The lowest default risk and interest rate risk

Assignment Help Financial Management

Reference no: EM131589584

1. A market in which stock prices fully reflect all information that is available to investors is called

a. inefficient.

b. overvalued.

c. factored.

d. efficient.

2. Which of the following is true about MERs?

a. Mutual funds with lower MERs tend to outperform those with higher.

b. You need to subtract the MER from the posted return to figure out performance.

c. All types of mutual finds have similar MERs.

d. MERs only include manager and sales expenses.

3. What is the present value of $1000 to be received 15 years from today, assuming an interest rate of 6% per year?

a. $404.

b. $411.

c. $417.

d. $388.

4. Given the following ATT Ltd. bond information: $1000 par value, maturity 2023 Dec 22, semi-annual coupon 7.75 percent, price 105.50 and yield 7.4 percent. How much would a $1000 par value ATT Ltd. bond cost as of the day of this listing?

a. $105.50

b. $740

c. $1055

d. $1000

5. Which of the following bond mutual funds has both the lowest default risk and interest rate risk?

a. Short -term corporate

b. Short-term federal

c. Short-term high-yield

d. T-bill

Reference no: EM131589584

Questions Cloud

Monitoring liquidity includes tracking your : Mutual funds pool money from investors to purchase portfolios of investments. Monitoring liquidity includes tracking your

Invest in foreign bonds as well as canadian bonds are called : Mutual funds that invest in foreign bonds as well as Canadian bonds are called. Bonds are certificates representing partial ownership of a firm.

Represents equity or ownership of corporation : The security that represents equity or ownership of a corporation is. If your retirement plan has a vesting requirement, it must be

Compute the bond yield to maturity : Fingen's 19-year exist1.000 par value bonds pay 9 percent interest annually. Compute the bond's yield to maturity.

The lowest default risk and interest rate risk : Which of the following bond mutual funds has both the lowest default risk and interest rate risk?

What is the primary problem with dying intestate : What is the primary problem with dying intestate? Which of the following is not a cash outflow? Which of the following applies to the CPP?

The disadvantage of leasing vehicle : The least risky, lower interest paying bonds are. The disadvantage of leasing a vehicle is.

Describe the features of common stock : Briefly explain and discuss the difference between a call for sinking fund purposes and a refunding call. Describe the features of common stock.

Schedule for the order of components of your financial plan : You wish to own stock while keeping your risk as low as possible. The best schedule for the order of the components of your financial plan would be.

User Account

All Pages