[amp_mcq option1=”stock extrinsic value” option2=”stock intrinsic value” option3=”dividend intrinsic value” option4=”stock intrinsic value” correct=”option2″]
Financial management
22. According to Black Scholes model, call option is well exercised on its
[amp_mcq option1=”mid buying date” option2=”expiry date” option3=”buying date” option4=”mid selling date” correct=”option2″]
Detailed SolutionAccording to Black Scholes model, call option is well exercised on its
23. The Markowitz model assumes most investors are_____________.
[amp_mcq option1=”risk averse” option2=”risk neutral” option3=”risk seekers” option4=”risk moderators” correct=”option1″]
Detailed SolutionThe Markowitz model assumes most investors are_____________.
24. Miller- Orr Model is suitable in those circumstances when the ________.
[amp_mcq option1=”Demand for cash is steady” option2=”Demand for cash is not steady” option3=”Carry cost and transaction cost are to be kept at minimum” option4=”Demand for cash is variable” correct=”option4″]
Detailed SolutionMiller- Orr Model is suitable in those circumstances when the ________.
25. A technique of lowering risk for multinational companies and globally designed portfolios is classified as
[amp_mcq option1=”national diversification” option2=”behavioral diversification” option3=”global diversification” option4=”behavioral finance” correct=”option3″]
26. A model for optimizing the selection of securities is the ______ model.
[amp_mcq option1=”Miller-Orr” option2=”Black-Sholes” option3=”Markowitz” option4=”Gordon” correct=”option3″]
Detailed SolutionA model for optimizing the selection of securities is the ______ model.
27. Types of option markets do not include
[amp_mcq option1=”European option” option2=”American option” option3=”expiry option” option4=”covered options” correct=”option3″]
28. Dividends paid to common shareholders and divided by common shares outstanding are equals to
[amp_mcq option1=”earning per share” option2=”dividends per share” option3=”book value of share” option4=”market value of shares” correct=”option2″]
29. A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio?
[amp_mcq option1=”20%” option2=”50%” option3=”10%” option4=”40%” correct=”option3″]
30. An option which can be exercised any desired time before an expiry date is classified as
[amp_mcq option1=”Australian option” option2=”money option” option3=”European option” option4=”American option” correct=”option4″]