Tài chính doanh nghiệp UEH - (Bản tiếng Anh) Ôn tập trắc nghiệm chương 10

Corporate Finance, 12e (Ross) Chapter 10 Lessons from Market History 1) Alpha Industries stock sold for $39 a share at the beginning of the year. During the year, the company paid a dividend of $3 a share and then ended the year with a stock price of $37. The change in the stock price is best described as a: A) capital gain. B) positive total dollar return. C) capital loss. D) negative total dollar return. E) negative dividend yield. 2) The capital gains yield plus the dividend yield on a security is called the: A) variance of returns. B) geometric return. C) average period return. D) current yield. E) total return. 3) A portfolio of small-company common stocks, as used in this course, is best described as the stocks of the firms which: A) represent the smallest twenty percent of the companies listed on the NYSE. B) have gone public within the past five years. C) are too small to be listed on the NYSE. D) are included in the S&P 500 index. E) trade publicly for $5 a share or less. 4) Based on the period of 1926 through 2017, ________ have tended to outperform other securities over the long-term. A) U.S. Treasury bills B) large-company stocks C) long-term corporate bonds D) small-company stocks E) long-term government bonds 5) Based on the period of 1926 through 2017, U.S. Treasury bills have produced annual rates of return that: A) ranged from −1 percent to +15 percent. B) ranged from −1 percent to +5 percent. C) were negative only during the Great Depression. D) have always been positive. E) never exceeded 6 percent. 1 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 6) Another term that refers to the average rate of return is the: A) variance. B) standard deviation. C) real return. D) mean. E) histogram. 7) Which one of the following types of securities has tended to produce the lowest real rate of return for the period 1926 through 2017? A) U.S. Treasury bills B) Long-term government bonds C) Small-company stocks D) Large-company stocks E) Long-term corporate bonds 8) On average, for the period 1926 through 2017: A) the real rate of return on U.S. Treasury bills has been negative. B) small-company stocks have underperformed large-company stocks. C) long-term government bonds have produced higher returns than long-term corporate bonds. D) the excess return on long-term corporate bonds has exceeded the excess return on long-term government bonds. E) the excess return on large-company stocks has exceeded the excess return on small-company stocks. 9) Over the period of 1926 through 2017, the annual rate of return on ________ has been more volatile than the annual rate of return on ________. A) large-company stocks; small-company stocks B) U.S. Treasury bills; small-company stocks C) U.S. Treasury bills; long-term government bonds D) long-term corporate bonds; small-company stocks E) large-company stocks; long-term corporate bonds 10) Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2017? Rank from highest to lowest volatility. A) Large-company stocks, intermediate-term government bonds, long-term government bonds B) Small-company stocks, long-term corporate bonds, large-company stocks C) Long-term government bonds, long-term corporate bonds, small-company stocks D) Small-company stocks, large-company stocks, long-term corporate bonds E) Long-term corporate bonds, large-company stocks, U.S. Treasury bills 11) Over the period of 1926 to 2017, small-company stocks had an average return of ________ percent. A) 14.8 B) 15.2 C) 17.3 D) 14.6 E) 16.5 2 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 12) Over the period of 1926 to 2017, the average rate of inflation was ________ percent. A) 2.0 B) 2.7 C) 3.0 D) 3.8 E) 4.3 13) The average annual return on long-term corporate bonds for the period of 1926 to 2017 was ________ percent. A) 3.8 B) 5.8 C) 6.4 D) 7.9 E) 8.4 14) The average annual return on small-company stocks was about ________ percentage points greater than the average annual return on large-company stocks over the period of 1926 to 2017. A) 3.4 B) 4.4 C) 5.4 D) 6.4 E) 7.4 15) The average excess return on U.S. Treasury bills over the period of 1926 to 2017 was ________ percent. A) .4 B) 1.6 C) 2.2 D) 3.1 E) 3.8 16) The excess return is computed by ________ the average return for the investment. A) subtracting the inflation rate from B) adding the inflation rate to C) subtracting the average return on the U.S. Treasury bill from D) adding the average return on the U.S. Treasury bill to E) subtracting the average return on long-term government bonds from 17) Which one of the following is a correct statement concerning the excess return? A) The greater the volatility of returns, the greater the expected excess return. B) The lower the volatility of returns, the greater the expected excess return. C) The lower the average rate of return, the greater the excess return. D) The excess return is not correlated to the average rate of return. E) The excess return is not affected by the volatility of returns. 3 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 18) Which one of the following statements concerning the standard deviation is correct? A) The standard deviation is a measure of total return. B) The higher the standard deviation, the higher the expected return. C) The standard deviation varies in direct relation to increases in dividend yield. D) The higher the standard deviation, the lower the risk. E) The lower the standard deviation, the less certain the rate of return in any one given year. 19) The standard deviation of small-company stocks: A) had an average value of about 20 percent for the period 1926 to 2017. B) is roughly equivalent to the standard deviation on stocks of all sizes. C) is about ten times as large as the standard deviation of U.S. Treasury bills. D) is less than the standard deviation on large-company stocks. E) produces a narrow normal distribution curve. 20) Capital market history shows us that a correct ordering of the average return by asset classes, from lowest to highest, is: A) corporate bonds, U.S. Treasury bills, small-company stocks, large-company stocks. B) U.S. Treasury bills, small-company stocks, large-company stocks, government bonds. C) government bonds, U.S. Treasury bills, large-company stocks, small-company stocks. D) U.S. Treasury bills, government bonds, corporate bonds, large-company stocks. E) U.S. Treasury bills, long-term government bonds, intermediate-term government bonds, small-company stock. 21) The average squared difference between the actual return and the average return is called the: A) volatility return. B) variance. C) standard deviation. D) risk premium. E) excess return. 22) The standard deviation for a set of stock returns can be calculated as the: A) positive square root of the average return. B) average squared difference between the actual return and the average return. C) positive square root of the variance. D) average return divided by N minus one, where N is the number of returns. E) variance squared. 23) A symmetric, bell-shaped frequency distribution that is completely defined by its mean and standard deviation is the ________ distribution. A) gamma B) Poisson C) bimodal D) normal E) uniform 4 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 24) The variance of returns is computed by dividing the sum of the: A) squared deviations by the number of returns minus one. B) average returns by the number of returns minus one. C) average returns by the number of returns plus one. D) squared deviations by the average rate of return. E) squared deviations by the number of returns plus one. 25) The Sharpe ratio is computed as the average: A) equity risk premium divided by the standard deviation. B) squared deviation divided by the average excess return. C) excess return divided by the variance of the returns. D) equity risk premium divided by the variance. E) squared deviation divided by the (Number of returns − 1). 26) The average compound return earned per year over a multi-year period is called the ________ average return. A) arithmetic B) standard C) variant D) geometric E) real 27) The return earned in an average year over a multi-year period is called the ________ average return. A) arithmetic B) standard C) variant D) geometric E) real 28) Of these countries, which one has the highest historical equity risk premium for the period 1900-2010? A) Italy B) Ireland C) Switzerland D) Spain E) Norway 29) Which country has the highest Sharpe ratio based on historical equity risk premiums and standard deviations of returns for the period 1900-2010? A) Italy B) Australia C) United States D) Germany E) Norway 5 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 30) In estimating the future equity risk premium, it is important to include assumptions about the: A) historical distribution of returns on derivative securities only. B) future risk environment only. C) amount of risk aversion of future investors only. D) historical distribution of returns on derivative securities and the future risk environment. E) future risk environment and the amount of risk aversion of future investors. 31) From November 2007 through January 2009, the S&P 500 Index lost approximately what percent of its value? A) 37 B) 51 C) 43 D) 33 E) 45 32) In 2008, which country experienced a decline in its stock market value in excess of 90 percent? A) India B) Russia C) China D) United States E) Iceland 33) In 2008, which asset class had the highest rate of return in the U.S.? A) Small-company stocks B) Long-term U.S. Treasury bonds C) Large-company stocks D) Short-term U.S. Treasury bonds E) High-quality long-term corporate bonds 34) One year ago, you purchased stock at a price of $32.50. The stock pays quarterly dividends of $.40 per share. Today, the stock is worth $34.60 per share. What is the total dollar return per share to date from this investment? A) $3.40 B) $3.70 C) $2.10 D) $2.50 E) $3.80 6 Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.