chapter 2
maher purchased 100 shares of Chill Pill Pharmacueticles at $30 per share last spring and sold them in six months for $36 per share. The stock paid no dividend. What was Maher's holding period of return
20%
although there was a financial crisis in 07-10, some firms were able to weather the crisis. these firms had all of the following characteristics which were directly responsible for their ability to survive the crisis except
a business model which encouraged risk taking by management that paid off
foreign currency forward and future options are contracts that reflect
a choice
emerging market
australia
An example of a listed security exchange within the secondary market is
NYSE
an exchange rate quoted as 1.47 per british pound is known as a __ quote
direct
in an economy as a whole, the actual savings for a given period of time must__ the actual investment
equal
ex post returns differ from __ returns in that they represent __ values rather than __ values
ex ante; actual; estimated
commercial banks are a major source of term loans. these loans are used for
financing current assets like inventory and accounts receivable
eurodollars are us dollars that have been deposited to
foreign banks and foreign branches of US banks
which of the following if a correct statement about foreign currency futures
future contracts are not liquid
net savers
households
financial assets are all of the following except
inventory
all of the following are anomalies that have impacted the financial market in the past except
investing in blue chip stock
the interest rate at which banks in the eurocurrency market lend to each other is known as the
london interbank offer rate
There are highly publicized hedge fund problems, for example Julian Robertson's Tiger fund or Long Term Capital Management. The impact that this has had on hedge funds is:
minimal. They have continued to grow in size and number
securities not listed on exchanges are said to be traded
over the counter
if the spot rate for japanese yen is .00703 and the 180 day forward rate is .00717 the yen trading is at a
premium
in the __ market the firm receives the proceeds from the sake of its securities
primary
with semi strong form of market efficiency no investor can expect to earn excess returns based on an investment strategy using any __ information
publicly available
the difference between the bid price and the ask price on a security is the
spread
the main purpose of an economy financial system is to facilitate the transfer of funds form
surplus spending units to deficit spending units
the main purpose of an economy financial system is to facilitate the transfer of funds from
surplus spending units to deficit spending units
the interest rate in the eurodollar market is related to
the LIBOR
financial intermediaries are compensated for their services by
the interest rate spread
there are many reasons why there was a financial crisis in 2007. The most significant event closely associated with this crisis is
the real estate bubble
a savings and loan association is an example of which type of financial intermediary
thrift institution
in an efficient capital market, corporate diversification is
unnecessary