2023年云南金融英语考试模拟卷（6）

2023年云南金融英语考试模拟卷（6）本卷共分为1大题50小题，作答时间为180分钟，总分100分，60分及格。一、单项选择题（共50题，每题2分。每题的备选项中，只有一个最符合题意） 1.A company is considering the purchase of a copier that costs $ 5000. Assume a cost of capital of 10 percent and the following cash flow schedule: Year 1: $ 3000 Year 2: $ 2000 Year 3: $ 2000 Determine the projects payback period and discounted payback period. Payback Period Discounted Payback Period （）A. 2.0 years 1.6 yearsB. 2.4 years 2.4 yearsC. 2.0 years 2.4 yearsA. B. C. 2.Financial information for Jefferson Corp. for the year ended December 31st, was as follows:（）ASalesB$ 3000000CPurchasesD1800000EInventory at BeginningF500000GInventory at EndingH800000IAccounts Receivable at BeginningJ300000KAccounts Receivable at EndingL200000MOther Operating Expenses PaidN4000003.Over the past two years, a firm reported higher operating cash flow as a result of securitizing its accounts receivable and from increasing income tax benefits from employee stock options. The tax benefits are solely the result of higher tax rates. Should an analyst conclude that these two sources of operating cash flow are sustainable()A. Both sources are sustainable.B. Neither source is sustainable.C. Only one of these sources is sustainable.4.Doroth Kelly, a investment advisor, enrolled to take the Level m CFA examination in 2004; however, he did not take the exam. When her employer asked her about her status in the CFA program, Kelly advised her employer that she was confident that she passed Level and would become the CFA charter holder soon. Did Kelly violate the CFA Institutes Standards of Professional Conduct relating to professional misconduct and duty to employer, respectively Professional misconduct duty to employer()A. No NoB. No YesC. Yes No5.A firm has just signed an 8-year lease on a new machine. Fair value of the machine is $100000.Lease payments are $18000 per year, payable at the end of the year. The machine has an estimated salvage value of $ 5000 at the end of the lease term. The machine has a 10-year useful life. The firms incremental borrowing cost is 8 percent. This lease should be classified as:（）A. operating.B. conventional.C. capital.6.Which of the following statements regarding footnotes to the financial statements is FALSE()A. Footnotes provide information about assumptions and estimates used by management.B. Footnotes may disclose what types of accounting methods are being used.C. Some supplementary schedules are audited whereas footnotes are not audited.7.According to the Global Investment Performance Standards (GIPS)()A. composites must include new portfolios as soon as they come under management.B. Firms may not set minimum asset levels for portfolios to be included in a composite.C. Composites must be defined according to similar investment objectives and/or strategies.8.Break points in a firms marginal cost of capital schedule are best interpreted as representing the:（）A. maximum amounts of debt, preferred stock, and common stock the firm can issue.B. amounts of capital expenditure at which the company’s weighted average cost of capital increases.C. amounts of new securities a firm would need to issue to take advantage of flotation cost discounts.9.An investor has obtained the following information about Worldwide Industries, Inc. Net profit margin 8.7% Total asset turnover 2.4 times Dividendpayout ratio 35% Tax rate 35% Total sales $120 million Totalequity 40% of total assets Based on this information, Worldwides ROE is closest to:（）A. 52.2%.B. 14.5%.C. 20.0%.10.James Waiters, CFA, is an active fixed income portfolio manager. He manages a portfolio of fixed income securities worth $ 7500000 for an institutional client. Waiters expects a widening yield spread between intermediate and long term securities. He would like to capitalize on his expectations and considers several transactions in a number of different securities. On 01/31/ 2005, Walters expects the yield of the 2-Year Treasury Note to decrease by 10 basis points and the yield of the 30-Year Treasury Bond to increase by 11 basis points. The characteristics of these two fixed income securities are shown in Table 1. Prices are quoted as a percentage of par value.ATable 1BSecurity CharacteristicsCD2 -Year T-NoteE30 -Year T-BondFMaturityG01/31/07H11/15/34IBid-Ask Spread (basis points)J5.0K5.0LCouponM5.375%N6.125%OBid PriceP99.7236Q104.6086RAsk PriceS99.7736T104.6586UYield to MaturityV5.51%W5. 80%XPrice Value of a Basis PointY186.6484Z1461.1733 11.The minimum proportion of observations falling within 2 standard deviations of the mean is closest to:（）A. 95%.B. 75%.C. 68%.12.Which of the following is least likely an important requirement of good corporate governance （）A. Members of the board should serve staggered, multiple-year terms.B. A board should be composed of at least a majority of independent board members.C. Board members should have appropriate experience and expertise relevant to the company’s business.13.Assuming a project is in process, which of the following best describes a difference between the percentage-of-completion method versus the completed contract method for revenue recognition The:（）A. completed contract method generates higher cash flows.B. percentage-of-completion method results in higher earnings volatility.C. percentage-of-completion method generally results in higher total assets.14.According to the Standards of Practice Handbook, which of the following statements about fair dealing is least accurate The Standard relating to fair dealing:（）A. states that members should treat all clients equally.B. pertains to both investment recommendations and investment actions.C. imposes a duty with respect to both clients and prospective clients.15.An analyst gathered the following information about a company’s common stock.If markets are in equilibrium, the expected constant dividend growth rate is closest to:（）A. 3.0%.B. 8.33%.C. 11.5%.16.Which of the following is NOT an example of event risk（）A. An interim South American government imposes restrictions on the outflow of capital.B. The U. S. Food and Drug Administration (FDA) determines that a biotech company’s flagship product is harmful to consumers and cannot be marketed.C. A corporation calls a large bond issue.17.Which of the following statements regarding firms that capitalize versus expense costs is least accurate（）A. Cash flow from financing is the same whether costs are capitalized or expensed.B. Firms that capitalize costs initially have lower profitability ratios compared to expensing firms.C. Costs of acquiring a trademark by purchasing it are capitalized.18.A technology that all of the firms in a perfectly competitive industry are using in their production process has been banned by new legislation. What will most likely be the effect if these firms stop using this technology（）A. The quantity that the industry will supply at a given price will be reduced.B. Firms will adopt a different technology that reduces their costs of production.C. The number of firms in the industry will increase market price.19.Kruger Associates uses an accrual basis for financial reporting purposes and cash basis for tax purposes. Cash collections from customers are $ 476000, and accrued revenue is only $ 376000. Assume expenses at 50 percent in both cases (i.e.$ 238000 on cash basis and $188000 on accrual basis), and a tax rate of 34 percent. What is the deferred tax asset or liability A deferred tax:（）A. asset of $17000.B. asset of $ 48960.C. liability of $ 48960.20.Which of the following is NOT considered a constraint when preparing an investment policy statement（）A. Liquidity needs.B. Time horizon.C. Risk tolerance.21.Which of the following is NOT a barrier to entry.（）A. Government licensing and legal barriers.B. Few sellers.C. Resource control.22.Two projects being considered by a firm are mutually exclusive and have the following projected cash flows:（）A.YearB.Project A Cash FlowC.Project B Cash flow23.Assume a bonds quoted price is 105.22 and the accrued interest is $3.54. The bond has a par value of $100. What is the bonds clean price（）A. $100.00.B. $103.54.C. $105.22.24.All of the following are characteristics of a well functioning securities market EXCEPT:（）A. Internal information efficiency which can lead to variable transaction costs.B. It would provide liquidity (marketability, price continuity, and depth).C. It would provide internal and external efficiency.25.Which of the following statements about the relationship between the value of a callable bond, the value of an option-free bond, and the value of the embedded call option is TRUE（）A. Value of a callable bond=present value of the interest payments +present value of the principal at maturity.B. Value of a callable bond=value of an option-free bond + value of an embedded call option.C. Value of a callable bond=value of an option-free bond-value of an embedded call option.26.Which of the following is a difference between an on-the-run and an off-the-run issue An on- the-run issue:（）A. is the most recently issued security of that type.B. tends to sell at a lower price.C. has a shorter maturity than an off-the-run issue.27.An increase in interest rates can be expected to（）A. decrease investment and increase net exports.B. increase government spending and decrease investment.C. decrease investment and decrease consumption.28.A company has 1000000 warrants outstanding at the beginning of the year, each convertible into one share of stock with an exercise price of $ 50. No new warrants were issued during the year. The average stock price during the period was $60, and the year-end stock price was $45. What adjustment for these warrants should be made, under the treasury stock method, to the number of shares used to calculate basic and diluted earnings per share (EPS) Basic EPS Diluted EPS （）A. 0 166667 B. 166667 200000 C. 166667 166667A. B. C. 29.Which of the following statement about indexes is true（）A. The Nikkei-Dow Jones average is a price-weighted index of stocks from the first tier of the Tokyo Stock Exchange.B. New York Stock Exchange Index is a price weighted index.C. The Value Line Composite Average is a price weighted index.30.Paul, CFA, heads the research department of a large brokerage firm. Paul has supervisory responsibility over 25 analysts. If Paul delegates some supervisory duties, which statement best describes his responsibilities based on the Standards of Professional Conduct（）A. Paul is not responsible for those duties he has delegated to his subordinates.B. Paul’s supervisory responsibilities only apply to analysts with the CFA designation.C. Paul retains supervisory responsibility for all subordinates despite his delegation of some duties.31.A recent ad for a Roth IRA includes the statement that if a person invests $ 500 at the beginning of each month for 35 years, they could have $1000000 for retirement. Assuming monthly compounding, what annual interest rate is implied in this statement（）A. 6. 988%.B. 7.411%.C. 7.625%.32.The increase in total revenue from selling the additional output of one more unit of an input is called the inputs:（）A. factor of production.B. marginal revenue.C. marginal revenue product.33.Karen Wilson, CFA, supervises eight junior analysts at Spartan Financial Services. Karen suspects that one of the analysts is violating Spartans personal investing policy. According to the Standards of Practice Handbook, Karens most appropriate initial action is to.（）A. Initiate an investigation.B. Notify her supervisor of the analyst’s suspected misconduct.C. Require the analyst to liquidate and close all personal accounts.34.A security market with price continuity is most accurately characterized as a market in which:（）A. assets can be bought or sold quickly.B. an asset’s price reflects all available information about the asset.C. prices do not change much from one transaction to the next in the absence of new information.35.Which of the following is included in non-cash adjustments to net income in the statement of cash flows（）A. Prepaid items.B. Credit sales.C. Credit purchases.36.Heidi Krueger, CFA, has discretionary authority over the accounts of Johnson, for whom she manages a portfolio of energy stocks, and Osaki, for whom she manages a diversified portfolio of domestic and international stocks. Krueger always seeks the best price and execution and has disclosed to all of her clients the process she follows to make use of soft dollars and apply them for the benefit of her clients. In the year 2004, Krueger applied soft dollars generated from the Johnson and Osaki accounts to purchase a report on the economic impact of world events, to purchase an analysis of the domestic steel industry, and to purchase a new conference table for her office. Krueger was in compliance with the Code and Standards in the year 2004:（）A. only if she had not used soft dollars to pay for the conference table.B. only if she had not used soft dollars to pay for the conference table and had not used soft dollars from the trading of Johnson’s account to pay for the report on the domestic steel industry.C. because she disclosed her use of soft dollars and applied them for the direct and indirect benefit of her clients.37.A mortgage-backed security has the following characteristics: It was created by pooling a collection of more than a thousand mortgages Not all investors face the same prepayment risk Investors receive three distinct kinds of cash flows Freddie Mac issued the security This security is a(n):（）A. collateralized mortgage obligation.B. stripped mortgage-security.C. mortgage passthrough security.38.An analyst gathered the following information about a company:The value of a share of the company’ s common stock is closest to:（）A.€110B.€120C.€14439.The Standards of Practice Handbook is least likely to require a member of members firm to disclose which of the following to clients and prospective clients（）A. Underwriting relationships.B. Market-making activities.C. Obligation to abide by CFA Institute Code of Ethics and Standards of Professional Conduct.40.You need to estimate the market value of an income producing property located in your town. Through research you have found that the property should have net operating income of $ 900000, taxes of $135000, a capitalization rate of 14 percent, and an inflation rate of 3 percent. What is the estimated property value using above information（）A. $ 8281756.B. $ 6428571.C. $ 5464387.41.In a perfectly efficient market, portfolio managers should do all of the following EXCEPT:（）A. rebalance their portfolio when changes are necessary.B. diversify to eliminate systematic risk.C. quantify their risk and return needs within the bounds of the client’s liquidity, income, time horizon, legal, and regulatory constraints.42.A stock priced at $ 20 has an 80 percent probability of moving up and a 20 percent probability of moving down. If it moves up, it increases by a factor of 1.05. If it moves down, it decreases by a factor of 1/1.05. What is the expected stock price after two successive periods（）A. $ 20.05.B. $ 22.05.C. $ 21.24.43.Scott LaRue is a portfolio manager for Washington Advisors. Washington has developed a proprietary model that has been thoroughly researched and is known throughout the industry as the Washington model. The model is purely quantitative and screens stocks into buy, hold, and sell categories. The basic philosophy of the model is thoroughly explained to clients. The director of research frequently alters the model based on rigorous research-an aspect that is well explained to clients, although the specific alterations are not continually disclosed. Portfolio managers then make specific sector and security holding decisions, purchasing only securities that are indicated as buys by the model. LaRue has conducted some research on his own and feels the model would be improved by adding some factors. Based on his research, he applied his own version of the model, which is occasionally in conflict with the Washington model. LaRue discloses his model to his own clients but not to his supervisor. LaRue is:（）A. violating the Standards by not considering the appropriateness of the recommendations to clients.B. violating the Standards by not being objective.C. violating the Standards by not having a reasonable and adequate basis for his investment recommendation.44.An investors portfolio currently consists of 100% of stocks that have a mean return of 16.5% and an expected variance of 0. 0324. The investor plans to diversify slightly by replacing 20% of her portfolio with U. S. Treasury bills that earn 4.75%. Assuming the investor diversifies, what are the expected return and expected standard deviation of the portfolio ERP P （）A. 14.15% 14.40%B. 10.63% 2.59%C. 10.63% 14.40%A. B. C. 45.Fred Funk, CFA, agreed in writing with his former employer not to solicit former clients for a period of one year after his termination. After he left his former employer, he consulted with a lawyer about whether the agreement was legally enforceable. The lawyer advised Fred that it was doubtful that the agreement could be enforced, so Fred sent a marketing brochure about his new firm to his former clients. According to the Standards of Practice Handbook, which of the following Statements is most accurate with respect to Freds conduct（）A. The standards do not apply to Fred’s conduct.B. The Standards requires Fred to comply with the agreement with his former employer.C. Because Fred relied upon the opinion of legal counsel, he did not violate the Standards.46.A firm is most likely to structure a lease as an operating lease rather than a capital lease, when it:（）A. has a high debt-to-equity ratio.B. is very profitable.C. does not have debt covenants.47.Compared to the short-run supply curve, the long-run supply curve is:（）A. flatter.B. steeper sloping downward to the right.C. steeper sloping upward to the right.48.Which of the following statements about the component costs of capital is least likely correct The:（）A. cost of common equity is (expected dividend/stock price) plus expected dividend growth.B. cost of common equity is the required rate of return on common stock.C. cost of preferred stock is the preferred dividend divided by the preferred’ s par value.49.With respect to discretionary changes in fiscal policy, the time period, between the recognition of the change and the time the policy change is enacted is best described as the（）A. impact lag.B. recognition lag.C. administrative period.50.If the number of widgets demanded changes from 51 to 49 when the price changes from $4 to $ 6, the price elasticity of demand is:（）A. -0.10.B. -2.00.C. -1.00.