[amp_mcq option1=”inflation premium” option2=”off season premium” option3=”nominal premium” option4=”required premium” correct=”option1″]
Detailed SolutionAn average inflation rate which is expected over life of security is classified as
Financial management
12. A premium which reflects possibility of issuer who does not pay principal amount of bonds is called
[amp_mcq option1=”seasoned risk premium” option2=”nominal risk premium” option3=”default risk premium” option4=”quoted risk premium” correct=”option3″]
13. Constant growth model would not be used in condition if growth rate is
[amp_mcq option1=”greater than dividend paid” option2=”equal to realized rate of return” option3=”less than realized rate of return” option4=”greater than realized rate of return” correct=”option1″]
Detailed SolutionConstant growth model would not be used in condition if growth rate is
14. Size of firm and market or book ratio are variables which are related to
[amp_mcq option1=”premium returns” option2=”unquoted returns” option3=”quoted returns” option4=”stock returns” correct=”option4″]
Detailed SolutionSize of firm and market or book ratio are variables which are related to
15. Third factor in Fama French three factor model is ratio which is classified as
[amp_mcq option1=”book to market ratio” option2=”market to book ratio” option3=”company to industry ratio” option4=”stock to portfolio ratio” correct=”option2″]
Detailed SolutionThird factor in Fama French three factor model is ratio which is classified as
16. New York Stock Exchange’ is an example of
[amp_mcq option1=”capital markets” option2=”money markets” option3=”liquid markets” option4=”short-term markets” correct=”option1″]
17. Values of assets purchased or liabilities recorded as recorded by bookkeepers are considered as
[amp_mcq option1=”appreciated values” option2=”depreciated values” option3=”market values” option4=”book values” correct=”option4″]
18. An expected dividend yield is added into expected growth rate to calculate
[amp_mcq option1=”dividend return” option2=”expected rate of return” option3=”expected capital” option4=”invested capita” correct=”option2″]
Detailed SolutionAn expected dividend yield is added into expected growth rate to calculate
19. Which of the following is not included in cost of inventory?
[amp_mcq option1=”Purchase Cost” option2=”Transport in Cost” option3=”Import Duty” option4=”Selling Costs” correct=”option4″]
Detailed SolutionWhich of the following is not included in cost of inventory?
20. If an investor is attempting to buy a stock that is very volatile, it would be best to use___________.
[amp_mcq option1=”market order” option2=”limit order” option3=”stop-loss order” option4=”contingency order.” correct=”option3″]