Quiz Ch 07 – Alpha Measurement
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What does a stock’s alpha quantify?
Quiz Ch 07 – Amram Inc.
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
Which statement accurately reflects the necessary coupon rate for Amram Inc.’s second bond—a convertible, callable bond with a sinking fund—to initially sell at par?
Quiz Ch 07 – Analysis of a 10-Year Corporate Bond Selling at Par
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
For a 10-year corporate bond selling at par ($1,000) with an annual coupon of 9%, which statement is TRUE?
Quiz Ch 07 – Analysis of Bond Price and Characteristics
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
For a 15-year bond with a $1,000 face value currently priced at $850, which statement is TRUE?
Quiz Ch 07 – Analyst and Stock Price Analysis Methods
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What conclusion can be drawn about an analyst who uses historical stock price cycles to guide their investment decisions?
Quiz Ch 07 – Applicability of SML and CML
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
For which types of investments is the Security Market Line (SML) applicable, and for which types is the Capital Market Line (CML) applicable?
Quiz Ch 07 – Arbitrage Opportunity Profit Strategy
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What strategy enables individuals to gain from an arbitrage opportunity?
Quiz Ch 07 – Assessing Bond Price Risk
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
Which bond exhibits the highest price risk?
Quiz Ch 07 – Assumptions in the CAPM Model
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What assumptions does the simple CAPM model make?