兹维博迪金融学第二版试题库7TB.docVIP

PAGE 7 Chapter Seven Principles of Market Valuation This chapter contains 30 multiple choice questions, 10 short problems and 5 longer problems. Multiple Choice In regard to an asset, the ________ is defined as the process well-informed investors must pay for it in a free and competitive market. analyst value technical value competitive value fundamental value Answer: (d) In corporate finance decision making, an extremely important rule is to choose the investment that ________ current shareholders’ wealth. minimizes maximizes provides zero change in jeopardizes Answer: (b) In asset valuation, the method used to accomplish the estimation depends on the ________. number of participants quality of calculating instruments richness of the information set available geographic location Answer: (c) The ________ states that in a competitive market, if two assets are equivalent, they will tend to have the same market price. Law of Real Interest Rates Law of One Price Law of Price Equivalency Law of Futures Answer: (b) The Law of One Price is enforced by a process called ________, the purchase and immediate sale of equivalent assets in order to earn a sure profit from a difference in their prices. swapping maximization arbitrage speculation Answer: (c) ________ refers to the totality of costs such as shipping, handling, insuring, and broker fees. Shipping costs Transaction costs Installation costs Insurance costs Answer: (b) The Law of One price is a statement about the price of one asset ________ the price of another. absolute to relative to multiplied by independent of Answer: (b) If an entity borrows at a lower rate and lends at a higher rate, this is an example of ________. opportunity arbitrage interest-rate arbitrage exchange arbitrage nominal arbitrage Answer: (b) If arbitrage ensures that any three currencies are freely convertible in competitive markets, then: it is enough to know only one exchange rate to determine the third we can estimate two exchange rates