Question 86
Is the market’s ability to produce informationally efficient prices limited by the existence of transactions costs or by the risks associated with arbitrage strategies?
Transactions costs Risks A) Yes
No B) Yes
Yes C) No Yes D) No No Question 87 An industry has the following characteristics: - Sales growth is above the average growth rate of the economy.
- Profit margins have been high but are beginning to decline.
- New competitors are entering the market.
This industry is most likely in which phase of its life cycle?
A) Stabilization and market maturity. B) Rapid accelerating growth. C) Pioneering. D) Mature growth. Question 88
The stock of Universal Inc. is priced at $37 today and will pay a dividend of $2 one year from today. An analyst states that he believes Universal is currently undervalued by $3 per share, based on the infinite period constant-growth dividend discount model and a required rate of return of 12%. The analyst believes the stock will have a constant dividend growth rate of:
A) 6%. B) 8%. C) 7%. D) 9%. Question 89
A securities market exhibits internal efficiency if it offers:
A) timely and accurate information on the price and volume of past transactions. B) marketability and price continuity. C) prices that respond rapidly to new information. D) low transaction costs. Question 90
The required rate of return used in the dividend discount model is least likely to be affected by a change in the:
A) real risk-free rate of return. B) premium that compensates investors for risk. C) growth rate of earnings and dividends. D) expected rate of inflation.
[此贴子已经被作者于2008-11-8 13:30:39编辑过] | 
发表于 2008-5-26 12:17
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