Chapter 6—The Tradeoff Between Risk and Return MULTIPLE CHOICE 1. Which of the following is an example of systematic risk? a. IBM posts lower than expected earnings. b. Intel announces record earnings. c. The national trade deficit is higher than expected. d. None of the above. ANS: C DIF: E REF: 6.4 The Power of Diversification 2. Which of the following is an example of unsystematic risk? a. IBM posts lower than expected earnings. b. The Fed raises interest rates unexpectedly. c. The rate of
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50 MC questions Chapter 7, 8, and 9 Test review * Risk * It’s the possibility of a loss, the uncertainty of a return that will never be achieved * What are the two components of risk? * Unsystematic risk (diversifiable risk) * Business risk * Financial risk * Can be eliminated through diversification * Systematic risk (non diversifiable risk) * Market risk * Interest rate risk * Reinvestment risk
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1. Within a limited partnership context, what are the conditions on a limited partner? A) There is a limit to the amount of capital that a limited partner can contribute, as mandated by law. B) There is a limit to the number of limited partners that the firm may take on as investors. C) The limited partner must remain a low level employee and cannot ever serve in a managerial role in the firm. D) A limited partner may not take any active role in the operation of the business. Points Earned:
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Practice Questions for Final Exam FIR 3710 Fall 2003 1. If a firm issues no new equity, book value will _______________________. A) decrease each year by the amount of retained earnings B) decrease each year by the amount of retained earnings minus depreciation on fixed assets C) increase each year by the amount of retained earnings D) increase each year by the amount of retained earnings plus depreciation on fixed assets 2. A firm
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Sample Final Exam 1. The term planning involves a. the development of future objectives and the preparation of various budgets to achieve these objectives. b. the steps taken to ensure that objectives set down by management are attained. c. the steps taken to ensure that all parts of the organization function in a manner consistent with organizational policies. d. comparing budgeted and actual results
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1. Explain in general terms how savings institutions differ from commercial banks with respect to their sources of funds and uses of funds. Discuss each source of funds for savings institutions. Identify and discuss the main uses of funds for savings institutions. Savings institutions obtain a large portion of their funds from savings deposits, more than large commercial banks. While savings institutions can offer NOW accounts, they cannot offer the traditional demand deposits. Savings institutions
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BLAW 2210 Term Paper Career Preparation My top two career choices are corporate financial analysis in investment banking and actuary. I will be discussing the legal environment of my career choices, taxing authorities, entity structure, graduate school in order to obtain certain license, self-assessment of my chosen careers. First, I will discuss how I can work as a corporate financial analysis in investment banking. After that, I will talk about what I need prepare to be an actuary. 1.corporate
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Question 1 10 points Save Macomb Corporation is a U.S. firm that invoices some of its exports in Japanese yen. If it expects the yen to weaken, it could ____ to hedge the exchange rate risk on those exports. sell yen put options buy yen call options buy futures contracts on yen sell futures contracts on yen Question 2 10 points Save A U.S. corporation has purchased currency put options to hedge a 100,000 Canadian dollar (C$) receivable
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12/2009 • Maintained inventory of standard dining service supplies and assists manager coordinate attendants. Member, Actuarial Club in University of Minnesota – Twin Cities 01/2009 – 12/2009 • Arranged the preparation of Casualty Actuarial Society (CAS) exam Volunteer, Students Today Leaders Forever 03/2009 – 12/2009 • Assisted the donation of food to Minnesotans at risk of hunger. Volunteer, in school for the Mute and the Deaf in Zhoushan, Zhejiang Province 2006 – 2009 • Taught disabled students Mandarin
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TEST NUMBER: ________________ FI 3300 – CORPORATION FINANCE FINAL EXAM Summer 2008 NAME _____________________________________________ STUDENT NUMBER _________________________________ CLASS DAYS/TIME _______________ INSTRUCTOR _________________________ READ THE FOLLOWING DIRECTIONS VERY CAREFULLY. FAILURE TO FOLLOW THESE INSTRUCTIONS WILL ALMOST CERTAINLY RESULT IN YOUR EXAM BEING MISGRADED WHICH WILL ADVERSELY AFFECT YOUR GRADE. IF THERE IS ANYTHING ABOUT THE DIRECTIONS THAT
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