Chapter1 Introduction to Corporate Finance

Chapter1 Introduction to Corporate Finance

1、单选题:
​Which of the following statements always apply to corporations? ​
选项:
A: Unlimited liability.
B: Limited life.
C: Ownership can be transferred with affecting operations.
D: Managers can be fired with no effect on ownership.
答案: 【 Managers can be fired with no effect on ownership.

2、单选题:
‌Which of the following decisions is not included in the three major decisions of corporate finance?‏
选项:
A:  Investment Decision
B: Financing Decision
C: Capital Structure
D: Sell Decision
答案: 【 Sell Decision

3、单选题:
‍How to solve the agency problem?‌
选项:
A: Increase investment
B: Strengthen supervision
C: Increase cost
D: No way
答案: 【 Strengthen supervision

4、单选题:
‏Which of the following belongs to the three forms of ownership of the enterprise? ‍
选项:
A:  Individual Proprietor
B: Corporate
C: Partnership
D: The above three
答案: 【 The above three

5、单选题:
‍Which of the following options is not an advantage of the Corporate?‏
选项:
A: Shares can be easily transferred
B: Continue to operate
C: No corporate taxes
D:  Limited liability
答案: 【 No corporate taxes

6、判断题:
​Real assets, such as stocks or bank loans, are claims held by investors. ‎
选项:
A: 正确
B: 错误
答案: 【 错误

7、判断题:
‌Capital budgeting means investment in real assets. ‍
选项:
A: 正确
B: 错误
答案: 【 正确

8、判断题:
‏ The shares of public corporations are traded on stock exchanges and can not be purchased by a wide range of investors.‍
选项:
A: 正确
B: 错误
答案: 【 错误

9、判断题:
​ A sole proprietor has unlimited liability.  ‍
选项:
A: 正确
B: 错误
答案: 【 正确

10、判断题:
‏A corporation is a separate legal “person” with unlimited life.‎
选项:
A: 正确
B: 错误
答案: 【 正确

Chapter2 Fundamentals of Corporate Investment Decisions Valuation Issues

Chapter2 Fundamentals of Corporate Investment Decisions

Chapter3 Risks and Benefits

Chapter3 Risks and Benefits

1、单选题:
‎The Treasury bill rate is 4%, and the expected return on the market portfolio is 12%. Using the capital asset pricing model: What is the risk premium on the market? ‌
选项:
A: 6%
B: 7%
C:  8%
D: 5%
答案: 【  8%

2、单选题:

 Calculate the standard deviations of the following portfolios. 50% in Treasury bills, 50% in stock P.

‌选项:
A:  6%
B: 7%
C:  8%
D: 5%
答案: 【 7%

3、单选题:

Consider the following simplified APT model: 

Calculate the expected return for P. Assume rf=5%.

‌选项:
A: 10.58%
B: 11.58%
C: 12.58%
D: 13.58%
答案: 【 11.58%

4、单选题:
‌In which of the following situations would you get the largest reduction in risk by spreading your investment across two stocks? ‏
选项:
A: The two shares are perfectly correlated.
B: There is no correlation.
C:  There is modest negative correlation.
D: There is perfect negative correlation.
答案: 【 There is perfect negative correlation.

5、单选题:

Consider a three-factor APT model. The factors and associated risk premiums are: 

Calculate expected rates of return of a stock with average exposure to each factor (i.e., with b=1 for each). The risk-free interest rate is 7%.   

​选项:
A: 10%
B: 11%
C: 12%
D: 13%
答案: 【 13%

6、判断题:
​ If stocks were perfectly positively correlated, diversification would not reduce risk. ‎
选项:
A: 正确
B: 错误
答案: 【 正确

7、判断题:
‍Diversification over a large number of assets completely eliminates risk. ‎
选项:
A: 正确
B: 错误
答案: 【 错误

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