[单选题]Which one of the following best illustrates erosion as it relates to a hot dog stand located on the beach?
A. Providing both ketchup and mustard for customers' use
B. Repairing the roof of the hot dog stand because of water damage
C. Selling fewer hot dogs because hamburgers were added to the menu
D. Offering french fries but not onion rings
E. Losing sales due to bad weather
Difficulty: 1 Easy
Topic: Cash flows
Learning Objective: 10-01 Determine the relevant cash flows for a proposed project.

[单选题]Which one of the following best describes the concept of erosion?
A. Expenses that have already been incurred and cannot be recovered
B. Change in net working capital related to implementing a new project
C. The cash flows of a new project that come at the expense of a firm's existing cash flows
D. The alternative that is forfeited when a fixed asset is utilized by a project
E. The differences in a firm's cash flows with and without a particular project
Difficulty: 1 Easy
Topic: Cash flows
Learning Objective: 10-01 Determine the relevant cash flows for a proposed project.

[单选题]Which one of the following variables is the exponent in the present value formula?
A. Present value
B. Future value
C. Interest rate
D. Number of time periods
E. There is no exponent in the present value formula.
Difficulty: 1 Easy

[单选题] "Which one index shouldF.irstlyB.e measuredB.y nurseB.eforeA. patientE.atD.igitalis(洋地黄)?
A.Temperature
B.Pulse
C.Resp

[单选题]Which one of following is the rate at which a stock's price is expected to appreciate?
A. Current yield
B. Total return
C. Dividend yield
D. Capital gains yield
E. Coupon rate
Difficulty: 1 Easy
Topic: Stock dividends
Learning Objective: 08-01 Explain how stock prices depend on future dividends and dividend growth.

[单选题] Which term best describes the New United Motor Manufacturing Co.?
A. Multinational enterprise
B. International joint venture
C. Multilateral contract
D. International commodity agreement

[单选题] "Which one isAnti-atherosclerosis molecules
A.TC
B.TG
C.HDL
D.LDL
E.VLDL

[单选题]Which one is anti-atherosclerosis molecules
A.TC
B.TG
C.HDL
D.LDL
E.VLDL

[单选题]Which one of the following statements concerning interest rates is correct?
A. Savers would prefer annual compounding over monthly compounding given the same annual percentage rate.
B. The effective annual rate decreases as the number of compounding periods per year increases.
C. The effective annual rate equals the annual percentage rate when interest is compounded annually.
D. Borrowers would prefer monthly compounding over annual compounding given the same annual percentage rate.
E. For any positive rate of interest, the annual percentage rate will always exceed the effective annual rate.
Difficulty: 1 Easy
Topic: Interest rates
Learning Objective: 06-04 Show how interest rates are quoted (and misquoted..

[单选题]Which one of the following standardizes items on the income statement and balance sheet relative to their values as of a chosen point in time?
A. Statement of standardization
B. Statement of cash flows
C. Common-base year statement
D. Common-size statement
E. Base reconciliation statement
Difficulty: 1 Easy
Topic: Standardized financial statements

[单选题]Which one of the following statements correctly applies to the period 1926–2016?
A. Large-company stocks earned a higher average risk premium than did small-company stocks.
B. The average inflation rate exceeded the average return on U.S. Treasury bills.
C. Large-company stocks had an average annual return of 14.7 percent.
D. Inflation averaged 2.6 percent for the period.
E. Long-term corporate bonds outperformed long-term government bonds.
Difficulty: 1 Easy
Topic: Historical performance
Learning Objective: 12-02 Discuss the historical returns on various important types of investments.

[单选题]Which one of the following relationships applies to a par value bond?
A. Yield to maturity > Current yield > Coupon rate
B. Coupon rate > Yield to maturity > Current yield
C. Coupon rate = Current yield = Yield to maturity
D. Coupon rate < Yield to maturity < Current yield
E. Coupon rate > Current yield > Yield to maturity
Difficulty: 1 Easy
Topic: Bond yields and returns
Learning Objective: 07-02 Explain bond values and yields and why they fluctuate.

[单选题]Which one of the following statements related to unexpected returns is correct?
A. All announcements by a firm affect that firm's unexpected returns.
B. Unexpected returns over time have a negative effect on the total return of a firm.
C. Unexpected returns are relatively predictable in the short-term.
D. Unexpected returns generally cause the actual return to vary significantly from the expected return over the long-term.
E. Unexpected returns can be either positive or negative in the short term but tend to be zero over the long-term.
Difficulty: 1 Easy
Topic: Expected return
Learning Objective: 13-01 Show how to calculate expected returns, variance, and standard deviation.