投资学期末题库答案和分析(一).docx

TUTORIAL – SESSION 01CHAPTER 01Discuss the agency problem.Discuss the similarities and differences between real and financial assets. Discuss the following ongoing trends as they relate to the field of investments: globalization, financial engineering, securitization, and computer networks.CHAPTER 02Use the following to answer questions 1 to 3:Consider the following three stocks:1.The price-weighted index constructed with the three stocks is A)30 B)40 C)50 D)60 E)70 Answer: B Difficulty: EasyRationale: ($40 + $70 + $10)/3 = $40.2.The value-weighted index constructed with the three stocks using a divisor of 100 is A)1.2 B)1200 C)490 D)4900 E)49 Answer:?C???Difficulty:?Moderate?Rationale:?The?sum?of?the?value?of?the?three?stocks?divided?by?100?is?490:?[($40?x?200)?+?($70?x?500)?+?($10?x?600)]?/100?=?4903.Assume at these prices the value-weighted index constructed with the three stocks is 490. What would the index be if stock B is split 2 for 1 and stock C 4 for 1? A)265 B)430 C)355 D)490 E)1000 Answer: D Difficulty: ModerateRationale: Value-weighted indexes are not affected by stock splits.4.An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor is in the 20% marginal tax bracket, his or her after tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively. A)8% and 10% B)8% and 8% C)6.4% and 8% D)6.4% and 10% E)10% and 10% Answer: B Difficulty: ModerateRationale: rc = 0.10(1 - 0.20) = 0.08, or 8%; rm = 0.08(1 - 0) = 8%.5.A 5.5% 20-year municipal bond is currently priced to yield 7.2%. For a taxpayer in the 33% marginal tax bracket, this bond would offer an equivalent taxable yield of: A)8.20%. B)10.75%. C)11.40%. D)4.82%. E)none of the above. Answer: B Difficulty: Moderate Rationale: 0.072 = rm (1-t); 0.072 = rm / (0.67); rm = 0.1075 = 10.75%6.In order for you to be indifferent between the after tax returns on a corporate bond paying 8.5% and a