1) You are in charge of a project that has a degree of operating leverage of 1.09. What will happen to the operating cash flows if the number of units you sell increase by 6.2 percent?
A 6.20 percent decrease
B 6.76 percent increase
C 5.69 percent increase
D 5.69 percent decrease
2) A stock had returns of 14 percent, 13 percent, -10 percent, and 7 percent for the past four years. Which one of the following best describes the probability that this stock will lose no more than 10 percent in any one year?
A Greater than .5 but less than 1.0 percent.
B Greater than 84 percent but less than 97.5 percent.
C Greater than 2.5 percent but less than 16 percent. .
D Greater than 1 percent but less than 2.5 percent.
3) A stock had returns of 16 percent, 4 percent, 8 percent, 14 percent, -9 percent, and -5 percent over the past six years. What is the geometric average return for this time period?
A 5.60 percent
B 4.67 percent
C 4.26 percent
D 5.13 percent
4 Assume all stock prices fairly reflect all of the available information on those stocks. Which one of the following terms best defines the stock market under these conditions?
A Blume's market
B Zero volatility market
C Efficient capital market
D Evenly distributed market
1) You are in charge of a project that has a degree of operating leverage of 1.09. What will happen to the operating cash flows if the number of units you sell increase by 6.2 percent? | ||||||
A 6.20 percent decrease | ||||||
B 6.76 percent increase | ||||||
C 5.69 percent increase | ||||||
D 5.69 percent decrease
|
3) A stock had returns of 16 percent, 4 percent, 8 percent, 14 percent, -9 percent, and -5 percent over the past six years. What is the geometric average return for this time period? |
A 5.60 percent |
B 4.67 percent |
C 4.26 percent |
D 5.13 percent |
4 Assume all stock prices fairly reflect all of the available information on those stocks. Which one of the following terms best defines the stock market under these conditions? |
A Blume's market |
B Zero volatility market |
C Efficient capital market |
D Evenly distributed market |