Please consider the following

and determine the closest definition of the terms:

Which of the following best explains why a company

with a lower P/E ratio is not always a better investment than one with a higher

P/E ratio?

Review the following funding instruments and determine

their appropriate classification under Basel III regulatory capital

definitions.

According to the efficient market

hypothesis (EMH), which of the following statements are correct:  

I. Security prices are not fair measures of value

II.  

Investors

are unlikely to be able to consistently find undervalued or overvalued

securities

III. 

Passively

managed funds such as, index fund following the market will not outperform

actively managed funds 

IV.  

Technical

analysis will not be an effective investment strategy under weak form

efficiency

You have been tracking the performance of XYZ Construction Ltd (“XYZ”) and are considering a potential investment. The company has just commenced a new financial year, and its shares are currently priced at $42 each. XYZ retains 35% of its annual earnings for reinvestment and has maintained a steady dividend growth rate of 3% per annum.

If your required rate of return is 9%, and you expect the company to maintain its dividend growth indefinitely, what would be your estimate of:

(i) the dividend per share at the end of the current financial year?

Please consider the following statements and select the most

representative function of a bank:                                                                                                 

Ms Brown is reviewing her investment portfolio of

Australian shares with her advisor. Which of the following statements best

explains why investors are typically not compensated for taking on unsystematic

risk?

Which of the following is an example of an intangible

factor that could influence share price movements beyond technical and

fundamental analysis?

Which of the following best illustrates the agency

problem between managers and shareholders in a corporation?

Which of the following

statements about off-balance sheet transactions are correct? 

I. Underwriting commitments

are not recorded on the balance sheet because they are contingent in nature.

II. Off-balance sheet activities have become a less significant source of income

for modern banks.

III. Off-balance sheet commitments refer to contractual obligations that have not

yet resulted in a financial asset or liability on the balance sheet.

IV. Interest rate swaps entered into by CBA with its customers are recorded as

part of the bank’s liabilities.