Download PASSEMALL Prep app now
Scan QR code or get instant email to install app
Question:
Order matching rules in a pure auction market may be based on price, display, or time precedence.
Comments
Your email address will not be published. Required fields are marked *
Comment *
Name*
Email*
URL
Save my name, email, and website in this browser for the next time I comment.
The value per share is closest to:
$14.39.
A limit sell order placed above the best offer is most likely:
Referred to as behind the market.
Which of the following types of market indices has a contrarian effect on portfolio weights?
Fundamental weighting
The type of equity index most likely to require rebalancing is a(n):
equal-weighted index.
Ian Lance, CFA, is discussing short selling with a client and states, "The short seller must pay any dividend to the lender of the stock. In addition, the short seller must provide collateral to the brokerage house." Has Lance stated the short seller's obligations accurately?
Both of these statements are accurate.
An analyst gathered the following information regarding an equity market index. The index was created on January 1, 2009 at which time its value was set to 1,000. It consists of the following 3 securities: Given that dividends are paid at the end of the year and that the price return on the index for 2009 was 8.25%, the value of the price return index at the end of 2010 is closest to:
1,108.
The type of equity security that gives its owners the right to vote the shares of, and receive dividends from, a foreign company is best described as a:
sponsored depository receipt.
A high yield bond fund states that through active management, the fund’s return has outperformed an index of Treasury securities by 4% on average over the past five years. As a performance benchmark for this fund, the index chosen is:
inappropriate, because the index does not reflect the actual bonds in which the fund invests.
Which of the following classifications of firms is least likely to comprise cyclical firms?
Telecommunications.
An analyst gathered the following data about a company:•A historical earnings retention rate of 60% that is projected to continue into the future. •A sustainable return on equity of 10%.•A beta of 1.0. •The nominal risk-free rate is 5%.•The expected market return is 10%.If next year’s EPS is $2 per share, what value should be estimated for this stock?
$20.00.
Martin Gomez holds 100 shares of each of the stocks in a price-weighted index and reinvests cash dividends in additional shares. Assuming there are no stock splits, stock dividends, or changes in the makeup of the index, how will Gomez’s portfolio return compare with the price return of the index if the low-priced index stocks outperform the high-priced index stocks?
Gomez’s portfolio return will be higher.
Which of the following statements about short selling is least accurate?
A short seller loses if the price of the stock sold short decreases.
In the industry life cycle model, the threat of new entry into an industry is greatest during the:
growth stage.
Pam Robers, CFA, is performing a valuation analysis on the common stock of Allstare Inc. The stock’s beta is 1.1, the risk-free rate is 5%, and the market risk premium is expected to be 8%. Allstare’s ROE is expected to be constant at 18%, and its dividend payout ratio has been fairly constant over time at 40%. The forward-earnings multiplier that Robers should use to estimate the current value of the shares is closest to:
13.
Comments