[amp_mcq option1=”market interest rate” option2=”current yield” option3=”stated interest rate” option4=”yield to maturity” correct=”option3″]
Detailed SolutionThe coupon rate is another name for the__________.
Financial management
12. In asset portfolio, number of stocks are increased to
[amp_mcq option1=”reduce return” option2=”reduce average” option3=”reduce risk” option4=”increase prices” correct=”option3″]
Detailed SolutionIn asset portfolio, number of stocks are increased to
13. Bond’s promised rate of return is also considered as
[amp_mcq option1=”yield to earning” option2=”yield to investors” option3=”yield to maturity” option4=”yield to return” correct=”option3″]
Detailed SolutionBond’s promised rate of return is also considered as
14. Second step in binomial approach of option pricing is to define range of values
[amp_mcq option1=”at expiration” option2=”at buying date” option3=”at exchange closing time” option4=”at exchange opening time” correct=”option1″]
Detailed SolutionSecond step in binomial approach of option pricing is to define range of values
15. Risk of a Capital budgeting can be incorporated:
[amp_mcq option1=”Adjusting the cash flows” option2=”Adjusting the discount rate” option3=”Adjusting the life” option4=”All of the above” correct=”option4″]
Detailed SolutionRisk of a Capital budgeting can be incorporated:
16. Cost of common stock is 14% and bond risk premium is 9% then bond yield will be
[amp_mcq option1=”1.56%” option2=”5.00%” option3=”23.00%” option4=”64.28%” correct=”option2″]
Detailed SolutionCost of common stock is 14% and bond risk premium is 9% then bond yield will be
17. Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be
[amp_mcq option1=”16.75%” option2=”2.68%” option3=”0.37%” option4=”9.20%” correct=”option1″]
Detailed SolutionReturn on assets = 6.7% and equity multiplier = 2.5% then return on equity will be
18. An option that gives investors right to sell a stock at predefined price is classified as
[amp_mcq option1=”put option” option2=”call option” option3=”money back options” option4=”out of money options” correct=”option1″]
19. Miller-Orr Model deals with
[amp_mcq option1=”Optimum Cash Balance” option2=”Optimum Finished Goods” option3=”Optimum Receivables” option4=”All of the above” correct=”option1″]
20. Which of the following would be considered a risk-free investment?
[amp_mcq option1=”Gold” option2=”Equity in a house” option3=”High-grade corporate bonds” option4=”Treasury bills” correct=”option4″]
Detailed SolutionWhich of the following would be considered a risk-free investment?