Posted: July 12th, 2016
1. Which one is false for the capital asset pricing model (CAPM)?
a. CAMP is based on fundamental analysis
b. CAPM assumes that only systematic risk is rewarded in the market, and unsystematic risk can be diversified by making portfolio
c. CAMP is based o the positive relationship between risks and returns
d. CAMP can be used to forecast and expected return of individual security
2. Which one is false?
a. to measure the risk, CAMP assumes a possibility of mispricing in the market
b. a higher risk measure means that investors require more return
c. the risk is measured based on the relation between market portfolio return and individual security return
d. the risk measure in CAMP is the beta
3. What income measurement approach is comprehensive income based?
a. traditional accounting transactions approach
b. revenue recognition approach
c. capital maintenance approach
d, cash-based approach
4. Which one is false?
a. IASB has no enforcements authority for company’s adoption of international accounting standards
b. FASB is not a member of IASB
c. On Dec. 17 2003, IASB published the revised international accounting standards
d. to list their securities in the US markets, all of the foreign companies must recast their financial statements based on international accounting standards
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