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FIN350 - Final Exam Review A
FIN350 - Final Exam Review A
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Wiley, Chapters 12, 13 & 14
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
The square root of the variance =
standard deviation
co-efficient of variance
variance
beta
2
All
public
information,
both past and present
is reflected in asset prices in a ______ market.
semi-strong-form
weak-form
strong-form
3
________ are two markets where securities are bought and sold.
NYSE and NASDAQ
EBIT and NYSE
SEC and NASDAQ
NASDAQ and GAAP
4
Using _______ is a popular way of forecasting future returns on investments.
probability
arithmetic average returns
weighted average returns
scenarios (future states of nature)
5
Break-even analysis is used to estimate # of units of a product must be sold for the firm to cover its related expenses.
True
False
6
The
Subchapter S
business structure is a subcategory of which of the following?
Proprietorship
Corporation
Partnership
N/A
7
An asset with a
beta > 1.0
is considered to be
less
volatile (or has more systematic risk) than the market.
False
True
8
A limited liability company (LLC) is a subcategory of which of the following?
B
A
N/A
C
9
Which of the following represents the correct structure/calculation for a
balance sheet
?
B
C
D
A
10
Which of the following two (2) categories of accounts are listed on the same financial statement?
A
D
C
B
11
Which of the following financial statements is used to determine the "net worth" of a business?
C (Cash Flow Statement)
Cash Flow Statement
A (Balance Sheet)
B (Income Statement)
12
Which of the following is used to measure the
risk
of investments?
B
C
A
13
Calculate the answers for B5 and B6 for the following portfolio that contains three different securities.
B5 = 90% | B6 = 100%
B5 = 90% | B6 = 1.80
B5 = 10% | B6 = 100%
14
_______ ratios indicate the extent to which assets are turned over and used to support sales.
Financial Leverage
Profitability
Asset Management
Liquidity
15
All
past market information
, including past prices, price trends and trading volume is reflected in a _____ market.
strong-form
semi-strong-form
weak-form
16
When asset
returns move in opposite directions
, it is called
positive correlation.
False
True
17
Revenue - COGS =
Owners' Equity
EBIT
Gross Profit
18
Which of the following represents the correct structure/calculation for an
income statement
?
B
D
C
A
19
_______ measures the volatility or variability of an asset’s returns, relative to the market portfolio.
Co-efficient Standard Deviation
Deviation
Variance
Beta
20
You stock bought for $65, sold for $80, received dividend of $3.75. What is the
annualized return
?
31%
25%
29%
27%
21
The
market portfolio
refers to the "market value" of an individual investor's portfolio.
False
True
22
Which of the following business structures is associated with having the
highest liquidity
?
Corporation
B
A
N/A
23
_______ ratios indicate the firm's ability to generate returns on its sales, assets and equity.
Profitability
Asset Management
Liquidity
Financial Leverage
24
U.S. Treasury bills typically have a
larger standard deviation
than corporate stock.
True
False
25
Calculate the weighted return for each: Stock A, Stock B and Bond C.
18.0% | 57.0% | 43.0%
36.0% | 69.50% | 14.25%
1.80% | 5.70% | .43%
26
A
proprietorship
is the only business structure considered to be a
legal entity.
False
True
27
The ______ is the rate paid on the last dollar of income.
marginal tax rate
year-end taxation
capital gains tax
28
Select each type of
business structure
that has
unlimited liability
for the owner(s).
Corporation
N/A
Proprietorship
Partnership
29
You stock bought for $65, sold for $80, received dividend of $3.75. What is the
dollar return
?
$68.75
$18.75
$15.00
$28.84
30
Which of the following indicates three ways to measure the
return
on an investment?
C
A
B