Financial management Archives - MCQ and Quiz for Exams

1. The random walk hypothesis is most related to the___________.

weak-form EMH

semi strong-form EMH

semi weak-form EMH

strong-form EMH

Detailed SolutionThe random walk hypothesis is most related to the___________.

2. Owners of corporation having certain rights and privileges are considered as

special stockholders

common stockholders

public stocks

enactive stocks

Detailed SolutionOwners of corporation having certain rights and privileges are considered as

3. Stock issued by company have lower rate of return because of

high market to book ratio

low book to market ratio

low market to book ratio

high book to market ratio

Detailed SolutionStock issued by company have lower rate of return because of

4. Bond risk premium is 3% and bond yield is 10.2% then cost of common stock will be

3.40%

13.20%

7.20%

30.60%

Detailed SolutionBond risk premium is 3% and bond yield is 10.2% then cost of common stock will be

5. Bonds that do not pay original coupon payment but payment is made from additional bonds are classified as

payment in-kind bonds

payment off-kind bonds

kind payment

additional bond

Detailed SolutionBonds that do not pay original coupon payment but payment is made from additional bonds are classified as

6. Which of the following is not a usual type of lease arrangement?

Sale & Leaseback

Goods on Approval

Leverage Lease

Direct Lease

Detailed SolutionWhich of the following is not a usual type of lease arrangement?

7. Variable cost per unit.

varies with the level of output

remains constant irrespective of the level of output

changes with the growth of the firm

does not change with volume of production

Detailed SolutionVariable cost per unit.

8. Method of matching orders by posting orders of buying and selling is classified as

electronic communication network

electronic dealer network

electronic stock network

electronic order network

Detailed SolutionMethod of matching orders by posting orders of buying and selling is classified as

9. Liquidity risk_____________.

is the risk that investment bankers normally face

is lower for small OTCEI stocks than for large NSE stocks

is the risk associated with secondary market transactions

increases whenever interest rates increase.

Detailed SolutionLiquidity risk_____________.

10. In order to determine the compound growth rate of an investment over some period, an investor would calculate the_____________.

arithmetic mean

geometric mean

calculus mean

arithmetic median

Detailed SolutionIn order to determine the compound growth rate of an investment over some period, an investor would calculate the_____________.

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