ĐẦU TƯ TÀI CHÍNH

1. Which of the following securities is a money market instrument?

a. Treasury bond
b. Commercial paper
c. Treasury note
d. Municipal bond

2. If the Federal Reserve lowers the discount rate, ceteris paribus, the
equilibrium levels of funds lent will __________ and the equilibrium level of
real interest rates will ___________.
a. increase; decrease
b. increase; increase
c. decrease; increase
d. decrease; decrease

3. Compared to money market securities, capital market securities have

a. longer maturities
b. more liquidity
c. lower yields
d. less risk

4. Which one of the following terms best describes Eurodollars?

a. Dollars that have been exchanged for European currency.
b. Dollar-denominated deposits at American banks in the U.S.
c. Dollar-denominated deposits at branches of foreign banks in the U.S.
d. Dollar-denominated deposits only in European banks.
e. Dollar-denominated deposits at foreign banks and branches of American
banks outside the U.S.

5. Treasury bonds are subject to ________ risk but are essentially free of
________ risk.
a. interest-rate; default
b. default; interest-rate
c. default; underwriting
d. interest-rate; underwriting

6. Capital market trading occurs in

a. none of the options
b. the primary market
c. the secondary market
d. the primary and secondary markets
7. If the economy were going into a recession, an attractive industry to invest in
would be the
a. automobile and construction industries.
b. medical services industry.
c. automobile industry.
d. construction industry.

8. The _______ is defined as the present value of all cash proceeds to the investor
in the stock.
a. intrinsic value
b. dividend-payout ratio
c. market-capitalization rate
d. plowback ratio

9. Low P/E ratios tend to indicate that a company will _______, ceteris paribus.
a. grow at the same speed as the average company
b. P/E ratios are unrelated to growth.
c. grow quickly
d. grow slowly

10.A preferred stock will pay a dividend of $2.75 in the upcoming year and every
year thereafter; i.e., dividends are not expected to grow. You require a return
of 10% on this stock. Use the constant growth DDM to calculate the intrinsic
value of this preferred stock.
a. $0.275
b. $31.82
c. $56.25
d. $27.50

11.Dividend discount models and P/E ratios are used by __________ to try to find
mispriced securities.
a. statistical analysts
b. technical analysts
c. dividend analysts
d. fundamental analysts

12.The top-down analysis of a firm starts with

a. the industry outlook
b. the global economy.
c. the domestic economy
d. the relative value of the firm
13.________ are analysts who use information concerning current and
prospective profitability of a firm to assess the firm's fair market value.
a. Credit analysts
b. Systems analysts
c. Fundamental analysts
d. Technical analysts

14.High P/E ratios tend to indicate that a company will _______, ceteris paribus.
a. grow at the same speed as the average company
b. not grow
c. grow quickly
d. grow slowly

15._____ is equal to common shareholders’ equity divided by common shares

outstanding.
a. Tobin's Q
b. Book value per share
c. Liquidation value per share
d. Market value per share

16.Fundamental analysis uses

a. price momentum.
b. relative strength.
c. earnings, dividend prospects, and relative strength.
d. earnings and dividends prospects.

17.Sales Company paid a $1.00 dividend per share last year and is expected to
continue to pay out 40% of earnings as dividends for the foreseeable future. If
the firm is expected to generate a 10% return on equity in the future, and if
you require a 12% return on the stock, the value of the stock is
a. $18.67.
b. $13.00.
c. $16.67.
d. $17.67.

18.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. 8.75%.
b. 6.25%.k
c. 5.00%.
 d. 6.60%.

19.JCPenney Company is expected to pay a dividend in year 1 of $1.65, a

dividend in year 2 of $1.97, and a dividend in year 3 of $2.54. After year 3,
dividends are expected to grow at the rate of 8% per year. An appropriate
required return for the stock is 11%. The stock should be worth _______
today.
a. $66.00
b. $33.00
c. $71.80
d. $40.67

20.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. 1.0
b. 0.8
c. 1.1
d. 1.4

21.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. $1080.00.
b. $14.76.
c. $108.00.
d. $26.35.

22.Which of the following do technical analysts believe is a lower bound on a

stock’s price?
a. Moving average.
b. Shadow.
c. Trendline.
d. Support.

23.Which of the following indicates a buy signal to technical analysts?

a. Odd-lot buying exceeds odd-lot selling.
b. The advance-decline line is falling in a rising market.
c. The stock breaks through the moving average line from below.
d. The support level is broken.
24.In order to have confirmation of a major market trend under the Dow Theory,
the
a. transportation and industrial average must confirm each other.
b. transportation and utility averages must confirm each. other.
c. industrial and utility averages must confirm each other.
d. utility average must lead the transportation average.

25.Technical analysis reflects the idea that stock prices

a. move upward over time.
b. move randomly.
c. move inversely over time.
d. move in trends.

26.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 heavy volume.
c. prices decrease on light volume.
d. prices increase on light volume.

27.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. yield to maturity
c. P/E ratio
d. current yield

28.Governments never issue stock because

a. both A and B of the above
b. neither A nor B of the above
c. the Constitution (Hiến pháp) expressly forbids it
d. they cannot sell ownership claims

29.A rapidly growing GDP indicates a(n) ______ economy with ______
opportunity for a firm to increase sales.
a. expanding; ample
b. stagnant; little
c. expanding; little
d. stagnant; ample
30.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. decrease; decrease
c. increase; increase
d. increase; decrease
31.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 bullish indicator because it signals a change to a positive
trend.
c. this would be a bearish indicator because it signals a change to a positive trend.
d. this would be a bullish indicator because it signals a change to a negative trend.

32. The ________ value of a bond is the amount that the issuer must pay at
maturity.
a. present
b. discounted
c. face
d. market

33. Which of the following is not a characteristic of a money market instrument?

a. Liquidity premium
b. Long maturity
c. Long maturity and liquidity premium "
d. Liquidity

34. New issues of securities are sold in the ________ market(s).

a. primary and secondary
b. secondary
c. over-the-counter
d. primary

35.The Gordon mode

a. is valid only when k is less than g.
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 a generalization of the perpetuity formula to cover the case of a growing
perpetuity and is valid only when g is less than k
36. is a summary of the profitability of the firm over a period of time, such as
a year.
a. The income statement
b. The statement of cash flows
c. The balance sheet
d. The audit report

37. Sector rotation

a. is never worthwhile.
b. should always be carried out.
c. can be implemented without cost.
d. is shifting the portfolio more heavily toward an industry or sector that is
expected to perform well in the future.

38. If interest rates increase, business investment expenditures are likely to

______, and consumer durable expenditures are likely to _________.
a. decrease; increase
b. increase; decrease
c. increase; increase
d. decrease; decrease

39. If the economy is growing, firms with high operating leverage will experience
a. similar increases in profits as firms with low operating leverage.
b. higher increases in profits than firms with low operating leverage. "
c. no change in profits.
d. smaller increases in profits than firms with low operating leverage.

40. 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. bargaining power of buyers
d. threat of entry

41. According to Michael Porter, there are five determinants of competition. An

example of _____ is when competitors seek to expand their share of the
market.
a. pressure from substitute products
b. bargaining power of buyers
c. threat of entry
d. rivalry between existing competitors
42. 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. $21.60.
c. $24.11. "
d. $26.56.

43.Sales Company paid a $1.00 dividend per share last year and is expected to
continue to pay out 40% of earnings as dividends for the foreseeable future. If
the firm is expected to generate a 10% return on equity in the future, and if
you require a 12% return on the stock, the value of the stock is
a. $17.67. "
b. $16.67.
c. $13.00.
d. $18.67.

44. 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. 12.0%
c. 14.6% "
d. 15.6%

45. If a firm's sales decrease by 15%, and profits decrease by 20% during a
recession, the firm's operating leverage (DOL) is
a. 0.75
b. −5
c. 1.33 "
d. 5

46. Which of the following is not true regarding the Dow Theory?
a. It has a very high success rate. "
b. It does not forecast how long a movement will last.
c. It is subject to many criticisms.
d. It is intended to forecast the start of a primary movement.
47.A technical analyst would consider the following a strong buy signal:
a. a graph begins to trade in a flat trend after it breaks out of its rising trend channel.
b. a graph of declining prices ends in a trough followed by an upward trend
that breaks through the declining trend channel. "
c. a graph of increasing prices ends in a peak followed by a downward trend that
breaks through the rising trend channel.
d. a graph begins to trade in a declining trend after it breaks out of its flat trend
channel.

48. A price range at which technicians would expect a substantial increase in the
demand for a stock is called
a. resistance level.
b. support level. "
c. demand threshold.
d. resistance limit.

49. Which of the following is most closely associated with the terms “primary
trend,” “intermediate trend,” and “short-term trend”?
a. Bar chart.
b. Candlestick chart.
c. Channel.
d. Dow Theory.

50.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. higher.
b. the same.
c. lower. "
d. $1,000.

51. 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 decrease in value, but bond A will decrease more than bond
B. b. both bonds will decrease in value, but bond B will decrease more than bond A.
c. both bonds will increase in value, but bond B will increase more than bond
A. "
d. both bonds will increase in value, but bond A will increase more than bond B.
52.Of the following investments, ________ is (are) considered the safest.
a. corporate bonds
b. U.S. agency issues
c. Treasury bills "
d. commercial paper

53.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 12%.
(1075)

54.At what point would an investor be indifferent between a GM corporate bond

yielding 9.5 percent and a tax-free municipal bond of equal financial strength
if the investor's marginal tax rate is 25 percent? (7,13%)

55.Paper Express Company has a balance sheet which lists $85 million in assets,
$40 million in liabilities, and $45 million in common shareholders'equity. It has
1,400,000 common shares outstanding. The replacement cost of the assets is
$115 million. The market share price is $90. What is Paper Express's book
value per share? (32.14)
1) A top down analysis of a firm starts with ___________.
A. the relative value of the firm
B. the absolute value of the firm
C. the domestic economy
D. the global economy
E. the industry outlook
2) An example of a highly cyclical industry is _______.
A. the automobile industry
B. the tobacco industry
C. the food industry
D. the automobile industry and the tobacco industry
E. the tobacco industry and the food
3) Demand-side economics is concerned with ______.
A. government spending and tax levels
B. monetary policy
C. fiscal policy
D. government spending and tax levels and monetary policy
E. government spending and tax levels,
4) The most widely used monetary tool is __________.
A. altering the discount rate
B. altering the reserve requirements
C. open market operations
D. altering marginal tax rates
E. None of these is correct
5) The "real", or inflation-adjusted, exchange rate, is
A. the balance of trade.
B. the budget deficit.
C. the purchasing power ratio.
D. unimportant to the U.S. economy.
E. None of these is correct.
6) Monetary policy is determined by
A. government budget decisions.
B. presidential mandates.
C. the board of Governors of the Federal Reserve System.
D. congressional actions.
E. None of these is correct.
7) A trough is _______.
A. a transition from an expansion in the business cycle to the start of a contraction
B. a transition from a contraction in the business cycle to the start of an
expansion
C. a depression that lasts more than three years
D. only something used by farmers to feed pigs and not an investment term
8) A peak is _______.
A. a transition from an expansion in the business cycle to the start of a
contraction
B. a transition from a contraction in the business cycle to the start of an expansion
C. a depression that lasts more than three years
D. only a feature of geography and not an investment term
9) If the economy is growing, firms with high operating leverage will experience
_________.
A. higher increases in profits than firms with low operating leverage
B. similar increases in profits as firms with low operating leverage
C. smaller increases in profits than firms with low operating leverage
D. no change in profits
E. None of these is correct.
10) If the economy is growing, firms with low operating leverage will experience
_________.
A. higher increases in profits than firms with high operating leverage
B. similar increases in profits as firms with high operating leverage
C. smaller increases in profits than firms with high operating leverage
D. no change in profits

11) If the economy is shrinking, firms with high operating leverage will
experience _________.
A. higher decreases in profits than firms with low operating leverage
B. similar decreases in profits as firms with low operating leverage
C. smaller decreases in profits than firms with low operating leverage
D. no change in profits
12) If the economy is shrinking, firms with low operating leverage will
experience _________.
A. higher decreases in profits than firms with high operating leverage
B. similar decreases in profits as firms with high operating leverage
C. smaller decreases in profits than firms with high operating leverage
D. no change in profits
13) Industrial production refers to ________.
A. the amount of personal disposable income in the economy
B. the difference between government spending and government revenues
C. the total manufacturing output in the economy
D. the total production of goods and services in the economy
E. None of these is correct
14) GDP refers to ________.
A. the amount of personal disposable income in the economy
B. the difference between government spending and government revenues
C. the total manufacturing output in the economy
 D. the total production of goods and services in the economy
E. None of these is correct.
15) A declining GDP indicates a(n) ______ economy with ______ opportunity
for a firm to increase sales.
A. stagnant; little
B. stagnant; ample
C. expanding; little
D. expanding; ample
16) firm in the early stages of the industry life cycle will likely have _______.
A. high market penetration
B. high risk
C. rapid growth
D. high market penetration and rapid growth
E. high risk and rapid growth
17) Assume the U. S. government was to decide to increase the budget deficit.
This action will most likely cause __________ to increase.
A. interest rates
B. government borrowing
C. unemployment
D. interest rates and government borrowing
E. None of these is correct.
18) Assume that the Federal Reserve decreases the money supply. This action
will cause ________ to decrease.
A. interest rates
B. the unemployment rate
C. investment in the economy
D. trade balance
19) The North American Industry Classification System (NAICS) codes
A. are for firms that operate in the NAFTA region.
B. group firms by industry.
C. are a perfect classification system for firms.
D. are for firms that operate in the NAFTA region and group firms by industry.
E. are for firms that operate in the NAFTA region and are a perfect classification
system
20) Fiscal policy is difficult to implement quickly because
A. it requires political negotiations.
B. much of government spending is nondiscretionary and cannot be changed.
C. increases in tax rates affect consumer spending gradually.
D. it requires political negotiations and much of government spending is
nondiscretionary and cannot be changed.
E. it requires political negotiations and increases in
21) Inflation
A. is the rate at which the general level of prices is increasing.
B. rates are high when the economy is considered to be "overheated."
C. is unrelated to unemployment rates.
D. is the rate at which the general level of prices is increasing; and rates are
high when the economy is considered to be "overheated."
E. is the rate at which the general level of prices is increasing; and is unrelated to
unemployment
22) Classifying firms into groups, such as _________ provides an alternative to
the industry life cycle.
A. slow-growers
B. stalwarts
C. countercyclicals
D. slow-growers and stalwarts
E. slow-growers and
23) Which of the following are not examples of defensive industries?
A. Food producers.
B. Durable goods producers.
C. Pharmaceutical firms.
D. Public utilities.
E. Durable goods producers and
24) Which of the following are examples of defensive industries?
A. Food producers.
B. Durable goods producers.
C. Pharmaceutical firms.
D. Public utilities.
E. Food producers, pharmaceutical fims and public utilities
25) The industry life cycle is described by which of the following stage(s)?
A. Start-up.
B. Consolidation.
C. Absolute decline.
D. Start-up and consolidation.
E. Start-up, consolidation and
26) In the start-up stage of the industry life cycle
A. it is difficult to predict which firms will succeed and which firms will fail.
B. industry growth is very rapid.
C. firms pay a high level of dividends.
D. it is difficult to predict which firms will succeed and which firms will fail
and industry growth is very rapid.
E. industry growth is very rapid and firms pay a
27) In the consolidation stage of the industry life-cycle
A. it is difficult to predict which firms will succeed and which firms will fail.
 B. industry growth is very rapid.
C. the performance of firms will more closely track the performance of the
overall industry.
D. it is difficult to predict which firms will succeed and which firms will fail and
industry growth is very rapid.
E. industry growth is very rapid and the performance of firms will more closely
track the performance of the overall industry.
28) In the maturity stage of the industry life cycle
A. the product has reached full potential.
B. profit margins are narrower.
C. producers are forced to compete on price to a greater extent.
D. the product has reached full potential and profit margins are narrower.
E. the product has reached full potential, profit margins are narrower, and
producers are forced to compete on price to a greater extent.
29) In the decline stage of the industry life cycle
A. the product may have reached obsolescence.
B. the industry will grow at a rate less than the overall economy.
C. the industry may experience negative growth.
D. the product may have reached obsolescence and the industry will grow at a rate
less than the overall economy.
E. the product may have reached obsolescence, the industry will grow at a rate
less than the overall economy, and the industry may experience negative
growth
30) A variety of factors relating to industry structure affect the performance of
the firm, including
A. threat of entry.
B. rivalry between existing competitors.
C. the state of the economy.
D. threat of entry and the state of the economy.
E. threat of entry and rivalry between existing cometitors
31) The process of estimating the dividends and earnings that can be expected
from the firm based on determinants of value is called
A. business cycle forecasting.
B. macroeconomic forecasting.
C. technical analysis.
D. fundamental analysis.
32) The life cycle stage in which industry leaders are likely to emerge is the
A. start-up stage.
B. maturity stage.
C. consolidation stage.
D. relative decline stage.
33) Investment manager Peter Lynch refers to firms that are in bankruptcy or
soon might be as
A. slow growers.
B. stalwarts.
C. cyclicals.
D. asset plays.
E. turnarounds

34) A top-down analysis of a firm's prospects starts with

A. an examination of the firm's industry.
B. an evaluation of the firm's position within its industry.
C. a forecast of interest rate movements.
D. an assessment of the broad economic environment.
E. the application of the CAPM to find the firm's theoretical return.
35) In recent years, P/E multiples for S&P 500 companies have
A. ranged from -1 to -10.
B. ranged from 1 to 8.
C. ranged from 6 to 10.
D. ranged from 12 to 25.
E. ranged from 20 to more than 50.
36) The industry with the highest ROE in 2009 was
A. food.
B. data storage.
C. business software.
D. computer systems.
E. integrated oil & gas.
37) The industry with the lowest ROE in 2009 was
A. food.
B. data storage.
C. business software.
D. iron/steel.
E. integrated oil & gas.
38) The industry with the lowest return in 2009 was
A. renewable energy equipment.
B. oil equipment.
C. health care.
D. brokerage.
E. banking.
39) The industry with the highest return in 2009 was
A. home construction.
B. travel and tourism.
C. health care.
 D. brokerage.
E. banking.
40) Investors can ______ invest in an industry with the highest expected return
by purchasing _____.
A. most easily; industry-specific iShares
B. not; industry-specific iShares
C. most easily; industry-specific ADRs
D. not; individual stocks
E. None of these is correct.
41) Which of the following are key economic stats that are used to describe the
state of the macroeconomy
I) GDP
II) the unemployment rate
III) inflation
IV) consumer sentiment
V) the budget deficit
A. I, II, and V
B. I, III, and V
C. I, II, and III
D. I, II, III, and V
E. I, II, III, IV, V

42) An example of a positive demand shock is

A. a decrease in the money supply.
B. a decrease in government spending.
C. a decrease in foreign export demand.
D. a decrease in the price of imported oil.
E. a decrease in tax rates.
43) An example of a negative demand shock is
A. a decrease in the money supply.
B. a decrease in government spending.
C. an increase in foreign export demand.
D. a decrease in the price of imported oil.
E. a decrease in tax rates.

44) An example of a negative demand shock is

A. a decrease in the money supply.
B. a decrease in government spending.
C. an increase in foreign export demand.
D. a decrease in the price of imported oil.
E. a decrease in the money supply and a decrease in government spending.
45) During which stage of the industry life cycle would a firm experience stable
growth in sales?
A. Consolidation
B. Relative Decline
C. Maturity
D. Start-up
E. Stabilization
46) Sector rotation
A. should always be carried out.
B. is never worthwhile.
C. is shifting the portfolio more heavily toward an industry or sector that is
expected to perform well in the future.
D. can be implemented costlessly.
E. None of these is correct.
47) According to Michael Porter, there are five determinants of competition. An
example of _____ is when new entrants to an industry put pressure on prices
and profits.
A. Threat of Entry
B. Rivalry between Existing Competitors
C. Pressure from Substitute Products
D. Bargaining power of Buyers
E. Bargaining power of Suppliers
48) According to Michael Porter, there are five determinants of competition. An
example of _____ is when competitors seek to expand their share of the market.
A. Threat of Entry
B. Rivalry between Existing Competitors
C. Pressure from Substitute Products
D. Bargaining power of Buyers
E. Bargaining power of Suppliers
49) According to Michael Porter, there are five determinants of competition. An
example of _____ is when the availability limits the prices that can be charged
to customers.
A. Threat of Entry
B. Rivalry between Existing Competitors
C. Pressure from Substitute Products
D. Bargaining power of Buyers
E. Bargaining power of Suppliers
50) According to Michael Porter, there are five determinants of competition. An
example of _____ is when a buyer purchases a large fraction of an industry's
output and can demand price concessions.
A. Threat of Entry
B. Rivalry between Existing Competitors
 C. Pressure from Substitute Products
D. Bargaining power of Buyers
E. Bargaining power of Suppliers
51) Assume the U. S. government was to decide to increase the budget deficit.
This action will most likely cause __________ to increase.
A. interest rates
B. government borrowing
C. unemployment
D. both interest rates and government borrowing
E. None of these is correct.
52) An example of a defensive industry is _______.
A. the automobile industry
B. the tobacco industry
C. the food industry
D. both the automobile industry and the tobacco industry
E. both the tobacco industry and the food industry
53)