Question 76
Hans Klein, CFA, is responsible for capital projects at Vertex Corporation. Klein and his assistant, Karl Schwartz, were discussing various issues about capital budgeting and Schwartz made a comment that Klein believed to be incorrect. Which of the following is most likely the incorrect statement made by Schwartz?
A) “Project sequencing refers to accepting a project today, that if profitable, will create the opportunity for another profitable project at a future date.”
B) “The weighted average cost of capital (WACC) should be based on market values for the firm’s outstanding securities.” C) “It is not always appropriate to use the firm’s marginal cost of capital when determining the net present value of a capital project.” D) “Net present value (NPV) and internal rate of return (IRR) result in the same rankings of potential capital projects.” Question 77
Cintax Industries is concerned because, relative to industry averages, its cash conversion cycle is high and its inventory turnover is low. These conditions are most likely the case because:
A) Cintax’s average days of payables are relatively high.
B) Cintax’s average days of inventory are relatively high. C) Cintax’s average days of receivables are relatively low. D) Cintax has higher than average credit purchases of raw materials. Question 78
In the U.S., which of the following short-term investment alternatives receives beneficial corporate tax treatment on the income it generates?
A) U.S. Treasury bills.
B) Short-term federal agency securities. C) Repurchase agreements. D) Adjustable-rate preferred stock. Question 79
Given a set of risky assets, a Markowitz efficient frontier:
A) can be calculated from the assets’ expected returns and the correlations of returns for each pair of assets.
B) includes all portfolios that reduce the risk level compared to holding a single asset. C) consists of the portfolios that provide the lowest risk for every level of expected return. D) cannot be generated unless one of the assets has a beta of zero.
Question 80
An investment policy statement should most appropriately specify the:
A) manager’s analysis of financial market conditions.
B) securities selected for the portfolio. C) rebalancing needs of the portfolio. D) investor’s objectives and constraints.
[此贴子已经被作者于2008-11-8 17:56:24编辑过] | 
发表于 2008-5-26 13:22
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