1.The returns on an investment are least likely to be measured by:

A)   earnings per share.

B)   cash flows on a project.

C)   capital gains on an asset.

D)   coefficient of variation.

2.Which of the following is NOT a return on an investment?

A)   Rate of discount.

B)   Earnings.

C)   Dividends.

D)   Capital gains.

3.An investor buys a 6 percent coupon 5-year corporate bond priced to yield 7 percent. If rates remain unchanged when the investor sells the bond in 2 years, the investor will receive a:

A)   capital loss.

B)   dividend yield.

C)   total return equal to the coupon yield.

D)   capital gain.

答案和详解如下：

1.The returns on an investment are least likely to be measured by:

A)   earnings per share.

B)   cash flows on a project.

C)   capital gains on an asset.

D)   coefficient of variation.

The correct answer was D)

Coefficient of variation is a measure of risk. The various forms of investment returns can be measured in ways that include project cash flows, interest and dividend income, capital gains, or earnings.

2.Which of the following is NOT a return on an investment?

A)   Rate of discount.

B)   Earnings.

C)   Dividends.

D)   Capital gains.

The correct answer was A)

The return on an investment can take many forms, including earnings, cash flows, dividends, interest payments, or capital gains (increases in value) during a period.

3.An investor buys a 6 percent coupon 5-year corporate bond priced to yield 7 percent. If rates remain unchanged when the investor sells the bond in 2 years, the investor will receive a:

A)   capital loss.

B)   dividend yield.

C)   total return equal to the coupon yield.

D)   capital gain.

The correct answer was D)

Current yield of a bond = coupon payment / market price of bond. Bonds with a coupon lower than the prevailing interest rate will trade at a discount to par. If interest rates remain the same as the bond nears maturity the price will increase towards its par value. Thus, when they are sold, the investor will receive a capital gain.

3

capital gains= the increase in the price of an asset

债券价格上升 是capital gains

除了capital gains 应该还有interest gains

没有dividend