Question 91
An investor predicts that ABC, Inc., will have dividends next year of $10 per share and earnings of $12 per share. ABC, Inc., has an expected growth rate in dividends of 1%. If the firm's beta is 1.25, the risk-free rate is 6%, and the expected market return is 10%, ABC, Inc.'s earnings multiplier is closest to:
A) 8.33. B) 9.26. C) 12.00. D) 0.92. Question 92 Which one of the following alternatives most accurately assigns the attractive investment opportunities that typically occur within the indicated stage of the business cycle? Business Cycle Stage Investment Opportunities A) Late expansion Real estate and interest-sensitive stocks B) Early expansion Stocks and bonds C) Recovery Commodities and cyclicals D) Recession Commodities and bonds Question 93
Which of the following statements most accurately describes the strong form of the efficient market hypothesis (EMH) and its implication for trading strategies? The strong form states that:
A) stock prices fully reflect all market information and that investors cannot achieve excess returns using technical analysis. B) security prices rapidly adjust to the arrival of all new public information and that investors cannot achieve abnormal returns using fundamental analysis. C) stock prices already reflect all information from public and private sources, which has resulted in professional money managers not being able to outperform a simple buy-and-hold strategy. D) security prices already include all market and nonmarket public information and that event studies are used to test this form of the EMH. Question 94 A stock market index is composed of three stocks. Their beginning and ending values in a recent time period are as follows: Stock | Number of shares | Beginning value | Ending value | Percent change | X | 100 | 160 | 136 | -15% | Y | 100 | 80 | 100 | +25% | Z | 1,000 | 60 | 66 | +10% |
None of the stocks split during the period. The index that will have the smallest percentage increase is a(n):
A) price-weighted index. B) value-weighted index. C) unweighted index using the arithmetic mean. D) unweighted index using the geometric mean. Question 95
Which of the following least likely a valid rationale for using the price-to-sales (P/S) ratio? The P/S ratio:
A) tends to be less volatile than the price-to-earnings ratio. B) can be used for firms with negative earnings or book value. C) is less affected by different accounting practices than the price-to-earnings or price-to-book value ratios. D) emphasizes the earnings capability of a company.
[此贴子已经被作者于2008-11-8 13:51:10编辑过] | 
发表于 2008-5-26 12:19
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