Archives: Quiz
978-1260013924 Test Bank Chapter 10 Part 1
Essentials of Investments, 11e (Bodie) Chapter 10 Bond Prices and Yields 1) The invoice price of a bond is the ________. A) stated or flat price in a quote sheet plus accrued interest B) stated or flat price in a […]
978-1260013924 Test Bank Chapter 9 Part 3
72) In 1997 CSX successfully purchased a significant share of Conrail. Immediately after the first offer was announced and the acquisition eventually consummated, the price of CSX fell below preacquisition levels and took many years to recover. This may be […]
978-1260013924 Test Bank Chapter 9 Part 2
54) On a particular day, there were 920 stocks that advanced on the NYSE and 723 that declined. The volume in advancing issues was 80,846,000, and the volume in declining issues was 70,397,000. The trin ratio is ________, and technical […]
978-1260013924 Test Bank Chapter 9 Part 1
Essentials of Investments, 11e (Bodie) Chapter 9 Behavioral Finance and Technical Analysis 1) Models of financial markets that emphasize psychological factors affecting investor behavior are called ________. A) data mining B) fundamental analysis C) charting D) behavioral finance Answer: D […]
978-1260013924 Test Bank Chapter 8 Part 2
49) The effect of liquidity on stock returns might be related to: I. The small-firm effect II The book-to-market effect III The neglected-firm effect IV. The P/E effect A) I and II only B) I and III only C) II […]
978-1260013924 Test Bank Chapter 8 Part 1
Essentials of Investments, 11e (Bodie) Chapter 8 The Efficient Market Hypothesis 1) Which of the following beliefs would not preclude charting as a method of portfolio management? A) The market is strong-form efficient. B) The market is semistrong-form efficient. C) […]
978-1260013924 Test Bank Chapter 7 Part 3
68) If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and assume the risk-free rate is 5%. A) Portfolio Expected Return Beta A 15% 1.2 Market […]
978-1260013924 Test Bank Chapter 7 Part 2
46) In his famous critique of the CAPM, Roll argued that the CAPM ________. A) is not testable because the true market portfolio can never be observed B) is of limited use because systematic risk can never be entirely eliminated […]
978-1260013924 Test Bank Chapter 7 Part 1
Essentials of Investments, 11e (Bodie) Chapter 7 Capital Asset Pricing and Arbitrage Pricing Theory 1) An adjusted beta will be ________ than the unadjusted beta. A) lower B) higher C) closer to 1 D) closer to 0 Answer: C Difficulty: […]
978-1260013924 Test Bank Chapter 6 Part 3
65) You run a regression for a stock’s return on a market index and find the following Excel output: Multiple R 0.35 R-Square 0.12 Adjusted R-Square 0.02 Standard Error 38.45 Observations 12 Coefficients Standard Error t-Stat p-Value Intercept 4.05 15.44 […]
978-1260013924 Test Bank Chapter 6 Part 2
41) An investor can design a risky portfolio based on two stocks, A and B. The standard deviation of return on stock A is 20%, while the standard deviation on stock B is 15%. The correlation coefficient between the returns […]
978-1260013924 Test Bank Chapter 6 Part 1
Essentials of Investments, 11e (Bodie) Chapter 6 Efficient Diversification 1) Risk that can be eliminated through diversification is called ________ risk. A) unique B) firm-specific C) diversifiable D) all of these options Answer: D Difficulty: 1 Easy Topic: Diversification and […]
978-1260013924 Test Bank Chapter 5 Part 3
68) A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between -28% and 64% in any one year is ________. A) 68.26% B) 95.44% C) […]
978-1260013924 Test Bank Chapter 5 Part 2
45) Historically, the best asset for the long-term investor wanting to fend off the threats of inflation and taxes while making his money grow has been ________. A) stocks B) bonds C) money market funds D) Treasury bills Answer: A […]
978-1260013924 Test Bank Chapter 5 Part 1
Essentials of Investments, 11e (Bodie) Chapter 5 Risk, Return, and the Historical Record 1) You put up $50 at the beginning of the year for an investment. The value of the investment grows 4% and you earn a dividend of […]
978-1260013924 Test Bank Chapter 4 Part 2
50) Under SEC rules, the managers of certain funds are allowed to deduct charges for advertising, brokerage commissions, and other sales expenses directly from the fund assets rather than billing investors. These fees are known as ________. A) direct operating […]
978-1260013924 Test Bank Chapter 4 Part 1
Essentials of Investments, 11e (Bodie) Chapter 4 Mutual Funds and Other Investment Companies 1) Which one of the following invests in a portfolio that is fixed for the life of the fund? A) mutual fund B) money market fund C) […]
978-1260013924 Test Bank Chapter 3 Part 3
72) Trading on inside information is: I. Prohibited by federal law II. Prohibited by the CFA Institute Standards of Professional Conduct III. Monitored by the SEC A) I and II only B) II and III only C) I and III […]
978-1260013924 Test Bank Chapter 3 Part 2
50) According to SEC Rule 415 regarding shelf registration, firms can gradually sell securities to the public for ________ following initial registration. A) 1 year B) 2 years C) 3 years D) 4 years Answer: B Difficulty: 2 Medium Topic: […]
978-1260013924 Test Bank Chapter 3 Part 1
Essentials of Investments, 11e (Bodie) Chapter 3 Securities Markets 1) Underwriting is one of the services provided by ________. A) the SEC B) investment bankers C) publicly traded companies D) FDIC Answer: B Difficulty: 1 Easy Topic: How Firms Issue […]
978-1260013924 Test Bank Chapter 2 Part 2
43) Investors will earn higher rates of returns on TIPS than on equivalent default-risk standard bonds if ________. A) inflation is lower than anticipated over the investment period B) inflation is higher than anticipated over the investment period C) the […]
978-1260013924 Test Bank Chapter 2 Part 1
Essentials of Investments, 11e (Bodie) Chapter 2 Asset Classes and Financial Instruments 1) Which of the following is not a money market instrument? A) Treasury bill B) commercial paper C) preferred stock D) bankers’ acceptance Answer: C Difficulty: 1 Easy […]
978-1260013924 Test Bank Chapter 1 Part 2
43) Which of the following is not a financial intermediary? A) a mutual fund B) an insurance company C) a real estate brokerage firm D) a credit union Answer: C Difficulty: 2 Medium Topic: Financial Intermediaries Learning Objective: 01-02 Distinguish […]
978-1260013924 Test Bank Chapter 1 Part 1
Essentials of Investments, 11e (Bodie) Chapter 1 Investments: Background and Issues 1) Financial assets represent ________ of total assets of U.S. households. A) under 70% B) over 90% C) under 10% D) about 30% Answer: A Difficulty: 1 Easy Topic: […]
978-1260565812 Test Bank Chapter 17 Part 3
83) A(n) ________ allowance is paid when an expatriate is being sent to a difficult location. A) education B) housing C) hardship D) cost of living E) reciprocal Answer: C Explanation: Four types of allowances are often included in an […]
978-1260565812 Test Bank Chapter 17 Part 2
45) A(n) ________ staffing approach is compatible with an international strategy but can produce resentment in the host country. A) ethnocentric B) geocentric C) polycentric D) transnational E) ethical Answer: A Explanation: Broadly speaking, an ethnocentric approach is compatible with […]
Chapter 17 What Is A Disadvantage Of Adopting A Geocentric Staffing Approach
Global Business Today, 11e (Hill) Chapter 17 Global Human Resource Management 1) Employee compensation and labor relations are functions associated with human resource management. Answer: TRUE Explanation: Human resource management (HRM) refers to the activities an organization carries out to […]
978-1260565812 Test Bank Chapter 16 Part 3
82) Demand is labeled as ________ when a large change in price produces only a small change in demand. A) flexible B) consistent C) inelastic D) elastic E) dynamic Answer: C Explanation: The price elasticity of demand is a measure […]
978-1260565812 Test Bank Chapter 16 Part 2
46) What results when the retail sector is very concentrated? A) It is more expensive for a firm to make contact with each individual retailer. B) It makes sense for a firm to deal directly with retailers, cutting out wholesalers. […]
978-1260565812 Test Bank Chapter 16 Part 1
Global Business Today, 11e (Hill) Chapter 16 Global Marketing and R&D 1) A company might vary its marketing mix based on differences in national culture. Answer: TRUE Explanation: The marketing mix is the set of choices a firm offers to […]
978-1260565812 Test Bank Chapter 15 Part 3
83) Marble Counters Inc. prides itself on quality control and advertises that “we won’t ship a product unless we make it the way you want.” Based on this, Marble Counters Inc. most likely A) works in a regional market. B) […]
978-1260565812 Test Bank Chapter 15 Part 2
44) What is a drawback of ISO 9000 certification? A) It is bureaucratic and costly for many firms. B) It is an impossible standard to achieve. C) It is losing its prominence in international business. D) It is ineffective in […]
978-1260565812 Test Bank Chapter 15 Part 1
Global Business Today, 11e (Hill) Chapter 15 Global Production and Supply Chain Management 1) In recent years, the trend among U.S. firms is to outsource the “production” of some service activities to developing nations to take advantage of lower labor […]
978-1260565812 Test Bank Chapter 14 Part 3
85) Rather than use cash, Indonesia traded textiles with the United States in exchange for corn. This is an example of which form of countertrade? A) switch trading B) counterpurchase C) buyback D) barter E) offset Answer: D Explanation: Barter […]
978-1260565812 Test Bank Chapter 14 Part 2
49) Savannah Pecans is a fourth-generation family business. The company has concentrated on the U.S. market by selling its products primarily in the United States but now wants to sell abroad. The board of directors is hesitant about new markets […]
978-1260565812 Test Bank Chapter 14 Part 1
Global Business Today, 11e (Hill) Chapter 14 Exporting, Importing, and Countertrade 1) Only large companies have benefited significantly from the moneymaking opportunities of exporting. Answer: FALSE Explanation: Exporting is not just for large enterprises; many small firms have benefited significantly […]
978-1260565812 Test Bank Chapter 13 Part 3
82) Why do firms pursuing global standardization or transnational strategies tend to prefer establishing wholly owned subsidiaries? A) It gives firms sound knowledge of the local markets, culture, and the political environment. B) It helps protect competitive advantages based on […]
978-1260565812 Test Bank Chapter 13 Part 2
47) When considering modes of entry, Christopher Bartlett and Sumantra Ghoshal suggest that companies based in developing nations should A) build up financial resources to match those of the largest global competitors. B) enter foreign markets at a similar time […]
978-1260565812 Test Bank Chapter 13 Part 1
Global Business Today, 11e (Hill) Chapter 13 Entering Foreign Markets 1) A firm contemplating expansion should choose a foreign market based on an assessment of the nation’s long-run profit potential. Answer: TRUE Explanation: The almost 200 nation-states in the world […]
978-1260565812 Test Bank Chapter 12 Part 3
84) Denim Supply Inc. does not feel the pressure to create custom jeans for any of its markets around the world, but it does want to focus on cost reductions. What strategy should this company consider using to achieve this? […]
978-1260565812 Test Bank Chapter 12 Part 2
48) Of all the value creation activities in a firm, ________ creates value by discovering consumer needs and communicating them back to the R&D function of the company, which can then design products that better match those needs. A) production […]
978-1260565812 Test Bank Chapter 12 Part 1
Global Business Today, 11e (Hill) Chapter 12 The Strategy of International Business 1) A strategic alliance is a cooperative agreement between potential or actual competitors. Answer: TRUE Explanation: Strategic alliances are cooperative agreements between potential or actual competitors Difficulty: 1 […]
978-1260565812 Test Bank Chapter 11 Part 4
98) Differentiate between a floating exchange rate and a pegged exchange rate. Answer: When the foreign exchange market determines the relative value of a currency, we say that the country is adhering to a floating exchange rate regime. Four of […]
978-1260565812 Test Bank Chapter 11 Part 3
80) One drawback of the currency board system is A) the ease with which governments can set and manipulate interest rates acts as a limitation. B) higher domestic inflation rates compared to the inflation rate in the country to which […]
978-1260565812 Test Bank Chapter 11 Part 2
43) All countries were to fix the value of their currency in terms of gold but were not required to exchange their currencies for gold, according to the 1944 A) Bretton Woods agreement. B) Washington Consensus. C) World Bank treaty. […]
978-1260565812 Test Bank Chapter 11 Part 1
Global Business Today, 11e (Hill) Chapter 11 The International Monetary System 1) The U.S. dollar, EU euro, Japanese yen, and British pound are all free to float against each other, which means their exchange rates never fluctuate. Answer: FALSE Explanation: […]
978-1260565812 Test Bank Chapter 10 Part 3
80) Many economists compare the process of ________ to fortune-telling because there is no rationale for the assumption of predictability. A) the efficient market school B) fundamental analysis C) a planned economy D) the inefficient market school E) technical analysis […]
978-1260565812 Test Bank Chapter 10 Part 2
47) Kristin was shopping in New York last week and saw a Coach purse for $210. When she returned to London, she saw that same purse for £105. She knew that the exchange rate was one pound for every two […]
978-1260565812 Test Bank Chapter 10 Part 1
Global Business Today, 11e (Hill) Chapter 10 The Foreign Exchange Market 1) The foreign exchange market is the primary vehicle used to minimize monopolies within a marketplace. Answer: FALSE Explanation: The foreign exchange market is a market for converting the […]
978-1260565812 Test Bank Chapter 9 Part 3
83) Which country has been granted three bailout efforts by the EU in an attempt to prevent a sovereign debt crisis? A) Greece B) France C) Great Britain D) Belgium E) Portugal Answer: A Explanation: To try to stave off […]