题目内容

An analyst is investigating the security market line (SML). Given no major changes in asset risk characteristics, which of the following changes is most likely to be associated with an increase in the

An increase in inflation expectations.
B. A decrease in the yield spread between A-rated and B-rated bonds.
C. An increase in the yield spread between A-rated and B-rated bonds.

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If interest rate falls, which of the following statements is true?

A. Callable bonds price rises more slowly than that of a noncallable but otherwise identical bond.
B. Value of call option embedded in the callable bond falls.
Callable bonds price rises faster than that of a noncallable but otherwise identical bond.

An analyst is checking the information from his two clients William and Robert. William has been retired and is primarily concerned with achieving an investment return no less than the rate of inflati

A. Current income Capital appreciation
B. Capital preservation Total return
Capital preservation Capital appreciation

Which classification of hedge funds is least likely to use a short position in stock as a part of its strategy?

A. Market-neutral funds
B. Distressed securities funds
C. Emerging-market funds

During a period of declining prices, a company using the LIFO inventory method instead of FIFO would most likely report:

A. Higher current assets and lower gross income
B. Higher current assets and higher gross income
C. Lower current assets and lower gross income

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