[amp_mcq option1=”weak form efficiency” option2=”semi-strong form efficiency” option3=”random walk efficiency” option4=”strong form efficiency” correct=”option4″]
Detailed SolutionThe highest level of market efficiency is_____________.
Financial management
12. When price of bond is calculated below its par value, it is classified as
[amp_mcq option1=”classified bond” option2=”discount bond” option3=”compound bond” option4=”consideration earning” correct=”option2″]
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
[amp_mcq option1=”option return rate” option2=”exercise value” option3=”option value” option4=”stock value” correct=”option3″]
14. A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as
[amp_mcq option1=”amortized loan” option2=”depreciated loan” option3=”appreciated loan” option4=”repaid payments” correct=”option1″]
15. Dividend irrelevance argument of MM Model is based on:
[amp_mcq option1=”Issue of Debentures” option2=”Issue of Bonus Share” option3=”Arbitrage” option4=”Hedging” correct=”option3″]
Detailed SolutionDividend irrelevance argument of MM Model is based on:
16. Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as
[amp_mcq option1=”financial instruments” option2=”capital assets” option3=”primary assets” option4=”competitive instruments” correct=”option1″]
17. Which of the following is a risk factor in capital budgeting?
[amp_mcq option1=”Industry specific risk factors” option2=”Competition risk factors” option3=”Project specific risk factors” option4=”All of the above” correct=”option4″]
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
[amp_mcq option1=”venture partners” option2=”corporate partners” option3=”limited partners” option4=”general partners” correct=”option3″]
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
[amp_mcq option1=”at same price” option2=”at different price” option3=”at yielded price” option4=”at buying price” correct=”option1″]
20. In Risk-adjusted Discount Rate method, which one is adjusted?
[amp_mcq option1=”Cash flows” option2=”Life of the proposal” option3=”Rate of discount” option4=”Salvage value” correct=”option3″]
Detailed SolutionIn Risk-adjusted Discount Rate method, which one is adjusted?