty in future interest rates, the forward rate calculated from the yield curve would equal the short rate that will prevail in that period.”This question checks whether the student understands the difference between each kind of rate.66. Answer the following questions that relate to bonds.• A 2-year zero-coupon bond is selling for $. What is the yield to maturity of this bond•The price of a 1-year zero coupon bond is $. What is the yield to maturity of this bond•Calculate the forward rate for the second year.•How can you construct a synthetic one-year forward loan (you are agreeing now to loan in one year) State the strategy and show the corresponding cash flows.Assume that you can purchase and sell fractional portions of bonds. Show allcalculations and discuss the meaning of the transactions.Difficulty: Difficult。

高二英语金融投资概念单选题30题

高二英语金融投资概念单选题30题1. In the world of financial investment, a _____ is a type of security that represents the ownership of a fraction of a corporation.A. bondB. fundC. stockD. deposit答案：C。

解析：在金融投资领域，股票（stock）代表着对公司的部分所有权。

债券（bond）是一种债务凭证，与所有权无关；基金fund）是集合资金进行多种投资的形式，并非代表公司所有权；存款 deposit）是把钱存入银行等金融机构，和公司所有权没有关系。

2. If you want a relatively stable income from your investment, you might consider _____.A. stocksB. high - risk fundsC. bondsD. new - founded companies答案：C。

解析：债券（bonds）通常能提供相对稳定的收益。

股票 stocks）收益波动较大；高风险基金 high - risk funds）风险高，收益不稳定；新成立的公司（new - founded companies）投资风险大，收益不稳定，不符合想要相对稳定收益的需求。

3. A mutual fund pools money from many investors to _____.A. buy a single stockB. buy a variety of investmentsC. only invest in bondsD. deposit in one bank答案：B。

解析：共同基金 mutual fund）是从众多投资者那里募集资金来购买多种投资产品。

不是只购买单一股票 buy a single stock）；也不是只投资债券（only invest in bonds）；更不是只在一家银行存款 deposit in one bank）。

国际投资学试题及答案

国际投资学试题及答案题目：国际投资学试题及答案国际投资学试题一、选择题（每题2分，共40分）1. 以下哪个不属于国际投资的主要形式？A. 直接投资B. 间接投资C. 金融投资D. 投资银行2. 对于跨国公司而言，以下哪个因素不是影响其对外直接投资决策的主要因素？A. 政治因素B. 经济因素C. 文化因素D. 生态因素3. 下列哪个不属于国际投资吸引的主要因素？A. 市场规模和潜力B. 政治稳定性C. 法律和法规环境D. 投资者的强大实力4. 国际投资的主要风险包括以下哪些方面？A. 政治风险B. 经济风险C. 汇率风险D. 环保风险5. FDI 是哪种国际投资形式的缩写？A. Foreign Direct InvestmentB. Foreign Domestic InvestmentC. Freezone Direct InvestmentD. Freezone Domestic Investment二、判断题（每题2分，共20分）1. 外国直接投资是指跨国公司在本国进行的国际投资。

2. 投资收益率是评估一个投资项目是否可行的重要指标。

3. FDI 是国际货币基金组织的缩写。

4. 国际投资的目的主要是获取市场准入权。

5. 投资组合是指投资者根据自己的风险承受能力将资金配置于不同的投资项目。

三、简答题（每题10分，共30分）1. 解释国际投资的概念和特点。

2. 分析国际投资的主要影响因素。

3. 阐述国际投资的主要风险及应对策略。

国际投资学试题答案一、选择题答案：1. A2. D3. D4. A、B、C5. A二、判断题答案：1. 错误2. 正确3. 错误4. 正确5. 正确三、简答题答案：1. 国际投资是指跨国公司或个人在国外进行的投资活动。

其特点包括：涉及多个国家、跨越国界、涉及较大金额、涉及较长时间周期等。

2. 国际投资的主要影响因素包括：政治因素、经济因素、文化因素、法律和法规环境等。

这些因素会影响投资者的决策以及投资项目的可行性。

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INVESTMENTTUTORIAL 1SUMISSION DEADLINE: OCT 221、Primary market refers to the market ____________、A、that attempts to identify mispriced securities and arbitrage opportunities、B、in which investors trade already issued securities、C、where new issues of securities are offered、D、in which securities with customtailored characteristics are designed、2、Asset allocation refers to the _________、A、allocation of the investment portfolio across broad asset classesB、analysis of the value of securitiesC、choice of specific assets within each asset classD、none of the answers define asset allocation3、An example of a derivative security is _________、A、a mon share of General MotorsB、a call option on Intel stockC、a Ford bondD、a U、S、Treasury bond4、Money Market securities are characterized by ________、I、maturity less than one yearII、safety of the principal investmentIII、low rates of returnA、I onlyB、I and II onlyC、I and III onlyD、I, II and III5、__________ assets generate net ine to the economy and __________ assets define allocation of ine among investors、A、Financial, financialB、Financial, realC、Real, financialD、Real, real6、An important trend that has changed the contemporary investment market is _________、A、financial engineeringB、globalizationC、securitizationD、all three of the other answers7、Securitization refers to the creation of new securities by _________、A、selling individual cash flows of a security or loanB、repackaging individual cash flows of a security or loan into a new payment patternC、taking an illiquid asset and converting it into a marketable securityD、selling financial services overseas as well as in the U、S、8、Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claims in capital markets becauseI、intermediaries are better diversified than most individualsII、intermediaries can exploit economies of scale in investing that individual investors cannotIII、intermediated investments usually offer higher rates of return than direct capital market claimsA、I onlyB、I and II onlyD、I, II and III9、Stone Harbor Products takes out a bank loan、It receives $100,000 and signs a promissory note to pay back the loan over 5 years、A、A new financial asset was created in this transaction、B、A financial asset was traded for a real asset in this transaction、C、A financial asset was destroyed in this transaction、D、A real asset was created in this transaction、10、In recent years the greatest dollar amount of securitization occurred for which type loan?A、Home mortgagesB、Credit card debtC、Automobile loansD、Equipment leasing11、An investment advisor has decided to purchase gold, real estate, stocks, and bonds in equal amounts、This decision reflects which part of the investment process?A、Asset allocationB、Investment analysisC、Portfolio analysisD、Security selection12、A dollar denominated deposit at a London bank is called _____、A、eurodollarsB、LIBORC、fed fundsD、banker's acceptance13、The German stock market is measured by which market index?A、FTSEB、Dow Jones 30C、DAXD、Nikkei14、Which one of the following is a true statement regarding the Dow Jones Industrial Average?A、It is a valueweighted average of 30 large industrial stocksB、It is a priceweighted average of 30 large industrial stocksC、It is a priceweighted average of 100 large stocks traded on the New York Stock ExchangeD、It is a valueweighted average of all stocks traded on the New York Stock Exchange15、Preferred stock is like longterm debt in that ___________、A、it gives the holder voting power regarding the firm's managementB、it promises to pay to its holder a fixed stream of ine each yearC、the preferred dividend is a taxdeductible expense for the firmD、in the event of bankruptcy preferred stock has equal status with debt16、Three stocks have share prices of $12, $75, and $30 with total market values of $400 million, $350 million and $150 million respectively、If you were to construct a priceweighted index of the three stocks what would be the index value?A、300B、39C、43D、3017、In a ___________ index changes in the value of the stock with the greatest market value will move the index value the most everything else equal、A、value weighted indexB、equal weighted indexD、bond price index18、A benchmark index has three stocks priced at $23, $43, and $56、The number of outstanding shares for each is 350,000 shares, 405,000 shares, and 553,000 shares, respectively、If the market value weighted index was 970 yesterday and the prices changed to $23, $41, and $58, what is the new index value?A、960B、970C、975D、98519、Under firm mitment underwriting the ______ assumes the full risk that the shares cannot be sold to the public at the stipulated offering price、A、red herringB、issuing panyC、initial stockholderD、underwriter20、Barnegat Light sold 200,000 shares in an initial public offering、The underwriter's explicit fees were $90,000、The offering price for the shares was $35, but immediately upon issue, the share price jumped to $43、What is the best estimate of the total cost to Barnegat Light of the equity issue?A、$90,000B、$1,290,000C、$2,390,000D、$1,690,00021、Which one of the following statements about IPOs is not true?A、IPOs generally underperform in the short run、B、IPOs often provide very good initial returns to investors、C、IPOs generally provide superior longterm performance as pared to other stocks、D、Shares in IPOs are often primarily allocated to institutional investors、22、The NYSE recently acquired the ECN _______ and NASDAQ recently acquired the ECN ________、A、Archipelago; InstinetB、Instinet; ArchipelagoC、Island; InstinetD、LSE; Euronext23、Which one of the following is not an example of a brokered market?A、Residential real estate marketB、Market for large block security transactionsC、Primary market for securitiesD、NASDAQ24、An order to buy or sell a security at the current price is a ______________、A、limit orderB、market orderC、stop loss orderD、stop buy order25、If an investor places a _________ order the stock will be sold if its price falls to the stipulated level、If an investor places a __________ order the stock will be bought if its price rises above the stipulated level、A、stopbuy; stoplossB、market; limitC、stoploss; stopbuyD、limit; market26、On a given day a stock dealer maintains a bid price of $1000、50 for a bond and an ask price of $1003、25、The dealer made 10 trades which totaled 500 bonds traded that day、What was the dealer's gross trading profit for thisC、$275D、$1,45027、The bulk of most initial public offerings (IPOs) of equity securities go to ___________、A、institutional investorsB、individual investorsC、the firm's current shareholdersD、day traders28、The _________ price is the price at which a dealer is willing to purchase a security、A、bidB、askC、clearingD、settlement29、The bidask spread exists because of _______________、A、market inefficienciesB、discontinuities in the marketsC、the need for dealers to cover expenses and make a profitD、lack of trading in thin markets30、Both the NYSE and Nasdaq have lost market share to ECNs in recent years、Part of Nasdaq's response to the growth of ECNs has been to _______、I、Purchase Instinet, a major ECNII、Enable automatic trade execution through its new Market CenterIII、Switch from stock ownership to mutual ownershipA、I onlyB、II and III onlyC、I and II onlyD、I, II and III31、You purchased XYZ stock at $50 per share、The stock is currently selling at $65、Your gains could be protected by placing a _________、A、limitbuy orderB、limitsell orderC、market orderD、stoploss order32、You find that the bid and ask prices for a stock are $10、25 and $10、30 respectively、If you purchase or sell the stock you must pay a flat mission of $25、If you buy 100 shares of the stock and immediately sell them, what is your total implied and actual transaction cost in dollars?A、$50B、$25C、$30D、$5533、Assume you purchased 500 shares of XYZ mon stock on margin at $40 per share from your broker、If the initial margin is 60%, the amount you borrowed from the broker is _________、A、$20,000B、$12,000C、$8,000D、$15,00034、You shortsell 200 shares of Tuckerton Trading Co、, now selling for $50 per share、What is your maximum possible gain ignoring transactions cost?D、unlimited35、You shortsell 200 shares of Rock Creek Fly Fishing Co、, now selling for $50 per share、If you wish to limit your loss to $2,500, you should place a stopbuy order at ____、A、$37、50B、$62、50C、$56、25D、$59、7536、You purchased 200 shares of ABC mon stock on margin at $50 per share、Assume the initial margin is 50% and the maintenance margin is 30%、You will get a margin call if the stock drops below ________、(Assume the stock pays no dividends and ignore interest on the margin loan、)A、$26、55B、$35、71C、$28、95D、$30、7737、You purchased 250 shares of mon stock on margin for $25 per share、The initial margin is 65% and the stock pays no dividend、Your rate of return would be __________ if you sell the stock at $32 per share、Ignore interest on margin、A、35%B、39%C、43%D、28%38、Which one of the following invests in a portfolio that is fixed for the life of the fund?A、Mutual fundB、Money market fundC、Managed investment panyD、Unit investment trust39、A __________ is a private investment pool open only to wealthy or institutional investors that is exempt from SEC regulation and can therefore pursue more speculative policies than mutual funds、A、mingled poolB、unit trustC、hedge fundD、money market fund40、A contingent deferred sales charge is monly called a ____、A、frontend loadB、backend loadC、12b1 chargeD、top end sales mission41、Assume that you have just purchased some shares in an investment pany reporting $500 million in assets, $50 million in liabilities, and 50 million shares outstanding、What is the Net Asset Value (NA V) of these shares?A、$12、00B、$9、00C、$10、00D、$1、0042、The Vanguard 500 Index Fund tracks the performance of the S&P 500、To do so the fund buys shares in each S&P 500 pany __________、A、in proportion to the market value weight of the firm's equity in the S&P500B、in proportion to the price weight of the stock in the S&P500D、by purchasing an equal dollar amount of shares of each stock in the S&P50043、Investors who wish to liquidate their holdings in a closedend fund may ___________________、A、sell their shares back to the fund at a discount if they wishB、sell their shares back to the fund at net asset valueC、sell their shares on the open marketD、sell their shares at a premium to net asset value if they wish44、__________ funds stand ready to redeem or issue shares at their net asset value、A、ClosedendB、IndexC、OpenendD、Hedge45、Consider a mutual fund with $300 million in assets at the start of the year, and 12 million shares outstanding、If the gross return on assets is 18% and the total expense ratio is 2% of the year end value, what is the rate of return on the fund?A、15、64%B、16、00%C、17、25%D、17、50%46、A/an _____ is an example of an exchangetraded fund、A、SPDR or spiderB、samuraiC、VanguardD、openend fund47、The Wildwood Fund sells Class A shares with a frontend load of 5% and Class B Shares with a 12b1 fees of 1% annually、If you plan to sell the fund after 4 years, are Class A or Class B shares the better choice? Assume a 10% annual return net of expenses、A、Class AB、Class BC、There is no difference、D、There is insufficient information given、48、Advantages of ETFs over mutual funds include all but which one of the following?A、ETFs trade continuously so investors can trade throughout the dayB、ETFs can be sold short or purchased on margin, unlike fund sharesC、ETF providers do not have to sell holdings to fund redemptionsD、ETF values can diverge from NA V49、A mutual fund has $50 million in assets at the beginning of the year and 1 million shares outstanding throughout the year、Throughout the year assets grow at 12%、The fund imposes a 12b1 fee on all shares equal to 1%、The fee is imposed on year end asset values、If there are no distributions what is the end of year NAV for the fund?A、$50、00B、$55、44C、$56、12D、$54、5550、You pay $21,600 to the Laramie Fund which has a NAV of $18、00 per share at the beginning of the year、The fund deducted a frontend load of 4%、The securities in the fund increased in value by 10% during the year、The fund's expense ratio is 1、3% and is deducted from year end asset values、What is your rate of return on the fund if you sell your shares at the end of the year?A、4、35%B、4、23%C、6、45%。

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