The nominal risk-free rate of return during a given period is best described as the return, that compensates investors for the:
A. Timevalueofmoneyonly
B. Timevalueofmoneyandtheexpectedrateofinflationonly
C. Timevalueofmoneyandtheuncertaintyofthereturnonly
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Which of the following statements about the market portfolio and the capital market line (CML) is least accurate? The market portfolio:
Assumesanequalamountisinvestedineachriskyasset.
B. IsperfectlypositivelycorrelatedwithotherportfoliosontheCML.
C. Bearsriskthatisrelatedtochangesinmacroeconomicvariable.
Which of the following is included in a present model:
A. Enterprisevalue.
B. Freecashflowtoequitymodel.
C. Pricetobookvalue.
A fundamental analyst studying 100 potential companies for inclusion in her stock portfolio uses the following three screening criteria:Screening Criterion Number of Companies meeting the screen
A. 3.7%
B. 8.5%
C. 20.0%
An analyst gathered the following information about a company whose fiscal year ends on 31 December:·Net income for the year was $10.5 million·Preferred stock dividends of $2 m
A. $0.35
B. $0.37
C. $0.39