Detailed SolutionThe highest level of market efficiency is_____________.
Financial management
weak form efficiency
semi-strong form efficiency
random walk efficiency
strong form efficiency
Answer is Right!
Answer is Wrong!
12. When price of bond is calculated below its par value, it is classified as
classified bond
discount bond
compound bond
consideration earning
Answer is Right!
Answer is Wrong!
Detailed SolutionWhen price of bond is calculated below its par value, it is classified as
13. In financial planning, formula MAX [current price of stock-strike price, 0] is used to calculate
option return rate
exercise value
option value
stock value
Answer is Right!
Answer is Wrong!
14. A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as
amortized loan
depreciated loan
appreciated loan
repaid payments
Answer is Right!
Answer is Wrong!
15. Dividend irrelevance argument of MM Model is based on:
Issue of Debentures
Issue of Bonus Share
Arbitrage
Hedging
Answer is Right!
Answer is Wrong!
Detailed SolutionDividend irrelevance argument of MM Model is based on:
16. Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as
financial instruments
capital assets
primary assets
competitive instruments
Answer is Right!
Answer is Wrong!
17. Which of the following is a risk factor in capital budgeting?
Industry specific risk factors
Competition risk factors
Project specific risk factors
All of the above
Answer is Right!
Answer is Wrong!
Detailed SolutionWhich of the following is a risk factor in capital budgeting?
18. Partners who are only liable for their own part of investment are considered as
venture partners
corporate partners
limited partners
general partners
Answer is Right!
Answer is Wrong!
Detailed SolutionPartners who are only liable for their own part of investment are considered as
19. In expected rate of return for constant growth, stock price must grow according to an expected rate and
at same price
at different price
at yielded price
at buying price
Answer is Right!
Answer is Wrong!
20. In Risk-adjusted Discount Rate method, which one is adjusted?
Cash flows
Life of the proposal
Rate of discount
Salvage value
Answer is Right!
Answer is Wrong!
Detailed SolutionIn Risk-adjusted Discount Rate method, which one is adjusted?