Part I Multiple choice (4 points)
DE THI KET THUC HOC PHAN Tén hoc phan: Investment
TRƯỜNG ĐẠI HỌC NGÂN HÀNG TP HỒ CHÍ MINH KHOA TÀI CHÍNH Đề 2 Thời gian làm bài: 60 phút
1 Reasonable ESOP (Employee Stock Ownership Plan) policy is:
A) Issued to as many employees as possible B) Only Issued to CEOs
C) ESOP rate must be lower than EPS growth
rate
D) AandC
2 A strategy whereby an investor seeks out stocks with good growth potential and grow at an above-average rate compared to its industry:
A) CANSLIM
B) Growth Investing strategy C) Value Investing Strategy D) Growth At A Reasonable Price
3 In the investment process, which step must be identified before Asset allocation
A) Looking for investment opportunities B) Identify the level of risk tolerance C) Seeking about the law on investment Market timing
4 DDM is suitable for the following companies A) Company is in the steady growth period B) Company has policy which spend most of EAT to pay dividends
C) Company has a lower dividend growth rate than the discount rate
D) All above
5 Fundamental analysis is: 6 Five competitive advantages exclude: A) Handling economic and firm information A) Trademark
such as GDP, Inflation, FDI, Industry analysis, firm analysis B) Handling the chart, prices and volumes, patterns C) Using mathematical models D) B and C B) License of invention C) Number and size of suppliers D) Price 7 Profitability ratios exclude: A) Return on assets B) Investment turnover C) Gross profitability D) Debt to equity ratio
8 If A buys 10 shares at the price of VND 50,000 per share, after 4 years, A will sell 10 shares at the price of VND 70,000 per share What is the investor's annual rate of return? A) 8.112 % B) 8.776% C) 9.102% D) 10.00 %
9 Investors holding convertible bonds have face value of VND 1,000,000, convertible price is VND 50,000/share, market price of stock is VND 55,000/share The market price of bonds is VND
1,120,000 The company requires to buy back 10 Suppose that you buy a perpetual bond that pays indefinitely you $ 50-per-year And you require an investment rate of 12% The price of this bond will be:
A) 400.67 $
Trang 2bonds at VND 1,110,000 If you are an investor, which option would you choose?
A) Convert bonds into common stock B) Selling bonds to the company C) Selling bonds on the market D) None of above B) 416.67 $ C) 420.50 $ D) 425.23$
11 Factors affecting bond interest rates include: A) Market interest rate
B) Reputation of the issuing organization C) Term to maturity
D) All of above
12 Which statement is wrong about ex coupon date (ex interest date)
A) The ex-coupon date is the first day the bond starts trading without the coupon attached to it
B) If the debt security is purchased on or after the ex-coupon date, the seller retains the right to receive the next due interest payment
C) The buyer will have right to receive next interest payment if he buys the bond on ex coupon date D) All of above are wrong 13 Which statement is wrong about Interest Rate Risk?
A) Generally, rising interest rates will result in falling bond prices
B) Interest rate impacts mainly on fixed-rate bonds, little impacts on floating rate bond
C) The longer the maturity time, the greater the effect of interest rates
D) The higher the coupon rate, the greater the effect of the interest rate
14 Which statement is correct about duration? A) When the expiration time is increased, Macaulay duration will increase
B) When coupon rate is increased, Macaulay duration will decrease
C) When YTMis duration will decrease
D) All of above are correct
increased, Macaulay
15 At the end of 2012, Mr G invests in Amazon stock He bought 10,000 shares, the price of 1 share was 25,000 VND At the end of 2013: The company paid dividend by stock at a rate of 30% At the end of 2014: The company paid 22% cash dividend Calculates the dividend which Mr G receives for the total number of shares
A) 22.000.000 VND B) 22.660.000 VND C) 23.233.000 VND D) 23.540.000 VND
16 Assume that retention ratio is 65%, ROE is 30.99% and discount rate is 25%, please calculate the intrinsic P/E A) 8.55 B) 8.66 C) 7.00 D) 7.50 17 An head and shoulders pattern is indicative: A) Price increases B) Price decreases C) Stay the same
D) Price does not increase, does not decrease
18 A investor longs put contract, he is expecting that:
A) The price will raise B) The price will decrease
C) The price will fluctuate strongly D) Not enough information to decide
19 Which statement is wrong about the
relationship between bond price and maturity 20 investors who believe the price will fluctuate in the near future but are not sure about the
Trang 3
A) If the nominal interest rate is less than the | direction of movement will follow: market interest rate, the longer the term to A) Straddle strategy
maturity is, the lower the price is B) Covered call strategy B) If the nominal interest rate is greater than C) Protective put strategy the market interest rate, the longer the term to D) Bull Call Spread maturity is, the higher the price is
C) If the nominal interest rate is equal to the market interest rate, the bond price will depend on the maturity date and be equal to the face value
D) All of above are wrong
Part Il: Writing test (6 points)
1 A10% nominal interest rate bond, 4-year term to maturity, face value of US $ 200, sold for $ 207.87, discount rate of 7%
a) Calculate the Duration
b) Ifinterest rates rise to 7.1%, how will bond prices change?