Financial management Archives - Page 2 of 112 - MCQ and Quiz for Exams

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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