The ________ is the compound annual rate of interest earned on a debt security purchased on a given date and held to maturity. A) risk premium B) yield curve C) risk-free rate D) yield to maturity ANSWER D
Date: September 19th, 2020
The use of differing accounting treatments—especially relative to inventory and depreciation—can distort the results of ratio analysis, regardless of whether cross-sectional or time-series analysis is used. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Benchmarking is a type of cross-sectional analysis in which a firm’s ratios are compared to a key competitor firm within the same industry, primarily to identify areas for improvement. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The yield curve in an economic period where higher future inflation is expected would be ________. A) upward-sloping B) flat C) downward-sloping D) lognormal ANSWER A
Date: September 19th, 2020
A(n) ________ is a graphic depiction between the maturity and rate of return for bonds with similar risks. A) yield curve B) supply function C) risk-return profile D) aggregate demand curve ANSWER A
Date: September 19th, 2020
A yield curve that reflects relatively similar borrowing costs for both short-term and long-term loans is called as ________. A) normal yield curve B) inverted yield curve C) flat yield curve D) lognormal curve ANSWER C
Date: September 19th, 2020
Time-series analysis evaluates the performance of various firms at the same point in time using financial ratios. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Benchmarking is a type of time-series analysis in which the firm’s ratio values are compared to those of a key competitor or group of competitors, primarily to isolate areas of opportunity for improvement. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A(n) ________ yield curve reflects higher expected future rates of interest. A) upward-sloping B) flat C) downward-sloping D) linear ANSWER A
Date: September 19th, 2020
Ratios merely direct an analyst to potential areas of concern and it does not provide conclusive evidence as to the existence of a problem. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
