投资学题库.docx

1、投资学题库Chapter17Macroeconomic and industry Analysis1.A top down analysis of a firm starts with .D. the global economy2.An example of a highly cyclical industry is .A. the automobile industry3.Demand-side economics is concerned with .A.government spending and tax levelsB.monetary policyC.fiscal policyE

2、.A, B, and C4.The most widely used monetary tool is .C. open market operations5.The real, or inflation-adjusted, exchange rate, isC. the purchasing power ratio.6.The normal range of price-earnings ratios for the S&P 500 Index isD. between 12 and 257.Monetary policy is determined byC. the board of Go

3、vernors of the Federal Reserve System.8.A trough is .B. a transition from a contraction in the business cycle to the start of an expansion9.A peak is .A. a transition from an expansion in the business cycle to the start of a contraction10.If the economy is growing, firms with high operating leverage

4、 will experience .A. higher increases in profits than firms with low operating leverage.11.If the economy is shrinking, firms with high operating leverage will experience .A. higher decreases in profits than firms with low operating leverage.12.If the economyi s growing, firms with low operating lev

5、erage will experienceC. smaller increases in profits than firms with high operating leverage.13.If the economy is shrinking, firms with low operating leverage will experience .C. smaller decreases in profits than firms with high operating leverage.14.Industrial production refers to .C. the total man

6、ufacturing output in the economy.15.GDP refers to .D. the total production of goods and services in the economy16.A rapidly growing GDPin dicates a(n) economywith opportunityfor a firm to increase sales.D. expanding; ample17.A declining GDP indicates a(n) economy with opportunity fora firm to increa

7、se sales.A. stagnant; little18.The average duration of unemployment and changes in the consumer price index for services are .C. lagging economic indicators19.A firm in an industry that is very sensitive to the business cycle will likely have a stock beta .A. greater than20.If the economywere going

8、into a recession, an attractive industry to invest in would be the industry.B. medical services21.The stock price index and contracts and new orders for nondefense capital goods areA. leading economic indicators.22.A firm in the early stages of the industry life cycle will likely haveB.high risk.C.r

9、apid growthE. B and C23.Assume the . government was to decide to increase the budget deficit. Thisaction will most likely cause to increaseA.interest ratesB.government borrowingD.both A and B24.Assume the . government was to decide to decrease the budget deficit. Thisaction will most likely cause to

10、 decreaseA.interest ratesB.government borrowingD. both A and B25.Assume that the Federal Reserve decreases the money supply. This action will cause to decrease.C. investment in the economy26.If the currency of your country is depreciating, the result should be to exports and to imports.B. stimulate,

11、 discourage27.If the currency of your country is appreciating, the result should be to exports and to imports.C. discourage, stimulate28.Increases in the money supply will cause demand for investment and consumption goods to in the short run and cause prices to inthe long run.A. increase, increase29

12、.The North American Industry Classification System (NAICS)A.are for firms that operate in the NAFTA region.B.group firms by industry.D. A and B.30.If interest rates increase, business investment expenditures are likely to and consumer durable expenditures are likely to .D. decrease, decrease31.Fisca

13、l policy generally has a direct impact than monetary policyon the economy, and the formulation and implementation of fiscal policy is than that of monetary policy.B. more, slower32.Fiscal policy is difficult to implement quickly becauseA.it requires political negotiations.B.much of government spendi

14、ng is nondiscretionary and cannot be changed.D. A and B.33.InflationA.is the rate at which the general level of prices is increasing.B.rates are high when the economy is considered to be overheated.D. A and B.Two firms, A and B, both produce widgets. The price of widgets is $1 each.Firm A has total

15、fixed costs of $500,000 and variable costs of 50 cents per widget.Firm B has total fixed costs of $240,000 and variable costs of 75 cents per widget.The corporate tax rate is 40%. If the economy is strong, each firm will sell1,200,000 widgets. If the economy enters a recession, each firm will sell1,

16、100,000 widgets.34.If the economy enters a recession, the after-tax profit of Firm A will beC. $30,00035.If the economy enters a recession, the after-tax profit of Firm B will beE. none of the above36.If the economy is strong, the after-tax profit of Firm A will be D. $60,00037.If the economy is str

17、ong, the after-tax profit of Firm B will be38.Calculate firm As degree of operating leverage.A.39.Calculate firm Bs degree of operating leverage.C.40.Classifying firms into groups, such as provides an alternativeto the industry life cycle.A. slow-growersB. stalwartsD. A and B41.Supply-side economist

18、s wishing to stimulate the economy are most likely to recommendD. a decrease in the tax rate.42.Which of the following are not examples of defensive industries?B. durable goods producers.43.Which of the following are examples of defensive industries?A. food producers.C.pharmaceutical firms.D.public

19、utilitiesE.A, C and D44. is a proposition that a strong proponent of supply side economicswould most likely stress.B. Higher marginal tax rates promote economic inefficiency and thereby retard aggregate output as they encourage investors to undertake low productivity projects with substantial tax sh

20、elter benefits45.The industry life cycle is described by which of the following stage(s)?A. start-up.B. consolidation.D. A and B.46.In the start-up stage of the industry life cycleA.it is difficult to predict which firms will succeed and which firms will fail.B.industry growth is very rapid.D. A and

21、 B.47.In the consolidation stage of the industry life-cycleC. the performance of firms will more closely track the performance of the overall industry.48.In the maturity stage of the industry life cycleA.the product has reached full potential.B.profit margins are narrower.C.producers are forced to c

22、ompete on price to a greater extent.E. A, B , and C.49.In the decline stage of the industry life cycleA.the product may have reached obsolescence.B.the industry will grow at a rate less than the overall economy.C.the industry may experience negative growth.E. A, B , and C.50.A variety of factors rel

23、ating to industry structure affect the performance of the firm, includingA.threat of entry.B.rivalry between existing competitors.E. A and B.51.The process of estimating the dividends and earnings that can be expected from the firm based on determinants of value is calledD. fundamental analysis.52.T

24、he emerging market exhibiting the highest growth in real GDPin 2007 was A. China53.The emerging stock market exhibiting the highest . dollar return in 2007 wasA. China54.The life cycle stage in which industry leaders are likely to emerge is the C. consolidation stage.55.Investment manager Peter Lync

25、h refers to firms that are in bankruptcy or soon might be as E. turnarounds.56.A top-down analysis of a firms prospects starts withD. an assessment of the broad economic environment.57.Over the period 1999-2006, which of the following countries had a change in its real exchange rate that was favorab

26、le for . consumers who want to buy its goods?E. Japan58.Over the period 1999-2006, which of the following countries had a change in its real exchange rate that was most unfavorable for . consumers who want to buy its goods?A. Canada59.In recent years, P/E multiples haveB. risen dramatically.60.In re

27、cent years, P/E multiples for S&P 500 companies haveD. ranged from 12 to 25.61.The industry with the highest ROE in 2007 wasD. iron/steel.62.The industry with the lowest ROE in 2007 wasE. airlines.63.The industry with the lowest return in 2007 wasA. home construction.64.The industry with the highest

28、 return in 2007 wasB. oil equipment.65.Investors can invest in an industry with the highest expected returnby purchasing .B. not; industry-specific iShares66.Which of the following are key economic statistics that are used to describe the state of the macroeconomy?I)gross domestic productII)the unem

29、ployment rateIII)inflationIV)consumer sentimentV)the budget deficitE. I, II, III, IV, and V67.An example of a positive demand shock isE. a decrease in tax rates.68.An example of a negative demand shock isA.a decrease in the money supply.B.a decrease in government spending.E. A and B.69.During which

30、stage of the industry life cycle would a firm experience stable growth in sales?A. Consolidation70.The emerging stock market exhibiting the highest local currency return in 2007 wasB. ChinaE. China71.Sector rotationC. is shifting the portfolio more heavily toward an industry or sector thatis expecte

31、d to perform well in the future.72.According to Michael Porter, there are five determinants of competition.An example of is when new entrants to an industry our pressure on pricesand profits.A. Threat of Entry73.According to Michael Porter, there are five determinants of competition. An example of is when competitors seek to expand their share of themarket.B. Rivalry between Existing Competitors74.According to Michael Porter, there are five determinants of competition.An example of is whent he availability limits the prices that can b