标题: Reading 56: An Introduction to Security Valuation LOSe习题精 [打印本页]
作者: honeycfa 时间: 2010-4-22 22:33 标题: [2010]Session 14-Reading 56: An Introduction to Security Valuation LOSe习题精
LOS e, (Part 1): Explain the components of an investor's required rate of return (i.e., the real risk-free rate, the expected rate of inflation, and a risk premium).
Given the following information, what is the required rate of return on Bin Co?
- inflation premium = 3%
- real risk-free rate = 2%
- Bin Co. beta = 1.3
- market risk premium = 4%
Use the capital asset pricing model (CAPM) to find the required rate of return. The approximate risk-free rate of interest is 5% (2% real risk-free rate + 3% inflation premium).
k = 5% + 1.3(4%) = 10.2%.
作者: honeycfa 时间: 2010-4-22 22:33
If the risk-free rate is 5%, the market rate is 12%, and the beta of a stock is 0.5, what would happen to the required rate of return if the inflation premium increased by 2%? It would:
k0 = 5 + 0.5(12 – 5) = 8.5; k1 = 7 + 0.5(14 – 7) = 10.5
作者: honeycfa 时间: 2010-4-22 22:33
Which of the following statements concerning security valuation is least accurate? The:
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required rate of return for the dividend discount model is influenced by inflation. | |
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real risk-free rate is the nominal risk-free rate times the expected inflation rate. | |
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dividend discount model assumes that the required rate of return is greater than the growth rate of the company's dividend. | |
The real risk-free rate equals (1 + nominal risk-free rate) / (1 + expected inflation rate) minus one.
作者: honeycfa 时间: 2010-4-22 22:34
If the real risk-free rate is 5%, and the expected rate of inflation is 1%, what is the estimated nominal risk-free rate?
The nominal risk free rate = (1 + Real risk-free rate)(1+ Expected Inflation) – 1, (1.05) x (1.01)-1 = 6.05%.
作者: honeycfa 时间: 2010-4-22 22:34
If expected inflation increases, all else equal, the:
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nominal risk-free rate will decrease. | |
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real market risk premium will increase. | |
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nominal risk-free rate will increase. | |
The nominal risk free rate is a function of the real risk-free rate and expected inflation:
Nominal risk free rate = (1 + real risk-free rate)(1 + expected inflation) – 1
If expected inflation increases, but the real risk-free rate stays the same, the nominal risk-free rate will increase.
作者: honeycfa 时间: 2010-4-22 22:34
The real risk-free rate is approximately equal to:
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the ratio of the nominal risk-free rate to the real expected market risk premium. | |
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the nominal risk-free rate minus expected inflation. | |
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the nominal risk-free rate plus expected inflation. | |
The nominal risk free rate is a function of the real risk-free rate and expected inflation:
nominal risk free rate = (1 + real risk-free rate)(1 + expected inflation) – 1
@ real risk-free rate + expected inflation
Therefore the real risk-free rate is approximately equal to:
nominal risk-free rate – expected inflation.
作者: honeycfa 时间: 2010-4-22 22:34
The nominal risk-free rate is a function of the real risk-free rate and:
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the nominal expected market risk premium. | |
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the real expected market risk premium. | |
The nominal risk-free rate is a function of the real risk-free rate and expected inflation:
nominal risk free rate = (1 + real risk-free rate)(1 + expected inflation) – 1
作者: honeycfa 时间: 2010-4-22 22:35
The nominal risk-free rate is equal to:
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one plus the real risk-free rate times one plus expected inflation, minus one. | |
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one plus the real risk-free rate times one plus expected inflation. | |
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C) |
the real risk-free rate minus expected inflation. | |
The nominal risk-free rate is a function of the real risk-free rate and expected inflation:
nominal risk free rate = (1 + real risk-free rate)(1 + expected inflation) – 1
Note that the nominal rate is frequently estimated by summing the real rate and the rate of expected inflation.
作者: honeycfa 时间: 2010-4-22 22:35
Evidence that a firm has high business risk would be provided by its volatile:
Business risk is one component of k, the required rate of return.
作者: honeycfa 时间: 2010-4-22 22:35
LOS e, (Part 2): Discuss the risk factors to be assessed in determining an equity risk premium for use in estimating the required return for the investment in each country.
The equity risk premium for investing in foreign securities considers which of the following types of risk:
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company-specific risk. | |
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The equity risk premium for foreign investments includes business, financial, liquidity, exchange rate, and country risk.
作者: honeycfa 时间: 2010-4-22 22:35
Which of the following statements regarding an equity risk premium for foreign investments is most accurate?
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Country risk arises from expected economic and political events. | |
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Exchange rate risk is relatively small and can be ignored. | |
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Firms in different countries assume significantly different financial risk. | |
Country risk arises from unexpected not expected economic and political events. Exchange rate risk must always be taken into account.
作者: honeycfa 时间: 2010-4-22 22:36
Which of the following is least likely a risk factor in an equity risk premium for foreign investments?
Technology risk is not considered a relevant risk factor in assessing a country’s equity risk premium. The relevant factors include business risk, financial risk, liquidity risk, exchange rate risk, and country risk.
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