Q1. An investor expects a stock currently selling for $20 per share to increase to $25 by year-end. The dividend last year was $1 but he expects this year's dividend to be $1.25. What is the expected holding period return on this stock?

A)    31.25%.

B)    24.00%.

C)    28.50%.

Q2. An investor is considering investing in Tawari Company for one year. He expects to receive $2 in dividends over the year and feels he can sell the stock for $30 at the end of the year. To realize a return on the investment over the year of 14%, the price the investor would pay for the stock today is closest to:

A)   $28.

B)   $29.

C)   $32.

Q3. An investor buys a 10 3/8 treasury note for 103 11/32 and sells it one year later for 101 13/32. What is the holding period yield?

A)   8.14%.

B)   8.16%.

C)   8.22%.

Q4. A bond that pays $100 in interest each year was purchased at the beginning of the year for $1,050 and sold at the end of the year for $1,100. An investor's holding period return is:

A)   10.5%.

B)   10.0%.

C)   14.3%.

Q5. When Annette Famigletti hears that a baseball-loving friend is coming to visit, she purchases two premium-seating tickets for $45 per ticket for an evening game. As the date of the game approaches, Famigletti’s friend telephones and says that his trip has been cancelled. Fortunately for Famigletti, the tickets she holds are in high demand as there is chance that the leading Major League Baseball hitter will break the home run record during the game. Seeing an opportunity to earn a high return, Famigletti puts the tickets up for sale on an internet site. The auction closes at $150 per ticket. After paying a 10% commission to the site (on the amount of the sale) and paying $8 total in shipping costs, Familgletti’s holding period return is approximately:

A)   182%.

B)   191%.

C)   202%.

Q1. An investor expects a stock currently selling for $20 per share to increase to $25 by year-end. The dividend last year was $1 but he expects this year's dividend to be $1.25. What is the expected holding period return on this stock?

A)    31.25%.

B)    24.00%.

C)    28.50%.

Correct answer is A)

Return = [dividend + (end − begin)] / beginning price

R = [1.25 + (25 − 20)] / 20 = 6.25 / 20 = 0.3125

Q2. An investor is considering investing in Tawari Company for one year. He expects to receive $2 in dividends over the year and feels he can sell the stock for $30 at the end of the year. To realize a return on the investment over the year of 14%, the price the investor would pay for the stock today is closest to:

A)   $28.

B)   $29.

C)   $32.

Correct answer is A)

HPR = [Dividend + (Ending price − Beginning price)] / Beginning price

0.14 = [2 + (30 − P)] / P

1.14P = 32 so P = $28.07

Q3. An investor buys a 10 3/8 treasury note for 103 11/32 and sells it one year later for 101 13/32. What is the holding period yield?

A)   8.14%.

B)   8.16%.

C)   8.22%.

Correct answer is B)

103 11/32 = 103.344% or $1,033.44 

101 13/32  = 101.406% or $1,014.06 

A coupon of 10 3/8 = 10.375% or $103.75

The rate of return equals the [(ending cash flows − the beginning cash flows) / beginning price] × 100 =

 [(1014.06 + 103.75 − 1033.44) / 1033.44] × 100 = 8.16%

Q4. A bond that pays $100 in interest each year was purchased at the beginning of the year for $1,050 and sold at the end of the year for $1,100. An investor's holding period return is:

A)   10.5%.

B)   10.0%.

C)   14.3%.

Correct answer is C)

Input into your calculator: N = 1; FV = 1,100; PMT = 100; PV = -1,050; CPT → I/Y = 14.29

Q5. When Annette Famigletti hears that a baseball-loving friend is coming to visit, she purchases two premium-seating tickets for $45 per ticket for an evening game. As the date of the game approaches, Famigletti’s friend telephones and says that his trip has been cancelled. Fortunately for Famigletti, the tickets she holds are in high demand as there is chance that the leading Major League Baseball hitter will break the home run record during the game. Seeing an opportunity to earn a high return, Famigletti puts the tickets up for sale on an internet site. The auction closes at $150 per ticket. After paying a 10% commission to the site (on the amount of the sale) and paying $8 total in shipping costs, Familgletti’s holding period return is approximately:

A)   182%.

B)   191%.

C)   202%.

Correct answer is B)

The holding period return is calculated as: (ending price − beginning price +/- any cash flows) / beginning price. Here, the beginning and ending prices are given. The other cash flows consist of the commission of $30 (0.10 × 150 × 2 tickets) and the shipping cost of $8 (total for both tickets). Thus, her holding period return is: (2 × 150 − 2 × 45 − 30 − 8) / (2 × 45) = 1.91, or approximately 191%.

Q1-3答案和详解如下：

Q1. An investor expects a stock currently selling for $20 per share to increase to $25 by year-end. The dividend last year was $1 but he expects this year's dividend to be $1.25. What is the expected holding period return on this stock?

A)    31.25%.

B)    24.00%.

C)    28.50%.

Correct answer is A)

Return = [dividend + (end − begin)] / beginning price

R = [1.25 + (25 − 20)] / 20 = 6.25 / 20 = 0.3125

Q2. An investor is considering investing in Tawari Company for one year. He expects to receive $2 in dividends over the year and feels he can sell the stock for $30 at the end of the year. To realize a return on the investment over the year of 14%, the price the investor would pay for the stock today is closest to:

A)   $28.

B)   $29.

C)   $32.

Correct answer is A)

HPR = [Dividend + (Ending price − Beginning price)] / Beginning price

0.14 = [2 + (30 − P)] / P

1.14P = 32 so P = $28.07

Q3. An investor buys a 10 3/8 treasury note for 103 11/32 and sells it one year later for 101 13/32. What is the holding period yield?

A)   8.14%.

B)   8.16%.

C)   8.22%.

Correct answer is B)

103 11/32 = 103.344% or $1,033.44 

101 13/32  = 101.406% or $1,014.06 

A coupon of 10 3/8 = 10.375% or $103.75

The rate of return equals the [(ending cash flows − the beginning cash flows) / beginning price] × 100 =

 [(1014.06 + 103.75 − 1033.44) / 1033.44] × 100 = 8.16%

Q4-5答案和详解如下：

Q4. A bond that pays $100 in interest each year was purchased at the beginning of the year for $1,050 and sold at the end of the year for $1,100. An investor's holding period return is:

A)   10.5%.

B)   10.0%.

C)   14.3%.

Correct answer is C)

Input into your calculator: N = 1; FV = 1,100; PMT = 100; PV = -1,050; CPT → I/Y = 14.29

Q5. When Annette Famigletti hears that a baseball-loving friend is coming to visit, she purchases two premium-seating tickets for $45 per ticket for an evening game. As the date of the game approaches, Famigletti’s friend telephones and says that his trip has been cancelled. Fortunately for Famigletti, the tickets she holds are in high demand as there is chance that the leading Major League Baseball hitter will break the home run record during the game. Seeing an opportunity to earn a high return, Famigletti puts the tickets up for sale on an internet site. The auction closes at $150 per ticket. After paying a 10% commission to the site (on the amount of the sale) and paying $8 total in shipping costs, Familgletti’s holding period return is approximately:

A)   182%.

B)   191%.

C)   202%.

Correct answer is B)

The holding period return is calculated as: (ending price − beginning price +/- any cash flows) / beginning price. Here, the beginning and ending prices are given. The other cash flows consist of the commission of $30 (0.10 × 150 × 2 tickets) and the shipping cost of $8 (total for both tickets). Thus, her holding period return is: (2 × 150 − 2 × 45 − 30 − 8) / (2 × 45) = 1.91, or approximately 191%.

Q4-5答案和详解如下：

Q4. A bond that pays $100 in interest each year was purchased at the beginning of the year for $1,050 and sold at the end of the year for $1,100. An investor's holding period return is:

A)   10.5%.

B)   10.0%.

C)   14.3%.

Correct answer is C)

Input into your calculator: N = 1; FV = 1,100; PMT = 100; PV = -1,050; CPT → I/Y = 14.29

Q5. When Annette Famigletti hears that a baseball-loving friend is coming to visit, she purchases two premium-seating tickets for $45 per ticket for an evening game. As the date of the game approaches, Famigletti’s friend telephones and says that his trip has been cancelled. Fortunately for Famigletti, the tickets she holds are in high demand as there is chance that the leading Major League Baseball hitter will break the home run record during the game. Seeing an opportunity to earn a high return, Famigletti puts the tickets up for sale on an internet site. The auction closes at $150 per ticket. After paying a 10% commission to the site (on the amount of the sale) and paying $8 total in shipping costs, Familgletti’s holding period return is approximately:

A)   182%.

B)   191%.

C)   202%.

Correct answer is B)

The holding period return is calculated as: (ending price − beginning price +/- any cash flows) / beginning price. Here, the beginning and ending prices are given. The other cash flows consist of the commission of $30 (0.10 × 150 × 2 tickets) and the shipping cost of $8 (total for both tickets). Thus, her holding period return is: (2 × 150 − 2 × 45 − 30 − 8) / (2 × 45) = 1.91, or approximately 191%.

Q1. The covariance:

A)   must be between -1 and +1.

B)   can be positive or negative.

C)   must be positive.

Correct answer is B)         

Cov(a,b) = σ_aσ_bρ_a,b. Since ρ_a,b can be positive or negative, Cov(a,b) can be positive or negative.

Q2. With respect to the units each is measured in, which of the following is the most easily directly applicable measure of dispersion? The:

A)    covariance.

B)    variance.

C)    standard deviation.

Correct answer is C)

The standard deviation is in the units of the random variable itself and not squared units like the variance. The covariance would be measured in the product of two units of measure.

Q3. Personal Advisers, Inc., has determined four possible economic scenarios and has projected the portfolio returns for two portfolios for their client under each scenario. Personal’s economist has estimated the probability of each scenario as shown in the table below. Given this information, what is the covariance of the returns on Portfolio A and Portfolio B?

A)   0.890223.

B)   0.002019.

C)   0.001898.

Correct answer is C)

Q4. Given Cov(X,Y) = 1,000,000. What does this indicate about the relationship between X and Y?

A)  It is strong and positive.

B)  It is weak and positive.

C)  Only that it is positive.

Correct answer is C)

A positive covariance indicates a positive linear relationship but nothing else. The magnitude of the covariance by itself is not informative with respect to the strength of the relationship.

Q5. Which of the following statements is least accurate regarding covariance?

A)   Covariance can only apply to two variables at a time.

B)   Covariance can exceed one.

C)   A covariance of zero rules out any relationship.

Correct answer is C)

A covariance only measures the linear relationship. The covariance can be zero while a non-linear relationship exists. Both remaining statements are true.

[此贴子已经被作者于2009-7-14 17:30:08编辑过]

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