An investor most concerned with reinvestment risk would be least likely to:（)。

Which of these embedded options most likelybenefits the investor？

A. The floor in a floating-rate security

B. An accelerated sinking fund provision

C. The call option in a fixed-rate security

after purchase, the yield required by the market increases. The investor would then most likely have to sell the bond at:

A.par.

B.a discount.

C.a premium.

hase, which of these is most likely to be the lowest loan rate available？

A. Term repo rate

B. Call money rate

C. Broker loan rate

y due to:

A. investor expectations that short-term interest rates will fall in the future.

B. an increasing yield premium required by investors for bearing interest rate risk.

C. different levels of supply and demand for short-term and long-term funds.

the following characteristics:

· The firm maintains a constant dividend payout ratio.

· Goodwill and patents account for a high proportion of the firm’s assets.

· The firm’s revenues and earnings are highly correlated with the business cycl

A.Furthermore, the investor focuses on the firm’s capacity to pay dividends rather than expected dividends. Considering the characteristics, the investor will most likely use which of the following valuation models？

B.Gordon dividend growth model

C.Asset-based valuation model

D.Free cash flow to equity model

A company has issued non-callable, non-convertible preferred stock with the following features:

· Par value per share: $10

· Annual dividend per share: $2

· Maturity: 15 years

An investor’s required rate of return is 8%, and the current market price per share of the preferred stock is $25. By comparing the estimated intrinsic value with the market price of the preferred stock, the most likely conclusion is that the preferred stock is:

A.fairly valued at $25.00.

B.undervalued by $15.00.

C.overvalued by $4.73.

ond A allows the issuer to call the bond before stated maturity, Bond B allows the investor to put the bond back to the issuer before stated maturity, and Bond C contains no embedded options. The bonds are otherwise identical. The manager tells his assistant, “Bond A and Bond B should have larger nominal yield spreads to a U.S. Treasury than Bond C to compensate for their embedded options.” Is the manager most likely correct？

A. Yes.

B. No, Bond A’s nominal yield spread should be less than Bond C’s.

C. No, Bond B’s nominal yield spread should be less than Bond C’s.

听力原文： It's no secret that throughout history common stock has outperformed most financial instruments. If an investor plans to have an investment for a long period of time, then their portfolio should be comprised mostly of stocks ; however, investors who don't have this kind of time should diversify their portfolios. For this reason, the concept of "asset allocation" was developed. Asset allocation is an investment portfolio technique that aims to balance risk and create diversification by dividing assets among major categories. The underlying principle of asset allocation is that the older a person gets, the less risk he or she should face. After you retire you may have to depend on your savings as your only source of income.

28. Throughout history, what kind of stock has outperformed most financial instruments？

29.What is the purpose of asset allocation？

30.What is the principle underlying the concept of asset allocation？

(28)

A．preferred stock

B．common stock

C．concept stock

D．cynical stock

trading partners to transparent and non-discriminatory trade rules, which the WTO then enforces even handedly. Since most governments operate on the premise that opening domestic markets is a concession to be traded for access to foreign markets, multilateral liberalization is often the most effective route to free trade.

A successful WTO round requires two big bargains to be struck: a transatlantic deal between America and the EU and a north-south deal between the rich and the poor. Yet at Seattle this year there is a long way to go before such broad bargains can be considered, let alone struck.

America wants a few priority issues to be settled. Its list includes an extension of the duty-free status of e-commerce, a broader IT pact, reform. of the WTO dispute settlements system, increased WTO transparency and the phase out of tariffs in eight sectors including chemicals, energy products and environmental products. The EU on the other hand professes to want a more comprehensive approach that focuses on removing tariff peaks for such imports as textiles, glass and footwear, but would preserve tariff preferences for developing countries.

The biggest obstacle may be the insistence of many developing countries that they will block further liberalization until their gripes over the Uruguay round are addressed They want their obligations in areas such as intellectual property, investor protection, subsidies and anti-dumping to be eased. They argue that the Uruguay round has failed to deliver expected benefits in such areas as agriculture and textiles.

Though by no means a monolithic block, the developing countries share a feeling that whatever the promise of liberalization at the WTO, rich countries will Conspire to keep their markets closed. Indeed, the EU insists that freeing trade should be "controlled, steered and managed according to the concerns of EU citizens". That is in keeping with a view, widespread on the continent, that "a protectionist trade policy is a price readily paid for political objectives".

However great these obstacles are, they could be overcome if America were still leading the drive for freer world trade. With its economy doing well, greater access to foreign markets seems a less pressing priority. The Clinton administration is unwilling to make politically painful concessions required to achieve that aim. So there is a possibility that the Seattle round will turn out to be a fiasco. If that happens, it will encourage the anti-WTO groups to go on the offensive. America, the EU and Japan would increasingly be tempted by managed trade.

The WTO's transparent and non-discriminatory rules require all member countries to ______.

A．exchange domestic markets for foreign markets

B．make concessions in foreign trade

C．adopt the most effective route to free trade

D．enforce trade policies even handedly