Question 91 Given the following information, what is the required rate of return on Bin Co? ♣ inflation premium = 3% ♣ real risk-free rate = 2% ♣ Bin Co. beta = 1.3 ♣ market risk premium = 4% A) 16.7%. B) 7.6%. C) 6.3%. D) 10.2%. Question 92 Which of the following statements concerning market efficiency is least accurate? A) If weak-form market efficiency holds, technical analysis cannot be used to earn abnormal returns over the long-run. B) Tests of the semi-strong form of the EMH require that security returns be risk-adjusted using a market model. C) Market efficiency assumes that individual market participants correctly estimate asset prices. D) An informationally efficient capital market is one in which security prices adjust rapidly and completely to new information. Question 93 Which of the following statements regarding how structural changes may affect industries is least accurate? A) Changes in politics and regulation tend to affect the economy as a whole rather than particular industries. B) The baby boom generation created a large consumer group which has influenced spending and savings
patterns. C) Technology has changed both the content and delivery of education. D) The retailing industry has been significantly affected by the development of the Internet. Question 94 The yield on a company’s 7.5%, $50 par preferred stock is 6%. The value of the preferred stock is closest to: A) $12.50. B) $62.50. C) $28.75. D) $50.00. Question 95 Which of the following statements is least accurate with regard to the tests for the three forms of the efficient market hypothesis? A) The historical performance of professional money managers supports the strong form of the EMH. B) Early tests of the semi-strong form measured abnormal returns as the difference between a stock's actual return and the market return. C) Results of trading rule tests, such as filter rules, support the semi-strong form of the EMH. D) The tests for the semi-strong form EMH give mixed results. Time-series tests such as dividend yield and default spread reject the semi-strong form EMH and event studies on stock splits and announcements of accounting changes support it. | 
发表于 2008-11-6 16:38
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