An investment project, with the same risk as the company, has an internal rate of return of 15 percent and a positive net present value of $25 million. If the projected cash inflows are reinvested at
A. 15percent
B. Lessthan15percent
C. Greaterthan15percent
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All else being equal, are impairment writedowns of long term asset associated with decrease in the companys:total asset turnover debt-to-equity ratio
A. Yes No
B. No Yes
C. No No
·Mean annual return 4%·Mean excess return 8.6%·Standard deviation of annual returns 23.4%·Portfolio beta 1.6The coefficient of variation and Sharpe meas
A. 0.82 0.37
B. 1.32 1.23
C. 1.32 0.37
Justin Banks just won the lottery and is trying to decide between the annual cash flow payment option or the lump sum option. Justin can earn 8% at the bank and the annual cash flow option is $100,000
A. $1,500,000.00.
B. $1,080,000.00.
C. $924,423.70.
Which of the following statements about the implications of tests for the efficient market hypothesis (EMH) is least accurate?
A. Bypurchasingamarketindexfund,aninvestorcanmatchthemarketreturnandminimizecosts.
B. Otherthancorporateinsidersandmarketspecialists,mosttradershavemonopolisticaccesstoinformation,whichrejectsthestrong-formEMH.
C. Technicaltradingrulesdonotconsistentlyprovideexcessreturnsafteradjustingfortradingcostsandtaxes.