Financial literacy

Which of the following is unlikely to be a problem for mutual fund managers? (Ch

Which of the following is unlikely to be a problem for mutual fund managers? (Choose the false answer.) A) Being forced to sell portfolio assets at low prices if too many sharehol…

Which of the following is unlikely to be in a tractive and effective way to redu

Which of the following is unlikely to be in a tractive and effective way to reduce the design assemble marketing and other cost of a UAV drone and help with cheese sizable competi…

Which of the following is usually not helpful for determining the existence of a

Which of the following is usually not helpful for determining the existence of a merger fraud? Question 2 options: Understanding the context of the merger. Determining if the merg…

Which of the following is usually the lowest? after-tax cost of debt before-tax

Which of the following is usually the lowest? after-tax cost of debt before-tax cost of debt cost of preferred stock cost of common stock marginal cost of capital To determine a f…

Which of the following is/are true? a. Most of the unsystematic risk is removed

Which of the following is/are true?     a. Most of the unsystematic risk is removed by the time a portfolio contains 30 stocks.     b. Two points on the Characteristic Line are th…

Which of the following items cannot be found on a firm\'s balance sheet under cu

Which of the following items cannot be found on a firm's balance sheet under current liabilities? Accounts payable. Short-term notes payable to the bank. Accrued wages. Cost of go…

Which of the following makes this a true statement? Ideally, when searching for

Which of the following makes this a true statement? Ideally, when searching for a beta for a new line of business. A.) One could fine other firms engaged in the proposed new line …

Which of the following makes this a true statement? Ideally, when searching for

Which of the following makes this a true statement? Ideally, when searching for a beta for a new line of business one could find other firms engaged in the proposed new line of bu…

Which of the following may be responsible for a fair share of the perennial \"pr

Which of the following may be responsible for a fair share of the perennial "project cost overruns"? Rapidly rising inflation Delays in obtaining contracts and permits Lack of raw…

Which of the following mechanisms helps to align management interests with those

Which of the following mechanisms helps to align management interests with those of shareholders? a. A well designed compensation package. b. An efficient managerial labor market.…

Which of the following mechanisms would be most likely to help motivate managers

Which of the following mechanisms would be most likely to help motivate managers to act in the best interests of shareholders? a. Take actions that reduce the possibility of a hos…

Which of the following mechanisms would be most likely to helpmotivate managers

Which of the following mechanisms would be most likely to helpmotivate managers to act in the best interest of shareholders?       a. Decrease the use of restrictive covenantsin b…

Which of the following multilateral institutions provides long-term development

Which of the following multilateral institutions provides long-term development loans to governments of developing nations? Select one: A. The Bank for International Settlements (…

Which of the following one-year, $1,000 bank loans offers the lowest effective a

Which of the following one-year, $1,000 bank loans offers the lowest effective annual rate? a. A loan with an APR of 6.0%, compounded monthly. b. A loan with an APR of 6.0%, compo…

Which of the following options is most profitable? A savings account that pays 1

Which of the following options is most profitable? A savings account that pays 12% annual compounding interest rate. A savings account that pays 11% semiannual compounding interes…

Which of the following options on corn is least valuable? Assume the variance of

Which of the following options on corn is least valuable? Assume the variance of return and the risk free rate are the same in all cases. a)A call option with a strike price of $4…

Which of the following options on corn is most valuable? Assume the variance of

Which of the following options on corn is most valuable? Assume the variance of return and the risk free rate are the same in all cases. The call option with a strike price of $3 …

Which of the following pairs of portfolios have the same payoff? (A) a risk-free

Which of the following pairs of portfolios have the same payoff? (A) a risk-free bond that promises $100 in three months; (B) a short call and short put both struck at $100 with e…

Which of the following parity conditions is (are)correct? a. The interest-rate p

Which of the following parity conditions is (are)correct? a. The interest-rate parity theory states that the forwardpremium/discount should be equal and opposite in size to thenat…

Which of the following party relationships says that the forward premium (discou

Which of the following party relationships says that the forward premium (discount) should equal the interest differential between two countries? A) purchasing power parity B) int…

Which of the following pieces of evidence would by itself allow a judgment about

Which of the following pieces of evidence would by itself allow a judgment about the regressivity or progressivity of a tax? a. On average, high income families have higher tax bi…

Which of the following problems was a reason for bank panics prior to the establ

Which of the following problems was a reason for bank panics prior to the establishment of the Federal Reserve bank: a. Currency was not uniform in value. b. Currency was not back…

Which of the following professional advisory services may charge a fee for you t

Which of the following professional advisory services may charge a fee for you to access the more detailed information that may be needed to evaluate a stock investment? Question …

Which of the following projects would you invest in? Project X has an expected r

Which of the following projects would you invest in? Project X has an expected return of 14% and a standard deviation of 10%. Project Y has an expected return of 13% and a standar…

Which of the following properly describes the present value of an ordinary annui

Which of the following properly describes the present value of an ordinary annuity? The best definition of risk averse is Given a two-year loan of $50,000 and an annual interest r…

Which of the following property interests qualify for the marital deduction from

Which of the following property interests qualify for the marital deduction from the deceased spouse’s gross estate?  D = decedent; SS = surviving spouse; FS= former spouse 1. The…

Which of the following provides the greatest annual yield? Answer 14.7% compound

Which of the following provides the greatest annual yield? Answer 14.7% compounded monthly. 14.6% compounded weekly. 14.9% compounded semi-annually. 14.8% compounded quarterly. 15…

Which of the following questions are False? 1. If changes in the bankruptcy code

Which of the following questions are False? 1. If changes in the bankruptcy code make bankruptcy lesscostly to corporations, then this would likely reduce the debtradio of the ave…

Which of the following rankings, from lowest to highest, is highly accurate? cos

Which of the following rankings, from lowest to highest, is highly accurate? cost of debt, cost of preferred stock, cost of common stock, cost of retained earnings cost of common …

Which of the following reflects a hedge of net payables in Egyptian pounds by a

Which of the following reflects a hedge of net payables in Egyptian pounds by a U.S. firm?? ?Borrow U.S. dollars, convert them to pounds, and invest them in a Egyptian pound depos…

Which of the following regarding loan commitments is false? a. Loan commitments

Which of the following regarding loan commitments is false? a. Loan commitments are an off balance sheet activity, however it gets recorded on balance sheet when a business draws …

Which of the following regarding loan commitments is false? a. Loan commitments

Which of the following regarding loan commitments is false? a. Loan commitments are an off balance sheet activity, however it gets recorded on balance sheet when a business draws …

Which of the following regulatory restrictions is uniquely applicable for \"crit

Which of the following regulatory restrictions is uniquely applicable for "critically undercapitalized" banks: Cannot accept broker-placed deposits without regulatory approval Mus…

Which of the following relationships between compound interest factors is not co

Which of the following relationships between compound interest factors is not correct? Single payment compound amount factor and single payment present worth factor are reciprocal…

Which of the following relationships is true regarding the costs of issuing the

Which of the following relationships is true regarding the costs of issuing the following securities? A) Common stock > preferred stock > bonds B) Preferred stock > commo…

Which of the following relationships is true regarding thecosts of issuing the f

Which of the following relationships is true regarding thecosts of issuing the following securities? a. common stock > bonds > preferred stock b. preferred stock > common…

Which of the following represent problems encountered when comparing the financi

Which of the following represent problems encountered when comparing the financial statements of two separate entities? I. Either one or both of the firms may be conglomerates and…

Which of the following represents a SHORTCOMING of the net present value rule of

Which of the following represents a SHORTCOMING of the net present value rule of capital budgeting? It fails to consider new information once the project is underway It cannot be …

Which of the following represents a Type I error for the null and alternative hy

Which of the following represents a Type I error for the null and alternative hypotheses H0: $3,200 and Ha: > $3,200, where is the average amount of money in a savings account …

Which of the following represents an attempt to measure thenet results of the fi

Which of the following represents an attempt to measure thenet results of the firm's operations (revenues versus expenses)over a given time period? a. Balance Sheet b. Statement o…

Which of the following represents the correct ordering of standard deviation of

Which of the following represents the correct ordering of standard deviation of returns over the period of 1926 to 2005 from highest to lowest standard deviation of returns? a. tr…

Which of the following represents the correct ordering ofstandard deviation of r

Which of the following represents the correct ordering ofstandard deviation of returns over the period 1926 to 2000 (fromhighest to lowest standard deviation of returns)? a. T-bil…

Which of the following responsibility centers will use a segmented income statem

Which of the following responsibility centers will use a segmented income statement as an evaluation tool? cost center revenue center profit center Which of the following statemen…

Which of the following rights retained by a donor who gifts property during his

Which of the following rights retained by a donor who gifts property during his or her lifetime will result in the inclusion of such property in the gross estate of the donor-dece…

Which of the following risk types can be diversified away by adding stocks to a

Which of the following risk types can be diversified away by adding stocks to a portfolio? Inflation risk Unique risk Interest rate risk Market risk What are free cash flows (FCF)…

Which of the following risks would not be faced by investors in domestic bonds?

Which of the following risks would not be faced by investors in domestic bonds? Answer credit (or default) risk interest rate risk reinvestment rate (or rollover) risk exchange ra…

Which of the following rules is CORRECT for capital budgeting analysis? a. The i

Which of the following rules is CORRECT for capital budgeting analysis? a. The interest paid on funds borrowed to finance a project must be included in estimates of the project’s …

Which of the following scenarios have the potential to cause problems for the in

Which of the following scenarios have the potential to cause problems for the increasing cost of funds algorithm with indivisible assets? Question 5 options: There are three sourc…

Which of the following scenarios would cause problems for the algorithm for find

Which of the following scenarios would cause problems for the algorithm for finding the optimal solution to a capital budgeting problem? Question 6 options: There are fewer than f…

Which of the following scenarios would create problems, if you are trying to det

Which of the following scenarios would create problems, if you are trying to determine which of two projects to accept using the internal rate of return? I. one of the projects ha…