Q107. If trades can be arranged only when the market is open, such a market is called a:

Q108. The purchase of raw land with the intent of selling it later does not include the problem of

Q109. At the beginning of 2000, the Alaska Corporation had 2 million shares of common stock outstanding and no preferred stock. At the end of August, 2000, Alaska issued 600,000 new shares of common stock.
If Alaska reported net income equal to $8.8 million, what was the firm’s earnings per share for 2000?

Q110. A bond is trading at the ex-coupon transaction price which is 99-7/32 for a semi-annual pay, 9-5/8% coupon bond. 4.0 months have elapsed since the last coupon. What is the accrued interest for the buyer for $2,750,000 par value of this bond?

Q111. Consider a forward of 100 GOOG shares with Settlement Date of January 1, 20X6 while today is
January 1, 20X2. Price of GOOG today is $500. The 6-month discount rate is 2.5%. The stock is expected to pay a $20 dividend every 12 months, beginning from July 1, 20X2. What should the forward price be?

Q112. The goods available for sale, at retail prices, total $200,000. If the cost ratio for the period totals 60%, and the net sales at retail for the period total $120,000, what is the ending inventory at cost?

Q113. Data that describe characteristics of entities (such as persons, places, companies) at a given moment in time is called:

Q114. When interest rates are significantly higher than the coupon rate on a callable bond, the option-adjusted duration on that bond will be

Q115. Duration estimates for option-free bonds are

Q116. An item of inventory with an invoice price of $80, on which 50% is added as markup, has a current replacement cost of $82. Under LCM, which amount should be used to determine the value of this item of inventory?

Q117. Assume a small country imposes tariff.

After the tariff, the producer surplus will:

Q118. An investor invests 30 percent of his wealth in a risky asset with an expected rate of return of 15 percent and a variance of 400 and 70 percent in a T-bill that pays 6 percent. His portfolio’s expected return and standard deviation are __________ and __________, respectively.

Q119. Operating expenses for closed-end funds include:
I). load fees for purchase or sale of shares.
II). large allowances for marketing.
III). the discount of security value from NAV.

Q120. The Code of Ethics encompasses the concept(s) of:
I). integrity and respect.
II). independent judgment.
III). competence.
IV). contractual provisions.

Q121. An Indian software engineer works for a computer manufacturer in San Jose. He makes $60,000 a year and sends $10,000 to his family in India each year. The amount should be counted towards US GDP is:

Q122. Consider the following activity schedule:
Date Quantity Per Unit Total Cost Jan 1, Beginning Inventory 100 $18.00 $ 1,800.00 Mar 4, Purchase 400
19.00 7,600.00 Apr 1, Sold (50)
In a perpetual inventory system, what is the average cost per unit after the March 4 purchase?

Q123. Which of the following measurements can be found for a portfolio by simply taking the weighted average of the individual components.
I). Beta
II). Return
III). Standard deviation

Q124. Seabreeze Mortgage Securities has mortgage backed securities outstanding that have a monthly cash flow yield of 0.325%. What is their annualized cash flow yield?

Q125. A mortgage loan of $250,000 is obtained for 30 years. The annual interest rate is 12%. The first month’s payment is $2571. How much principal is repaid in the first month?

Q126. You are examining a portfolio composed of 33% money-market investments, 9.5% bonds, and
57.5% stocks. Last year, the return on the money-market investments was 4%; the return on bonds was
9 %, and the return on stocks was -11%. What is the contribution of stocks toward the portfolio weighted average return?

Q127. Which of the following is/are true about a cyclical industry?
I). It produces discretionary products, the consumption of which is dependent on economic optimism.
II). Its earnings track and amplify the business cycle.
III). It achieves an above-average rate of return even if the economy is in a recession.