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Financial management

1. Which of the following has helped to eliminate the use of stock certificates by placing stock transactions on computers?

[amp_mcq option1=”Demat account” option2=”Securities Exchange Commission” option3=”Depository Trust Company” option4=”Federal Depository Insurance Corporation.” correct=”option3″]

Detailed SolutionWhich of the following has helped to eliminate the use of stock certificates by placing stock transactions on computers?

2. In regression of capital asset pricing model, an intercept of excess returns is classified as

[amp_mcq option1=”Sharpe’s reward to variability ratio” option2=”tenor’s reward to volatility ratio” option3=”Jensen’s alpha” option4=”tenor’s variance to volatility ratio” correct=”option3″]

Detailed SolutionIn regression of capital asset pricing model, an intercept of excess returns is classified as

3. Which of the following stresses on investor’s preference reorient dividend than higher future capital gains?

[amp_mcq option1=”Walter’s Model” option2=”Residuals Theory” option3=”Gordon’s Model” option4=”MM Model” correct=”option1″]

Detailed SolutionWhich of the following stresses on investor’s preference reorient dividend than higher future capital gains?

4. An indication in a way that variance of y-variable is explained by x-variable which is shown as

[amp_mcq option1=”degree of dispersion is one” option2=”degree of dispersion is two” option3=”degree of dispersion is three” option4=”degree of dispersion is four” correct=”option2″]

Detailed SolutionAn indication in a way that variance of y-variable is explained by x-variable which is shown as

5. Yield on bond is 7% and market required return is 14% then market risk premium would be

[amp_mcq option1=”2.00%” option2=”21.00%” option3=”0.50%” option4=”7.00%” correct=”option1″]

Detailed SolutionYield on bond is 7% and market required return is 14% then market risk premium would be

6. Condition in which company’s imports are more than its exports is classified as

[amp_mcq option1=”foreign trade” option2=”foreign trade deficits” option3=”foreign trade surplus” option4=”trade surplus” correct=”option2″]

Detailed SolutionCondition in which company’s imports are more than its exports is classified as

7. An original investment is Rs 30 and an expected capital gain is Rs 10 then an expected final stock price will be

[amp_mcq option1=”Rs 20.00″ option2=”Rs 40.00″ option3=”-Rs 40.00″ option4=”-Rs 20.00″ correct=”option2″]

Detailed SolutionAn original investment is Rs 30 and an expected capital gain is Rs 10 then an expected final stock price will be

8. A higher accounts receivable turnover ratio means__________.

[amp_mcq option1=”lower debt collection period” option2=”higher debt collection period” option3=”lower sales” option4=”higher sales” correct=”option1″]

Detailed SolutionA higher accounts receivable turnover ratio means__________.

9. EOQ determines the order size when:

[amp_mcq option1=”Total Order Cost is Minimum” option2=”Total Number of Order is least” option3=”Total Inventory Cost is minimum” option4=”None of the above” correct=”option3″]

Detailed SolutionEOQ determines the order size when:

10. The largest single institutional owner of common stocks is________.

[amp_mcq option1=”mutual funds” option2=”insurance companies” option3=”pension funds” option4=”commercial banks” correct=”option2″]

Detailed SolutionThe largest single institutional owner of common stocks is________.

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