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
The ________ rate is typically the nominal rate of interest on a three-month U.S. Treasury bill. A) expected B) real C) risk-free D) premium ANSWER C
Date: September 19th, 2020
The basic inputs to an effective financial analysis are a firm’s income statement and the balance sheet. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Nico Nelson, a management trainee at a large New York-based bank, is trying to estimate the real rate of return expected by investors. He notes that the 3-month T-bill currently yields 3 percent and has decided to use the consumer price index as a proxy for expected inflation. What is the estimated real rate of […]
Date: September 19th, 2020
