An analyst is assessing a companys quality of earnings by looking at the cash flow earnings index (operating cash flow divided by net income). Potential problems would most likely be indicated if the
A. Equal to 1.0
B. Less than 1.0
C. Greater than 1.0
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A company has an equity beta of 1.4 and is 60% funded with debt. Assuming a tax rate of 35%, the companys asset beta is closest to:
A. 0.71
B. 0.98
C. 1.01
A fixed income securitys current price is 101.45. You estimate that the price will rise to 103.28 if interest rates decrease 0.25% and fall to 100.81 if interest rates increase 0.25%. The securitys ef
A. 1.22
B. 4.87
C. 9.74
Risk that can be attributed to factor(s) that impact a company or industry is best described as:
A. Market risk
B. Systematic risk
C. Unsystematic risk
Compared to its market-value-weighted counterpart, a fundamentally weighted index will least likely have a:
A. Value tilt.
B. Contrarian “effect.”
C. Momentum “effect.”