How is it incomplete?

Q.13 Consider the following 3 choices (A) TMBThanachart Bank (B) WE Gold and Silver Equity Retirement Mutual Fund (C) Thalvivat Non-Life Insurance Public Company Which is(are) a correct example(s) of in the diagram above? Only (B) ~ Only (A) and (B) Only (A) and (C) Only (B) and (c) > All (A). (B) and (C) A)(B) 914 What is the maturity risk premium per year for financial instruments with the maturities of 5 years? Q 14 0 0.25% 2 0.50% Choose the closest choice or write down your own 3) 0.75% answer if it matches with none of the choices. . 1.00% 1.25% Use the following information to answer Question (Q) 14, Assume that the real risk-free rate per annum is constant. Various yields on financial assets and risk premiums (per annum) are provided in the table below Average annual inflation in the future 0.25% Maturity risk premium of financial instruments with a maturity up to 1 year 0.00% Liquidity premium for OTC-market-listed financial instruments 0.00% Liquidity premium for non-listed financial instruments 1.50% - Treasury bills with the maturity of 1 year 1.00% Government bonds with the maturity of 5 years 1.75% PTTEP debentures (rated AA) with the maturity of 5 years 2.25% "OTC-market-listed Q15 Other things constant, which is consistent with the risk-return tradeoff principle? O KTB charges Firm A 3% per year for a 1-year loan and 4% per year for a 1. month loan Six-month treasury bills yield 1% per year, while 1-month treasury bills yield 2.5% per year. * Five-year government bonds yield 4% per year, while Firm B's 5-year debentures yield 3% per year. Investors require 6,5% per year to buy OTC-listed debentures of Firm A while they request 6% per year to invest in non-listed debentures of Firm B. Investors require 15% per year on Firm B's debentures, while they ask for 20% per year for buying Firm B's common shares . Q 16 Which is most correct? In competitive markets, operating and financing cost advantages never enable firms to generate positively abnormal returns. 2 In competitive markets, it is impossible for companies to find profitable projects because success attracts intense competition that eventually lowers profits. In competitive markets, uninformed investors are cursed to fall prey to informed ones. In efficient markets, one could earn normal profits even if stock prices quickly and appropriately adjust to new information In efficient markets, the market prices of common shares are always equal to their intrinsic values Q.17 Which is most correct concerning agency problems discussed in the class? Since managers are the agents of the shareholders of a company, they always make decisions that are in line with the long-term best interests of the owners. Agency problems are potential conflicts of interest between (1) shareholders and managers and/or (2) the firm and the public. Potential agency problems do not arise when a proprietorship (with a single owner as a manager and without an employee) borrows some money from a commercial bank to fund its assets, Employees may take a firm's resources for unauthorized purposes decreasing the shareholders' wealth. However, shareholders can always find mechanisms to ameliorate fraud activities with no additional costs. 6 With some debt in a firm's capital structure, shareholders of the firm have incentives to invest in riskier projects because such actions lead to higher expected shareholders' wealth at the expense of the firm's creditors. ' . Q.13 Consider the following 3 choices (A) TMBThanachart Bank (B) WE Gold and Silver Equity Retirement Mutual Fund (C) Thalvivat Non-Life Insurance Public Company Which is(are) a correct example(s) of in the diagram above? Only (B) ~ Only (A) and (B) Only (A) and (C) Only (B) and (c) > All (A). (B) and (C) A)(B) 914 What is the maturity risk premium per year for financial instruments with the maturities of 5 years? Q 14 0 0.25% 2 0.50% Choose the closest choice or write down your own 3) 0.75% answer if it matches with none of the choices. . 1.00% 1.25% Use the following information to answer Question (Q) 14, Assume that the real risk-free rate per annum is constant. Various yields on financial assets and risk premiums (per annum) are provided in the table below Average annual inflation in the future 0.25% Maturity risk premium of financial instruments with a maturity up to 1 year 0.00% Liquidity premium for OTC-market-listed financial instruments 0.00% Liquidity premium for non-listed financial instruments 1.50% - Treasury bills with the maturity of 1 year 1.00% Government bonds with the maturity of 5 years 1.75% PTTEP debentures (rated AA) with the maturity of 5 years 2.25% "OTC-market-listed Q15 Other things constant, which is consistent with the risk-return tradeoff principle? O KTB charges Firm A 3% per year for a 1-year loan and 4% per year for a 1. month loan Six-month treasury bills yield 1% per year, while 1-month treasury bills yield 2.5% per year. * Five-year government bonds yield 4% per year, while Firm B's 5-year debentures yield 3% per year. Investors require 6,5% per year to buy OTC-listed debentures of Firm A while they request 6% per year to invest in non-listed debentures of Firm B. Investors require 15% per year on Firm B's debentures, while they ask for 20% per year for buying Firm B's common shares . Q 16 Which is most correct? In competitive markets, operating and financing cost advantages never enable firms to generate positively abnormal returns. 2 In competitive markets, it is impossible for companies to find profitable projects because success attracts intense competition that eventually lowers profits. In competitive markets, uninformed investors are cursed to fall prey to informed ones. In efficient markets, one could earn normal profits even if stock prices quickly and appropriately adjust to new information In efficient markets, the market prices of common shares are always equal to their intrinsic values Q.17 Which is most correct concerning agency problems discussed in the class? Since managers are the agents of the shareholders of a company, they always make decisions that are in line with the long-term best interests of the owners. Agency problems are potential conflicts of interest between (1) shareholders and managers and/or (2) the firm and the public. Potential agency problems do not arise when a proprietorship (with a single owner as a manager and without an employee) borrows some money from a commercial bank to fund its assets, Employees may take a firm's resources for unauthorized purposes decreasing the shareholders' wealth. However, shareholders can always find mechanisms to ameliorate fraud activities with no additional costs. 6 With some debt in a firm's capital structure, shareholders of the firm have incentives to invest in riskier projects because such actions lead to higher expected shareholders' wealth at the expense of the firm's creditors