sn42018 (Create oF Review @ Quiz IVP - Final Exam Test ID: 78764042 Question #1 of 120 ‘Question ID: 412986, If stock X's expected return is 30% and its expected standard deviation is 5%, Stock X's expected coefficient of variation is: A) 60. B) 0.167. ©) 1.20, Question #2 of 120 ‘Question ID: 500877 ‘The price of a pay-fixed receive-floating interest rate swap is: ‘A) negative when floating rates are highly volatile. B) determined by expected future short-term rates. €) zero when floating rates and fixed rates are equal. Question #3 of 120 ‘Question ID: 434225 Student's Distribution Level of Significance for One-Tailed Test dt] 0.100] 0.050] 0.025] 0.01 | 0.005] 0.0005 Level of Significance for Two-Tailed Test Jat] 0.20 | 0.10 | 0.05 | 0.02 | 0.01 | 0.001 [40] 1.303] 1.684 | 2.021 | 2.423 | 2.704| 3.551 Ken Wallace is interested in testing whether the average price to earings (P/E) of firms in the retail industry is 25, Using a tdistributed test statistic and a 5% level of significance, the critical values for a sample of 41 firms is (are): A) -1.685 and 1.685. B) -2.021 and 2.021 htps:www-kaplanlearn comieducalontestpinY190580132tesl=78764042 1138sn42018 (Create or Review @ Quiz ©) -1.98 and 1.96. Question #4 of 120 Question ID; 415686 ‘Abond has a convexity of 51.44, What is the approximate percentage price change of the bond due to convexity if rates rise by 150 basis points? A) 0.26% B) 0.71%. ©) 0.58%, Question #5 of 120 Question 1D: 412836, The financial manager at Genesis Company is looking into the purchase of an apartment complex for $550,000. Net after-tax cash flows are expected to be $65,000 for each of the next five years, then drop to $50,000 for four years. Genesis’ required rate of return is 9% on projects of this nature. After nine years, Genesis Company expects to sell the property for after-tax proceeds of $300,000. What is the respective internal rate of return (IRR) and net present value (NPV) on this project? A) 7.01%; ~$53,765. B) 13.99%; $166,177. ©) 6.66% ~$64,170 Question #6 of 120 ‘Question ID: 898207 For a given stated annual rate of return, compared to the effective rate of return with discrete compounding, the effective rate of return with continuous compounding will be: A) higher. B) the same. €) lower. htps:www-kaplanlearn conveducalontestpinY190580132tesl¢=78754042 236sn42018 (create or Review @ Quiz Question #7 of 120 ‘Question ID: 415474 Which of the following least likely represents a primary market offering? When bonds are sold: A) from a dealer's inventory. B) in a private placement, ©) ona best-efforts basis. Question #8 of 120 Question ID: 413320 Which of the following statements about sample statistics is least accurate? A) The z-statistic is used for nonnormal distributions with known variance, but only for large samples. B) The z-statistic is used to test normally distributed data with a known variance, whether testing a large or a small sample. C) There is no sample statistic for non-normal distributions with unknown variance for either small or large samples, Question #9 of 120 Question ID: 413231 Monte Carlo simulation is necessary to: A) reduce sampling error. B) approximate solutions to complex problems. €) compute continuously compounded returns. Question #10 of 120 Question ID: 415488 Which of the following statements regarding zero-coupon bonds and spot interest rates is most accurate? A) Spot interest rates will never vary across time. B) Price appreciation creates only some of the zero-coupon bond's return. hitps:wuu:kaplanlearn conveducationtestpriny190680132te 764042 a6