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A company recently increased its earnings per share figure by 10%. This means that the company’s:
A company recently increased its earnings per share figure by 10%. This means that the company’s:A . Share base has widenedB . Ability to pay dividends has improvedC . Market share has risenD . P/E ratio has increasedView AnswerAnswer: B Explanation: An increase in earnings per share (EPS) indicates improved...
Once a company reaches the point known as the minimum efficient scale, the "theory of the firm" suggests that the company should:
Once a company reaches the point known as the minimum efficient scale, the "theory of the firm" suggests that the company should:A . Halt its output expansionB . Accelerate its output expansionC . Increase its unit priceD . Decrease its unit priceView AnswerAnswer: D Explanation: Minimum Efficient Scale: This is...
The Arbitrage Pricing Theory (APT) seeks to determine what factors influence security price movements using:
The Arbitrage Pricing Theory (APT) seeks to determine what factors influence security price movements using:A . Mean variance analysisB . Beta testingC . Technical analysisD . Regression analysisView AnswerAnswer: D Explanation: Understanding APT: The Arbitrage Pricing Theory (APT) uses statistical models to identify the factors influencing security prices. Regression analysis...
A rise in living standards will tend to:
A rise in living standards will tend to:A . Reduce the demand for commoditiesB . Have no effect on commoditiesC . Increase government participation in the commodities marketsD . Create an increased demand for commoditiesView AnswerAnswer: D Explanation: Understanding the Question Context: The question examines the relationship between rising living...
Why might an expansionary fiscal policy lead to future inflationary pressures?
Why might an expansionary fiscal policy lead to future inflationary pressures?A . It causes higher interest ratesB . Workers demanding higher wagesC . Due to a significant fall in private sector investmentD . Due to the effect of time lagView AnswerAnswer: B Explanation: Expansionary Fiscal Policy and Inflation: Expansionary fiscal...
Why might this happen?
When investors wish to sell units in mutual funds, there is a risk of the fund being gated. Why might this happen?A . To ensure any tax deferral benefits are not lostB . To ensure that the commission as a proportion of the fund remains smallC . Because the investor...
If an investor expects to receive a bullet payment, they are likely to be invested in a:
If an investor expects to receive a bullet payment, they are likely to be invested in a:A . Treasury bondB . Zero coupon bondC . Convertible bondD . Premium bondView AnswerAnswer: B Explanation: Understanding Bullet Payments: A bullet payment is a single payment of principal and interest at maturity. Zero...
The coupon on a bond has been expressed in real terms, rather than as a nominal amount.
The coupon on a bond has been expressed in real terms, rather than as a nominal amount. This is because:A . It is an inflation-linked bondB . Its redemption date is longer than 10 yearsC . It is an unsecured instrumentD . It is a bearer bondView AnswerAnswer: A Explanation:...
The UCITS regulations have been integral to introducing a common format for:
The UCITS regulations have been integral to introducing a common format for:A . Company accountsB . Corporate actionsC . Key investor information documentsD . Trade settlementView AnswerAnswer: C Explanation: The UCITS (Undertakings for the Collective Investment in Transferable Securities) regulations mandate that fund managers provide a standardized Key Investor Information...
If the interest is credited to the account at the end of the year and the investor leaves the money in the account for 5 years, how much money will be in the account at the end of the fifth year?
An investor deposits £1,000 into an account that pays interest at the rate of 3% per year. If the interest is credited to the account at the end of the year and the investor leaves the money in the account for 5 years, how much money will be in the...
