Financial management

11. Riskless rate in addition with risk premium is multiplied by standard deviation of portfolio for using to calculate expected return rate on

efficient portfolio
inefficient portfolio
attributable portfolio
non-attributable portfolio

Detailed SolutionRiskless rate in addition with risk premium is multiplied by standard deviation of portfolio for using to calculate expected return rate on

12. All partners have limited liability in

unlimited liability partnership
limited liability partnership
controlled partnership
uncontrolled partnership

Detailed SolutionAll partners have limited liability in

13. Sum of discounted cash flows is best defined as

technical equity
defined future value
project net present value
equity net present value

Detailed SolutionSum of discounted cash flows is best defined as

14. In capital budgeting, an internal rate of return of project is classified as its

external rate of return
internal rate of return
positive rate of return
negative rate of return

Detailed SolutionIn capital budgeting, an internal rate of return of project is classified as its

15. Greater the size of a business unit ________ will be the requirements of working capital.

larger
lower
no change
fixed

Detailed SolutionGreater the size of a business unit ________ will be the requirements of working capital.

16. In stock dividend:

Authorized capital always increases
Paid up capital always increases
Face value per share decreases
Market price for share decreases

Detailed SolutionIn stock dividend:

17. An inflation rate including in quoted interest rate on security, is inflation rate

expected over security life
expected at deferred call
at bond issuance
expected at time of maturity

Detailed SolutionAn inflation rate including in quoted interest rate on security, is inflation rate

18. An unmanaged fixed income security portfolio handled by an independent trustee is known as a______________.

junk bond fund
closed-end investment company
unit investment trust
hedge fund

Detailed SolutionAn unmanaged fixed income security portfolio handled by an independent trustee is known as a______________.

19. Government spending, if it exceeds federal government tax revenues then it is classified as

Federal Reserve
federal budget
budget surplus
budget deficit

Detailed SolutionGovernment spending, if it exceeds federal government tax revenues then it is classified as

20. The price to book value ratio tends to be close for_____________.

high-tech companies
banks
utilities
service companies

Detailed SolutionThe price to book value ratio tends to be close for_____________.

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