10) Preferred Stock Payment Obligations Are Typically ______

10) Preferred stock payment obligations are typically ______. A. viewed like debt obligations. B. issued with a maturity date. C. valued as an annuity. D. none of these

11) If the yield to maturity for a bond is less than the bond's coupon rate, then the market value of the bond is ______. A. greater than the par value. B. equal to the par value. C. cannot tell D. less than the par value.

12) Assume that the par value of a bond is $1,000. Consider a bond where the coupon rate is 9% and the current yield is 10%. Which of the following statements is true? A. The current yield was a lot less than 9% when the bond was first issued B. The market value of the bond is more than $1,000 C. The market value of the bond is less than $1,000 D. The current yield was a lot greater than 9% when the bond was first issued

13) Certain countries have restrictions. In practice, U.S. investors have NOT invested very much internationally. Possible factors include ______. A. non-listing of foreign securities on U.S. stock exchanges. B. foreign tax considerations. C. efficiency in converting currencies. D. all of these

14) Certain countries have restrictions. In practice, U.S. investors have NOT invested very much internationally. Possible factors include ______. A. lower transaction costs. B. expropriation risk. C. firm-specific risk. D. all of these

15) According to the CAPM, the expected return for a portfolio is determined by the portfolio's. A. variance. B. beta. C. standard deviation. D. none of these

16) Which of these investments would you expect to have the highest rate of return for the next 20 years? A. U.S. Treasury bills B. intermediate-term U.S. government bonds C. anybody’s guess D. long-term corporate bonds

17) The Principle of ______implies that the expected return for an asset equals its required return. A. Capital Market Efficiency B. Comparative Advantage C. Signaling D. Risk-Return Trade-Off

18) According to the Principle of Risk-Return Trade-Off, investors require a higher return to compensate for ______. A. lack of diversification B. less risk C. greater risk D. diversification