答案和详解如下： 86 Correct answer is A “Efficient Capital Markets,” Frank K. Reilly and Keith C. Brown
2008 Modular Level I, Vol. 5, pp. 83-84
Study Session 14-54-d
define behavioral finance and describe overconfidence bias, confirmation bias, and escalation bias
Escalation bias refers to the investor behavior of putting more money into a failure that they feel responsible for rather than into a success. This leads to the practice of “averaging down” by viewing the additional purchase as a “bargain” rather than considering the initial purchase as a mistake and selling the stock. 87 Correct answer is C “Cost of Capital,” Yves Courtois, Gene C. Lai, and Pamela p. Peterson
2008 Modular Level I, Vol. 4, pp. 54-55
“An Introduction to Security Valuation: Part II,” Frank K. Reilly and Keith C. Brown
2008 Modular Level I, Vol. 5, pp. 196-197
Study Sessions 11-45-h, 14-60-e
calculate and interpret the cost of equity capital using the capital asset pricing model approach, the dividend discount model approach, and the bond-yield-plus risk-premium approach;
estimate the implied dividend growth rate, given the components of the required return on equity and incorporating the earnings retention rate and current stock price
V0 = D1 / (k - g); $40 = $2 / (0.12 - g); g = 7%; g = ROE x RR; RR = 7 / 10 = 0.70;
Payout Ratio = 1 - RR = 1 - 0.70 = 0.30 = 30%. 88 Correct answer is C “Organization and Functioning of Securities Markets,” Frank K. Reilly and Keith C. Brown
2008 Modular Level I, Vol. 5, pp. 7-8
Study Session 13-52-a
describe the characteristics of a well-functioning securities market
Liquidity refers to the ability to buy or sell an asset quickly and at a known price. Price continuity is a component of liquidity which in turn requires market depth. The distracters in A, B, and D are characteristics of a good market, just as liquidity, but not most closely associated with, or as components of, liquidity. 89 Correct answer is B “Market Efficiency and Anomalies,” Vijay Singal
2008 Modular Level I, Vol. 5, pp. 100-107
Study Session 13-55-d
explain why a mispricing may persist and why valid anomalies may not be profitable
The persistent realization of abnormal returns is referred to as an anomaly and survivorship bias is a source of unreliability of an anomaly. 90 Correct answer is B “An Introduction to Asset Pricing Models,” Frank K. Reilly and Keith C. Brown
2008 Modular Level I, Vol. 4, pp. 263-265
“An Introduction to Security Valuation: Part II,” Frank K. Reilly and Keith C. Brown
2008 Modular Level I, Vol. 5, pp. 180-181
Study Sessions 12-51-e, 14-60-b
calculate, using the SML, the expected return on a security and evaluate whether the security is overvalued, undervalued, or properly valued;
calculate and interpret the value both of a preferred stock and a common stock using the dividend discount model (DDM)
Most recent dividend = 2.00 (0.6) = 1.20
ks = 4.20 + 5.60(1.50) = 12.60%;
V = 1.20(1.051) / (0.126 - 0.051) = $16.82 | 
发表于 2008-11-9 13:33
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