110年 - 110 國立高雄大學_碩士班招生考試_金融管理學系：財務管理#102156

選擇題 (20)

1. The problem created by asymmetric information before the transaction occurs is called ________, while the problem created after the transaction occurs is called ________. (A) costly state verification； free-riding (B) adverse selection； moral hazard (C) free-riding； costly state verification (D) moral hazard； adverse selection

2. By taking the long position on a futures contract of $100,000 at a price of 98 you are agreeing to ________ a ________ face value security for ________. (A) buy； $100,000； $98,000. (B) buy； $98,000； $100,000. (C) sell； $100,000； $98,000. (D) sell； $98,000； $100,000.

3. The Principal-Agent Problem arises: (A) because of the separation of ownership and control in a corporation. (B) because managers have much incentive to work in the interest of shareholders when this means working against their own self-interest. (C) Both a and b (D) None of the above

4. An investment is said to be liquid if the investment: (A) is traded in a financial market. (B) has a large bid-ask spread. (C) can easily be converted into cash with little discount. (D) has large day-to-day fluctuations in price.

5. The statement of financial position is also known as the: (A) statement of cash flows. (B) income statement. (C) statement of stockholder's equity. (D) balance sheet.

6. The British government has a consol bond outstanding that pays ₤100 in interest each year. Assuming that the current interest rate in Great Britain is 2% and that you will receive your first interest payment one year from now, then the value of the consol bond is closest to: (A) ₤2200. (B) ₤3000. (C) ₤3500. (D) ₤5000.

7. You are interested in purchasing a new car that costs $40,000. The dealership offers you a special financing rate of 6% APR (0.5%) per month for 48 months. Assuming that you make a down payment of $5,000 on the auto and you take the dealer's financing deal, then your monthly car payments would be closest to: (A) $842. (B) $729. (C) $822. (D) $647.

8. You are considering investing in a zero coupon bond that will pay you its face value of $1000 in ten years. If the bond is currently selling for $508.34, then the IRR for investing in this bond is closest to: (A) 10%. (B) 8.0%. (C) 7.5%. (D) 7.0%.

9. Which of the following statements is FALSE? (A) When a bond trades at a price equal to its face value, it is said to trade at par. (B) When a bond is trading at a discount, the price drop when a coupon is paid will be larger than the price increase between coupons, so the bond's discount will tend to decline as time passes. (C) As interest rates and bond yields rise, bond prices will fall. (D) Ultimately, the prices of all bonds approach the bond's face value when the bonds mature and their last coupon is paid.

10. Consider a project with the following cash flows in $: Assume the appropriate discount rate for this project is 10%. The profitability index for this project is closest to:
(A) 0.358 (B) 0.552 (C) 0.585 (D) 0.605

11. NUK Industries just announced that it will cut its dividend from $3.00 to $2.00 per share and use the extra funds to expand its operations. NUK dividends were expected to grow at a 2% rate, and its share price was $37.50. With the new expansion, NUK dividends are expected to grow at a 5% rat(E) NUK's share price following this announcement should be: (A) $40.00. (B) $20.00. (C) $37.50. (D) $30.00.

12. Consider a portfolio that consists of an equal investment in 20 firms. For each of these firms, there is a 70% probability that the firms will have a 16% return and a 30% probability that they will have a -8% return. Each of these firms' returns is independent of all others. The standard deviation of this portfolio is closest to: (A) 8.8%. (B) 4.2%. (C) 11.0%. (D) 2.5%.

13. Which of the following is consistent with the CAPM and efficient capital markets? (A) A security with a beta of 1 has a return last year of 8% when the market has a return of 12%. (B) A security with only systematic risk has an expected return that exceeds the risk-free interest rate. (C) A security with only diversifiable risk has an expected return that exceeds the risk-free interest rate. (D) Small stocks with a beta of 1.5 tend to have higher returns on average than large stocks with a beta of 1.5.

14. Suppose you invest $15,000 in Tesla stock and $25,000 in Coca Cola stock. You expect a return of 16% for Tesla and 12% for Coca Cola. What is the expected return on your portfolio? (A) 13.75% (B) 14.50% (C) 13.50% (D) 14.00%

15. Which of the following statements is FALSE? (A) The closer the correlation is to 0, the more the returns tend to move together as a result of common risk. (B) Volatility is the square root of variance. (C) Dividing the covariance by the volatilities ensures that correlation is always between -1 and +1. (D) If two stocks move together, their returns will tend to be above or below average at the same time, and the covariance will be positive.

16. Which of the following statements regarding leases is FALSE? (A) Leases may contain buyout options that allow the lessee to purchase the asset before the end of the lease term. (B) The cost of the lease will depend on the asset's residual value, which is its book value at the end of the lease. (C) Leases may allow the lessee to trade in and upgrade the equipment to a newer model at certain points in the lease. (D) Leases may include early cancellation options that allow the lessee to end the lease early (perhaps for a fee).

17. The merger of two companies in the same industry that make products required at different stages of the production cycle is called: (A) horizontal integration. (B) vertical integration. (C) economies of scope.(D) economies of scale.

18. Directors who are not employees, former employees, or family members of employees and who do not have existing or potential business relationships with the firm are called: (A) inside directors. (B) monitoring directors. (C) independent directors. (D) gray directors.

19. A currency forward contract specifies all of the following, EXCEPT: (A) the spot exchange rate. (B) the delivery date on which the exchange will take place. (C) the currencies to be exchanged. (D) the amount of currency to exchange.

20. The duration of a 5-year bond with 6% annual coupons trading at par is closest to: (A) 5.00 Years. (B) 2.52 Years. (C) 4.47 Years. (D) 6.25 Years.

申論題 (8)

(1)What is the present value of the £5 million cash inflow computed by first discounting the £s and then converting into dollars? (5 points)

(2)What is the present value of the £5 million cash inflow computed by first converting into dollars and then discounting? (5 points)

2. The following is the information of a mutual fund provided in a websit(E) Please briefly interpret the meaning of the terms and the numbers. (10 points)

3. According to the CAPM, the expected return on a risky asset depends on three components. Describe each component, and explain its role in determining expected return. (10 points)

4. What is internal rate of return (IRR)? List and briefly discuss the advantages and disadvantages of the IRR rule in the decision making of the capital budgeting. (10 points)

(1) Based on the net present value (NPV) method of analysis and given the information above, which project should you choose? Why? (5 points)

(2) Based upon the payback period and the information provided above, which project should you choose? Why? (5 points)

6. The following is the real time trading data of Apple In(C) options on January 12th, 2021. The expiration date of the following contracts is January 15th, 2021. The market price of Apple In(C) is 129.0. Please list the contract names which are in-the-money, at-the-money, and out-of-the-money respectively. (10 points)

110年 - 110 國立高雄大學_碩士班招生考試_金融管理學系：財務管理#102156

試卷資訊

選擇題 (20)

申論題 (8)