《金融市場學》習題

《金融市場學》復習題 1. Common stock is an example of a(n) ______. A) debt security. B) money market security. C) equity security. D) a and b 2. The required return to implement a given business project will be ______ if interest rates are lower. This implies that businesses will demand a ______ quantity of loanable funds when interest rates are lower. A) greater; lower B) lower; greater C) lower; lower D) greater; greater 3. The federal government demand for loanable funds is __________. If the budget deficit was expected to increase, the federal government demand for loanable funds would ________. A) interest elastic; decrease B) interest elastic; increase C) interest inelastic; increase D) interest inelastic; decrease 4. If the real interest rate was negative for a period of time, then A) inflation is expected to exceed the nominal interest rate in the future. B) inflation is expected to be less than the nominal interest rate in the future. C) actual inflation was less than the nominal interest rate. D) actual inflation was greater than the nominal interest rate. 5. If inflation turns out to be lower than expected A) savers benefit. B) borrowers benefit while savers are not affected. C) savers and borrowers are equally affected. D) savers are adversely affected but borrowers benefit. 6. Assume that foreign investors who have invested in U.S. securities decide to increase their holdings of U.S. securities. This should cause the supply of loanable funds in the United States to _____ and should place ______ pressure on U.S. interest rates. A) decrease; upward B) decrease; downward C) increase; downward D) increase; upward 7. If economic expansion is expected to decrease, the demand for loanable funds should ______ and interest rates should ______. A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase 8. When Japanese interest rates rise, and if exchange rate expectations remain unchanged, the most likely effect is that the supply of loanable funds provided by Japanese investors to the United States will ______, and the U.S. interest rates will _______. A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase 9. Assume that annualized yields of shortterm and longterm securities are equal. If investors suddenly believe interest rates will increase, their actions may cause the yield curve to A) become inverted. B) become flat. C) become upward sloping. D) be unaffected. 10. If the liquidity premium exists, a flat yield curve would be interpreted as the market expecting ______ in interest rates. A) no changes B) a slight decrease C) a slight increase D) a large increase 11. According to the segmented markets theory, if most investors suddenly preferred to invest in shortterm securities and most borrowers suddenly preferred to issue longterm securities there would be A) upward pressure on the price of longterm securities. B) upward pressure on the price of shortterm securities. C) downward pressure on the yield of longterm securities. D) a and c 12. Other things equal, the yield required on noncallable bonds should be ______ the yield required on callable bonds whose other characteristics are exactly the same. A) greater than B) equal to C) less than D) All of the above are possible, depending on the size of the call premium. 13. According to expectations theory, the sudden expectation of lower interest rates in the future will cause a ______ supply of shortterm funds provided by investors, and a ______ supply of longterm funds. A) large; large B) large; small C) small; small D) small; large 14. Assume that the Treasury experiences a large decrease in the budget deficit and purchases a large number of T-bills. This action will _________________ the supply of T-bills in the market and places __________________ pressure on the yield of T-bills. A) decrease; downward B) decrease; upward C) increase; upward D) increase; downward 15. A firm plans to issue 30day commercial paper for $9,900,000. Par value is $10,000,000. What is the firm’s cost of borrowing? A) 12.12% B) 11.11% C) 13.00% D) 14.08% E) 15.25% 16. A repurchase agreement calls for an investor to buy securities for $4,925,000 and sell them back in 60 days for $5,000,000. What is the yield? A) 9.43% B) 9.28% C) 9.14% D) 9.00% 17. Robbins Corp. frequently invests excess funds in the Mexican money market. One year ago, Robbins invested in a one-year Mexican money market security that provided a yield of 25%. At the end of the year, when Robbins converted the Mexican pesos to dollars, the peso had depreciated from $.12 to $.11. What is the effective yield earned by Robbins? A) 25.00% B) 35.41% C) 14.59% D) none of the above 18. Bullock Corp. purchases certain securities for $4,921,349, with an agreement to sell them back at a price of $4,950,000 at the end of a 30-day period. The repo rate is ________ %. A) 7.08 B) 6.95 C) 6.99 D) 7.04 E) none of the above 19. Assume U.S. interest rates are significantly higher than German rates. A U.S. firm wanting to issue bonds could achieve a lower financing rate, without exchange rate risk by denominating the bonds in A) dollars. B) marks（德國馬克）and making payments from U.S. headquarters. C) marks and making payments from a German subsidiary. D) dollars and making payments from a German subsidiary. 20. If interest rates suddenly ____________, those existing bonds that have a call feature are __________ likely to be called. A) decline; more B) decline; less C) increase; more D) none of the above 21. When financial institutions expect interest rates to ______, they may ______. A) increase; sell bonds and buy short term securities B) increase; sell short term securities and buy bonds C) decrease; sell bonds and buy short term securities D) B and C 22. If the coupon rate ______ the required rate of return, the price of a bond _____ par value. A) equals; equals B) exceeds; is less than C) is less than; is greater than D) B and C E) none of the above 23. As interest rates consistently rise over a specific period, the market price of a bond you own would likely ______ over this period. (Assume no major change in the bond’s default risk.) A) consistently increase B) consistently decrease C) remain unchanged D) change in a direction that cannot be determined with the above information 24. If analysts expect that the demand for loanable funds will increase, and the supply of loanable funds will decrease, they would most likely expect interest rates to ______ and prices of existing bonds to ______. A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase 25. If bond portfolio managers expect interest rates to increase in the future, they would likely ______ their holdings of bonds now, which could cause the prices of bonds to ______ as a result of their actions. A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase 26. If the United States announces that it will borrow an additional $10 billion, this announcement will normally cause the bond traders to expect A) higher interest rates in the future, and will buy bonds now. B) higher interest rates in the future, and will sell bonds now. C) stable interest rates in the future, and will buy bonds now. D) lower interest rates in the future, and will buy bonds now. E) lower interest rates in the future, and will sell bonds now. 27. If the level of inflation is expected to __________, there will be _______________ pressure on interest rates and ____________ pressure on the required rate of return on bonds. A) increase; upward; downward B) decrease; upward; downward C) decrease; upward; upward D) increase; downward; upward E) increase; upward; upward 28. Using a(n) _____________ strategy, investors allocate funds evenly to bonds in each of several different maturity classes. A) matching B) laddered C) barbell D) interest rate E) none of the above 29. Managers of firms may consider a stock repurchase or even a leveraged buyout when they believe their stock is ____________ by the market, or a secondary stock offering when they believe their stock is ____________ by the market. A) undervalued; undervalued B) overvalued; overvalued C) undervalued; overvalued D) overvalued; undervalued E) none of the above 30. A stock’s average return is 10%. The average risk-free rate is 7%. The standard deviation of the stock’s return is 4%, and the stock’s beta is 1.5. What is the Treynor Index for the stock? A) .03 B) .75 C) 1.33 D) .02 E) 50 31. A higher beta of an asset reflects A) lower risk. B) lower covariance between the asset’s returns and market returns. C) higher covariance between the asset’s returns and the market returns. D) none of the above. 32. The arbitrage pricing theory (APT) differs from the capital asset pricing model (CAPM) in that it suggests that stock prices A) are influenced only by the market itself. B) can be influenced by a set of factors in addition to the market. C) are not influenced at all by the market. D) cannot be influenced at all by the industry factors. 33. If the returns of two stocks are perfectly correlated, then A) their betas should each equal 1.0. B) the sum of their betas should equal 1.0. C) their correlation coefficient should equal 1.0. D) their portfolio standard deviation should equal 1.0. 34. The risk of a short sale is that the stock price A) may decrease over time. B) will remain the same. C) may increase over time. D) none of the above. 35. Sellers (writers) of call options can offset their position at any point in time by A) selling a put option on the same stock. B) buying identical call options. C) selling additional call options on the same stock. D) A and B E) all of the above 36. Speculators purchase currency ______ on currencies they expect to ______ against the dollar. A) call options; weaken B) put options; strengthen C) futures; weaken D) put options; weaken 37. The premium on an existing call option should ______ when the underlying stock price decreases. A) be negative B) decline C) increase D) be unaffected E) A and B 計算題： 1. Sorvino Co. is expected to offer a dividend of $3.2 per share per year forever. The required rate of return on Sorvino stock is 13%. According to the dividend discount model, what is the price of a share of Sorvino stock? 習題答案： 選擇題： 1-5 CBCDA 6-10 CCDCB 11-15 BCDBA 16-20 CCCCA 21-25 AABBC 26-30 BDBCD 31-35 CBCCB 36-37 DB 計算題： 1. 24.62