[单项选择]An analyst does research about survivorship bias and its impact to measurement ratios. Hedge fund data bases and indexes that suffer from survivorship bias because of a failure to comply with performance presentation standards are most likely to overstate:（）
A. Sharpe ratios.
B. standard deviation of returns.
C. correlations with returns from common stocks.

[单项选择]An analyst is doing research about survivorship bias and its impact on measurement ratios. With a failure to comply with performance presentation standard, hedge fund databases and indexes, which are most likely to overstate:（）
A. Sharpe ratios.
B. standard deviation of retums.
C. correlations with returns from common stocks.

[单项选择]An analyst does research about calculating reinvestment income to achieve desired yield. An 8 percent coupon bond with seven years to maturity makes semiannual interest payment and has a maturity value of $1000. The bond is currently selling at $1112.96 to provide a 6 percent yield. The amount of reinvestment income required to generate this yield is closest to:（）
A. $110.48
B. $123.45
C. $226.44

[单项选择]An analyst does research about shareholders voting. With respect to shareholders voting for a candidate for the board of directors, which of the following is most likely to allow shareholders to direct their total voting rights to specific candidates（）
A. Statutory voting.
B. Cumulative voting.
C. Proxy voting.

[单项选择]An analyst does research about sustainable growth rate and gathers the following information about a company for 2011:
·Net income is $2 000 000
·Common dividends paid is $900000
·Average assets is $12000000
·Average liabilities is $3500000
The company's sustainable growth rate is closest to:（）
A. 9.17%
B. 10.59%
C. 12.94%

[单项选择]An analyst does research about discretionary fiscal policy. Challenges to implementing a discretionary fiscal stimulus in a timely manner are least likely to include that:
A. govemments discuss, vote on, and enact fiscal policy changes.
B. policy-makers recognize the nature and extent of the economic problems precisely.
C. government expenditures on unemployment insurance payments will increase during a recession.

[单项选择]An analyst does research about installment method and gathers the following information about a selling property:
·Carrying value is $200 million
·Sales price is $240 million
·Cash down payment is $80 million
The balance of the sales price will be received over a 6-year period and the company uses the installment method. The profit recognized from the down payment is closest to:（）
A. ￥8.8 million.
B. ￥13.3 million.
C. ￥66.7 million.

[单项选择]An analyst does research about execution instructions. A trader who places a buy order at the best bid most likely:（）
A. makes the market.
B. is inside the market.
C. takes the market.

[单项选择]An analyst does research about revenue recognition andgathers the following information about a construction contract with outcome that can be reliably measured:
·Estimated total revenues to be collected is $250000
·Estimated total costs to be incurred is $175000
·Cash collected during year 1 is $100000
·Costs incurred during year l is $ 80 000（）
A. Assuming the project will be completed after 4 years, the revenue from the contract recognized for year 1 is closest to $0
B. $142857
C. $114285

[单项选择]An analyst does research about characteristics of market structures. Barriers to entry of monopolistic competition are:（）
A. low.
B. moderate.
C. high.

[单项选择]An analyst does research about difference between an option-free bond and a callable bond. Compared to an otherwise identical option-free bond, a callable bond is least likely to have:（）
A. a more uncertain cash flow pattem.
B. less price appreciation potential as interest rates fall.
C. more price depreciation potential as interest rates rise.

[单项选择]An analyst does research about financial statement framework. Ratios and graphs are most likely the output of which of the following phases of the financial statement analysis framework（）
A. Process data.
B. Analyze/interpret the processed data.
C. Collect input data.

[单项选择]An analyst does research about equilibrium quantity. As the quantity of a product supplied is lower than the equilibrium quantity, which of the following is most likely to increase（）
A. Deadweight loss.
B. Producer surplus.
C. Consumer surplus.

[单项选择]An analyst does research about expected return and expect standard deviation of return from investment portfolio. Two assets have the same expected return and the same expected standard deviation of returns. The correlation coefficient of returns between the two assets is expected to be +0.6. Which of the following statements best describes the standard deviation of a portfolio composed of those two assets
If the two assets are combined to form a portfolio, the expected standard deviation of that portfolio will be:（）
A. the same as the expected standard deviation of returns for each asset because the correlation coefficient of returns is positive.
B. less than the expected standard deviation of returns for each asset because the correlation coefficient of returns is less than +1.0.
C. unaffected by the portfolio weights used for each of the two assets because the assets have the same expected return and the same expected standard deviation of returns.

[单项选择]An analyst does research about dividend discount model and gathers the following information about a company:

Current dividend per share (D0)	$2.80
Dividend growth rate	6.5%
Nominal risk-free rate	3.5%
Required risk premium	6.5%
Expected rate of inflation	1.5%

According to the dividend discount model (DDM), the value of a share is closest to:（）
A. $59.64
B. $80.00
C. $85.20

[单项选择]An analyst does research about earnings per share and gathers the following information about a company for 2011:
·Net income is $6 360 000
·Preferred dividends paid is $460000
·Common dividends paid is $600000
·Shares outstanding are 2200000 on 1 January 2011
·Shares repurchased are 400000 on 1 July 2011
The company's basic earnings per share for 2010 is closest to:（）
A. $2.65
B. $2.95
C. $3.28

[单项选择]An analyst does research about the difference between FIFO and LIFO inventory valuation method. Compared to the LIFO inventory valuation method, reporting inventory using the FIFO method in a period of rising prices and increasing quantities most likely causes the working capital to:（）
A. decrease.
B. remain unchanged.
C. increase.

[单项选择]An analyst does research about financial ratios and learns POP manufacturing company has financed its short-term liquidity by issuing debt. Which of the following ratios most likely has the greater sensitivity to a change in shareholders' equity（）
A. Sale-to-asset.
B. Debt-to-equity.
C. Debt-to-capital.

[单项选择]An analyst does research about commodity markets. Which of the following statements about investing in commodities is least accurate（）
A. Investing in commodity futures is the most common strategy for commodity investing.
B. A collateralized futures position consists entirely of long position in futures for a given amount of underlying value.
C. Commodities tend to have a low to negative correlation with stock and bond retums and a desired positive correlation with inflation.

[单项选择]An analyst does research about Eurodollar time deposits. Which of the following statements about Eurodollar time deposits is teast accurate（）
A. The interest is not deducted from the principal.
B. The interest rate is based on LIBOR.
C. The deposits are essentially short-term secured loans.