48. Fed discount rate = 4 % U. S. Treasury Bond rate = 2 % Inflation rate = 1 % which one of the following is most likely the nominal risk-free rate of return in the U. S.?
49. Assume the following values for an investment: Risk-free rate of return = 2 % Expected rate of return = 9 % Beta = 1.4 which one of the following is the required rate of return for the investment?
50. Which one of the following is not an element in the capital asset pricing model formula?
51. A graph that plots beta would show the relationship between
52. Which one of the following is not a factor routinely considered in valuing a stock option?
53. Charles Allen was granted options to buy 100 shares of Dean Company stock. The options expire in one year and have an exercise price of $ 60.00 per share. An analysis determines that the stock has an 80 % probability of selling for $ 72.50 at the end of the one-year option period and a 20 % probability of selling for $ 65.00 at the end of the year. Dean Company ' s cost of funds is 10 %. Which one of the following is most likely the current value of the 100 stock options?
54. Which one of the following is not a limitation of the basic Black- Scholes option pricing model?
55. Which one of the following characteristics is not an advantage of the Black-Scholes option pricing model?
56. Which one of the following options, A through D, is most likely to have the greatest value( all other things being equal)?
57. Assume the following abbreviated Income Statement: In a common-size income statement, which one of the following percentages would be shown for Finance Expense?