Financial management

[amp_mcq option1=”dividend policy” option2=”market risk” option3=”historical policy” option4=”Both A and B” correct=”option4″]

Detailed SolutionIn arbitrage pricing theory, required returns are functioned of two factors which have

[amp_mcq option1=”European option” option2=”American option” option3=”Australian option” option4=”money option” correct=”option1″]

Detailed SolutionType of option which cannot be exercised before an expiry date which is classified as

[amp_mcq option1=”out-of-the-portfolio” option2=”in-the-portfolio” option3=”in-the-money” option4=”out-of-the-money” correct=”option4″]

Detailed SolutionCall options situation in which strike price is greater than current price of stock is classified as

[amp_mcq option1=”The yield earned by investors has been, on average, in conformity with their expectations” option2=”The dividends will continue growing at a constant rate forever” option3=”The market price will continue growing at a constant rate forever” option4=”Both a and b” correct=”option1″]

Detailed SolutionWhich of the following is / are assumption behind the realized yield approach?

[amp_mcq option1=”semi-annual discounting” option2=”annual discounting” option3=”annual compounding” option4=”semi-annual compounding” correct=”option4″]

Detailed SolutionFuture value of interest if it is calculated two times a year can be a classified as

[amp_mcq option1=”capital gain” option2=”growth gain” option3=”regular yield” option4=”variable yield” correct=”option1″]

Detailed SolutionCapital gains yield is multiplied for beginning price to calculate

[amp_mcq option1=”0.1123 times” option2=”11.23%” option3=”11.23 times” option4=”Rs 11.23″ correct=”option2″]

Detailed SolutionStock selling price is Rs 65, expected dividend is Rs 20 and cost of common stock is 42% then expected growth rate will be

[amp_mcq option1=”exchange traded fund” option2=”management expense” option3=”money trade fund” option4=”capital trade fund” correct=”option1″]

Detailed SolutionMutual fund allows investors to sale out their share during any normal trading hours is classified as

[amp_mcq option1=”stock risk” option2=”portfolio risk” option3=”diversifiable risk” option4=”market risk” correct=”option2″]

Detailed SolutionRisk which is caused by events such as strikes, unsuccessful marketing programs and other lawsuits is classified as

[amp_mcq option1=”municipal bonds” option2=”corporate bonds” option3=”U.S treasury bonds” option4=”mortgages” correct=”option4″]

Detailed SolutionType of financial security in which loans are secured by borrower’s property is classified as