Mã I

1. A technical analyst would consider the following a strong buy signal:

a. a graph of declining prices ends in a trough followed by an upward trend that breaks through
the declining trend channel.
b. a graph begins to trade in a declining trend after it breaks out of its flat trend channel.
c. a graph begins to trade in a flat trend after it breaks out of its rising trend channel.
d. a graph of increasing prices ends in a peak followed by a downward trend that breaks through the
rising trend channel
2. Buyers of put options anticipate the value of the underlying asset will _____, and
sellers of call options anticipate the value of the underlying asset will____
a. decrease; increase
b. increase; decrease
c. decrease; decrease
d. increase; increase
3. If a portfolio had a return of 18%, the risk-free asset return was 5%, and the
standard deviation of the portfolio's excess returns was 34%, the risk premium would be:
a. 18%.
b. 49%.
c. 13%.
d. 12%.
4. The _____ is defined as the present value of all cash proceeds to the investor in the
stock.
a. dividend-payout ratio
b. intrinsic value
c. plowback ratio
d. market-capitalization rate
5. When the 50-day moving average crosses the 200-day moving average from_____ on
_____volume, this would be a_____ signal.
a. below, high, bearish.
b. above, low, bullish.
c. below, high, bullish.
d. below, low, bullish.
6. A year ago, you invested $1,000 in a savings account that pays an annual interest
rate of 9%. What is your approximate annual real rate of return if the rate of inflation was
4% over the year?
a. 5%
b. 7%
c. 3%
d. 10%
7. The terms of futures contracts...... standardized, and the terms of forward
contracts...... standardized.
a. are; are not
b. are; are
c. are not; are not
d. are not; are
8. High P/E ratios tend to indicate that a company will......, ceteris paribus.
a. grow quickly
b. not grow
c. grow slowly
d. grow at the same speed as the average company
9. The potential loss for a writer of a naked call option on a stock is
a. increasing when the stock price is decreasing.
b. equal to the call premium.
c. unlimited.
d. limited.
10. A rapidly growing GDP indicates a(n)_____ economy with_____ opportunity for a firm
to increase sales.
a. stagnant; ample
b. expanding; ample
c. expanding; little
d. stagnant; little
11. The value of a bond is the amount that the issuer must pay at maturity.
a. discounted
b. market
c. face
d. present
12. A coupon bond that pays interest annually has a par value of $1,000, matures in five
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. $620.92
b. $886.28
c. $712.99
d. $1,123.01
13. The two primary tools of a technical analyst are:
a. price and volume.
b. price and technical indicators.
c. level of the market index and volume.
d. economic indicators and level of the market index.
14. when the 50-day moving average crosses the 200-day moving average from below on
good volume:
a. this would be a bearish indicator because it signals a change to a negative trend
b. this would be a bearish indicator because it signals a change to a positive trend.
c. this would be a bullish indicator because it signals a change to a negative trend
d. this would be a bullish indicator because it signals a change to a positive trend
15. Accrued interest
a. must be paid by the buyer of the bond and remitted to the seller of the bond.
b. is quoted in the bond price in the financial press.
c. must be paid to the broker for the inconvenience of selling bonds between maturity dates.
d. is quoted in the bond price in the financial press and must be paid by the buyer of the bond and
remitted to the seller of the bond
 16. Which of the following is most closely associated with the terms "primary trend,"
"intermediate trend," and "short-term trend"?
a. Candlestick chart
b. Bar chart
c. Dow Theory
d. Channel
17. The ________ is a measure of the average rate of return an investor will earn if the
investor buys the bond now and holds until maturity.
a. dividend yield
b. current yield
c. P/E ratio
d. yield to maturity
18. SGA Consulting had a FCFE of $3.2M last year and has 3.2M shares outstanding. SGA's
required return on equity is 13%, and WACC is 11.5%. If FCFE is expected to grow at 8.5%
forever, the intrinsic value of SGA's shares is
a. $244.42.
b. $26.56.
c. $21.60.
d. $24.11.
19. Using semi-annual compounding, a 15-year zero-coupon bond that has a par value
of $1,000 and a required return of 8% would be priced at approximately
a. $308.
b. $315.
c. $555.
d. $464.
20. Consider two bonds, A and B. Both bonds presently are selling at their par value of
$1,000. Each pays interest of $120 annually. Bond A will mature in five years, while bond B
will mature in six years. If the yields to maturity on the two bonds change from 12% to
10%.
a. both bonds will increase in value, but bond B will increase more than bond A.
b. both bonds will decrease in value, but bond A will decrease more than bond B.
c. both bonds will decrease in value, but bond B will decrease more than bond A.
d. both bonds will increase in value, but bond A will increase more than bond B.
21. You purchase one JNJ 75 call option for a premium of $3. Ignoring transaction
costs, the break-even price (Profit to Call Holder = 0$) of the position is:
a. $78
b. $72
c. $3
d. $75
22. You wish to earn a return of 13% on each of two stocks, X and Y. Stock X is
expected to pay a dividend of $3 in the upcoming year while stock Y is expected to pay a
dividend of $4 in the upcoming year. The expected growth rate of dividends for both stocks
is 7%. The intrinsic value of stock X:
a. will be the same as the intrinsic value of stock Y.
b. will be less than the intrinsic value of stock Y.
c. will be the same or greater than the intrinsic value of stock Y.
d. will be greater than the intrinsic value of stock Y.
23. In a futures contract, the futures price is:
a. determined by the buyer and the seller when the delivery of the commodity takes place.
b. determined by the buyer and the seller when they initiate the contract.
c. determined by the futures exchange.
d. determined independently by the provider of the underlying asset
24. In order to have confirmation of a major market trend under the Dow Theory, the:
a. utility average must lead the transportation average.
b. transportation and industrial average must confirm each other.
c. transportation and utility averages must confirm each. other.
d. industrial and utility averages must confirm each other
25. Based on the daily closings for the Dow Jones Industrial Average (day 1 is 10500, day 2
is 10025, day 3 is 10125, day 4 is 10210), calculate a four-day moving average for Day 4.
a. 10,000
b. 10,500
c. 10,210
d. 10,215
26. A 6.5 percent coupon bond issued by the State of California sells for $1,000. What
coupon rate on a corporate bond selling at $1,000 par value would produce the same after-
tax return to the investor as the municipal bond if the investor is in the 26 percent marginal
tax bracket?
a. 1.69 percent
b. 8.78 percent
c. 14.63 percent
d. 11.25 percent
27. To a technician that believed in the importance of volume, a bullish signal would
occur when
a. prices decrease on heavy volume.
b. prices increase on light volume.
c. prices decrease on light volume.
d. prices increase on heavy volume
28. Technical analysis reflects the idea that stock prices:
a. move upward over time
b. move inversely over time
c. move randomly
d. move in trends
29. Which of the following contains the real body?
a. Candlestick chart
b. Moving average chart
c. Bar chart
d. Point-and-figure chart
30. Treasury bonds are subject to ____ but are essentially free of ____ risk.
a. interest-rate; default
b. interest-rate; underwriting
c. default; underwriting
d. default; interest-rate
 31. Low Tech Company has an expected ROE of 10%. The dividend growth rate will be
if the firm follows a policy of paying 40% of earnings in the form of dividends.
a. 3.0%
b. 7.2%
c. 6.0%
d. 4.8%
32. You purchase one JNJ 75 call option for a premium of $3. Ignoring transaction
costs, the break-even price of the position is
a. $3.
b. $78.
c. $75.
d. $72.
33. You are considering acquiring a common stock that you would like to hold for one
year. You expect to receive both $0.75 in dividends and $16 from the sale of the stock at the
end of the year. The maximum price you would pay for the stock today is if you wanted to
earn a 12% return.
a. $14.96
b. $27.50
c. $23.91
d. $26.52
34. .... are analysts who use information concerning current and prospective
profitability of a firm to assess the firm's fair market value.
a. Systems analysts
b. Fundamental analysts
c. Technical analysts
d. Credit analysts
35. Which of the following are not examples of defensive industries?
a. Public utilities
b. Pharmaceutical firms
c. Food producers
d. Durable goods producers
36. A coupon bond pays annual interest, has a par value of $1,000, matures in four years, has
a coupon rate of 10%, and has a yield to maturity of 12%. The current yield on this bond is
a. 10.45%.
b. 10.52%.
c. 10.65%.
d. 10.95%.
37. Risk Metrics Company is expected to pay a dividend of $3.50 in the coming year.
Dividends are expected to grow at a rate of 10% per year. The risk-free rate of return is
5%, and the expected return on the market portfolio is 13%. The stock is trading in the
market today at a price of $90.00. What is the approximate beta of Risk Metrics's stock?
a. 1.4
b. 1.1
c. 1.0
d. 0.8
38. The Gordon model
a. is a generalization of the perpetuity formula to cover the case of a growing perpetuity and is
valid only when g is less than k.
b. is valid only when g is less than k.
c. is a generalization of the perpetuity formula to cover the case of a growing perpetuity.
d. is valid only when k is less than g.
39. Fly Boy Corporation is expected have EBIT of $800k this year. Fly Boy Corporation
is in the 30% tax bracket, will report $52,000 in depreciation, will make $86,000 in capital
expenditures, and will have a $16,000 increase in net working capital this year. What is Fly
Boy's FCFF?
a. 542,000
b. 682,000
c. 406,000
d. 510,000
e. 596,000
40. The _____ is used to calculate the present value of a bond.
a. current yield
b. yield to maturity
c. yield to call
d. nominal yield
Mã II
1. Calculate the yield to maturity of a zero-coupon bond with a face value of $1000,
maturing in 15 years and selling for a price of $525.75.
a. 4.38 percent
b. 15.26 percent
c. 5.62 percent
d. 8.74 percent
2. Which of the following securities is a money market instrument?
a. Treasury note
b. Municipal bond
c. Treasury bond
d. Commercial paper
3. Sure Tool Company is expected to pay a dividend of $2 in the upcoming year. The
risk-free rate of return is 4%, and the expected return on the market portfolio is 14%.
Analysts expect the price of Sure Tool Company shares to be $22 a year from now. The beta
of Sure Tool Company's stock is 1.25. The market's required rate of return on Sure's stock
is
a. 15.25%.
b. 16.5%.
c. 14.0%.
d. 17.5%.
4. 25
5. Low P/E ratios tend to indicate that a company will _____, ceteris paribus.
a. grow slowly
b. grow quickly
c. P/E ratios are unrelated to growth.
d. grow at the same speed as the average company
 6. Fiscal policy generally has a _____ direct impact than monetary policy on the
economy, and the formulation and implementation of fiscal policy is_____ than that of
monetary policy.
a. less; quicker
b. more; quicker
c. more; slower
d. less; slower
7. 29
8. 14
9. If interest rates increase, business investment expenditures are likely to_____and
consumer durable expenditures are likely to ______.
a. increase; decrease
b. increase; increase
c. decrease; increase
d. decrease; decrease
10. Before expiration, the time value of an in-the-money call option is always
a. positive.
b. equal to zero.
c. equal to the stock price minus the exercise price.
d. negative.
11. 21
12. 13
13. According to Michael Porter, there are five determinants of competition. An
example of _____ is the threat new competitors pose to existing competitors in an industry.
a. pressure from substitute products
b. rivalry between existing competitors
c. threat of entry
d. bargaining power of buyers
14. 16
15. On which of the following does a hammer sometimes appear?
a. Point-and-figure chart.
b. Moving average chart.
c. Bar chart.
d. Candlestick chart.
16. A _____bond is a bond where the bondholder has the right to cash in the bond
before maturity at a specified price after a specific date.
a. Treasury
b. callable
c. coupon
d. zero-coupon
e. put
17. You hold one long corn futures contract that expires in April. To close your position
in corn futures before the delivery date you must
a. sell one May corn futures contract.
b. sell one April corn futures contract.
c. buy two April corn futures contract.
d. buy one May corn futures contract.
18. 19
19. 14
20. High Tech Chip Company is expected to have EPS in the coming year of $2.50. The
expected ROE is 12.5%. An appropriate required return on the stock is 11%. If the firm
has a plowback ratio of 70%, the growth rate of dividends should be
a. 6.60%.
b. 8.75%.
c. 6.25%.
d. 5.00%.
21. 34
22. 15
23. If a 7% coupon bond is trading for $975.00, it has a current yield of
a. 7.18%.
b. 7.24%.
c. 6.53%.
d. 7.00%.
24. 8
25. 36
26. Consider a 5-year bond with a 10% coupon that has a present yield to maturity of
8%. If interest rates remain constant, one year from now, the price of this bond will be
a. lower.
b. higher.
c. the same.
d. $1,000.
27. Capital market trading occurs in:
a. the primary and secondary markets
b. the secondary market
c. the primary market
d. none of the options
28. Which of the following indicates a sell signal to technical analysts?
a. The resistance level is broken.
b. The amount of short selling done by specialists is high.
c. The advance-decline line is rising in a falling market.
d. The majority of stock market newsletters are bearish.
29. A trader who has a ...... position in gold futures wants the price of gold to...... in the
future.
a. short; increase
b. short; stay the same
c. short; decrease
d. long; decrease
30. Which of the following portfolio construction methods starts with security analysis?
a. Top-down
b. Bottom-up
c. Middle-out
d. Buy and hold
 31. Zero had a FCFE of $4.5M last year and has 2.25M shares outstanding. Zero's
required return on equity is 10%, and WACC is 8.2%. If FCFE is expected to grow at 8%
forever, the intrinsic value of Zero's shares is
a. $108.00.
b. $26.35.
c. $14.76.
d. $1080.00.
32. Dividend discount models and P/E ratios are used by _____ to find mispriced
securities. to try
a. dividend analysts
b. technical analysts
c. statistical analysts
d. fundamental analysts
33. 27
34. 7
35. Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year.
Dividends are expected to grow at the rate of 6% per year. The risk-free rate of return is
5%, and the expected return on the market portfolio is 13%. The stock of Torque
Corporation has a beta of 1.2. What is the return you should require on Torque's stock?
a. 20%
b. 14.6%
c. 15.6%
d. 12.0%
36. Preferred stockholders hold a claim on assets that has priority over the claims of
a. neither common stockholders nor bondholders
b. common stockholders, but after that of bondholders
c. both common stockholders and bondholders
d. bondholders, but after that of common stockholders
37. See Candy had a FCFE of $6.1M last year and has 2.32M shares outstanding. See's
required return on equity is 10.6%, and WACC is 9.3%. If FCFE is expected to grow at
6.5% forever, the intrinsic value of See's shares is
a. $26.35.
b. $14.76.
c. $108.00.
d. $68.30
38. 23
39. 28
40. Callable bonds
a. are called when interest rates increase appreciably.
b. have a call price that declines as time passes.
c. are more likely to be called when interest rates decline and have a call price that declines as
time passes.
d. are called when interest rates decline appreciably.
MÃ III
2. A price range at which technicians would expect a substantial increase in the demand for a
stock is called
Support level
Firm B produces widgets, the after-tax profit of firm B will be

16. A zero coupon bond has a yield to maturity of 9%

Ceteris paribus
the price
19,20.
Suppose that the average P/E
21,22.
31,32.
37,38.

câu 1: calculate the yield to maturity of a zero-coupon bond with a face value of $1000, maturing in 15y
and selling for a price of $525.75
1. 4.38 %
2. 15.26%
3. 5.62%
4. 8.74%
câu 4: based on the daily closings for the Dow Jones Industrial Average (day 1 is 10500, day 2
is 10025, day 3 is 10125, day 4 is 10210), calculate a four-day moving average for day 4
1. 10000
2. 10215
3. 10210
4. 10500
câu 2: which of the following securities is a money market instrument
1. treasury note
2. municipal bond
3. Treasury bond
4. Commercial paper
34. The market price of stock A call option on stock A has an exercise price of $70. If this call
option is selling for $2.50, this call
=> ITM
8. Investor X bought stock A for $10. The current market price of this stock is $32. Investor X
does not want to realize the profit yet, but X worried about the short-term volatility of the stock
market. The price of stock A will go down. Which of the following actions should Investor X
take
=> Buy a put option on stock X