公司理财^ 习题库 Chap012.docVIP

CHAPTER 12 Some Lessons from Capital Market History I. DEFINITIONS RISK PREMIUM a 1. The excess return required from a risky asset over that required from a risk-free asset is called the: a. risk premium. b. geometric premium. c. excess return. d. average return. e. variance. VARIANCE b 2. The average squared difference between the actual return and the average return is called the: a. volatility return. b. variance. c. standard deviation. d. risk premium. e. excess return. STANDARD DEVIATION c 3. The standard deviation for a set of stock returns can be calculated as the: a. positive square root of the average return. b. average squared difference between the actual return and the average return. c. positive square root of the variance. d. average return divided by N minus one, where N is the number of returns. e. variance squared. NORMAL DISTRIBUTION d 4. A symmetric, bell-shaped frequency distribution that is completely defined by its mean and standard deviation is the _____ distribution. a. gamma b. Poisson c. bi-modal d. normal e. uniform GEOMETRIC AVERAGE RETURN d 5. The average compound return earned per year over a multi-year period is called the _____ average return. a. arithmetic b. standard c. variant d. geometric e. real ARITHMETIC AVERAGE RETURN a 6. The return earned in an average year over a multi-year period is called the _____ average return. a. arithmetic b. standard c. variant d. geometric e. real EFFICIENT CAPITAL MARKET e 7. An efficient capital market is one in which: a. brokerage commissions are zero. b. taxes are irrelevant. c. securities always offer a positive rate of return to investors. d. security prices are guaranteed by the U.S. Securities and Exchange Commission to be fair. e. security prices reflect available information. EFFICIENT MARKETS HYPOTHESIS a 8. The notion that actual capital markets, such as the NYSE, are fairly priced is called the: a. Efficient Markets Hypothesis (EMH)