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Financial management

21. Present value of portfolio is Rs 1300 and current value of stock in portfolio is Rs 2300 then current option price will be

[amp_mcq option1=”Rs 3,600.00″ option2=”Rs 1,000.00″ option3=”Rs 1,250.00″ option4=”Rs 1,500.00″ correct=”option2″]

Detailed SolutionPresent value of portfolio is Rs 1300 and current value of stock in portfolio is Rs 2300 then current option price will be

22. Bonds that have high liquidity premium are usually have

[amp_mcq option1=”inflated trading” option2=”default free trading” option3=”less frequently traded” option4=”frequently traded” correct=”option3″]

Detailed SolutionBonds that have high liquidity premium are usually have

23. An exercise of option in future and part of option call value depends specifically on

[amp_mcq option1=”PV of exercising cost” option2=”FV of exercising cost” option3=”PV of cost volatility” option4=”FV of cost volatility” correct=”option1″]

Detailed SolutionAn exercise of option in future and part of option call value depends specifically on

24. The time required to process and execute an order is called

[amp_mcq option1=”allowed time” option2=”lead time” option3=”accepted time” option4=”fixed time” correct=”option2″]

Detailed SolutionThe time required to process and execute an order is called

25. In expected rate of return for constant growth, capital gains is divided by capital gains yield to calculate

[amp_mcq option1=”returning price” option2=”ending price” option3=”beginning price” option4=”regular price” correct=”option3″]

Detailed SolutionIn expected rate of return for constant growth, capital gains is divided by capital gains yield to calculate

26. Companies that help to set benchmarks are classified as

[amp_mcq option1=”competitive companies” option2=”benchmark companies” option3=”analytical companies” option4=”return companies” correct=”option2″]

Detailed SolutionCompanies that help to set benchmarks are classified as

27. Net income available to stockholders is Rs 125 and total assets are Rs 1,096 then return on common equity would be

[amp_mcq option1=”0.11%” option2=”11.40%” option3=”0.12 times” option4=”12.00%” correct=”option2″]

Detailed SolutionNet income available to stockholders is Rs 125 and total assets are Rs 1,096 then return on common equity would be

28. An investor who buys shares and writes a call option on stock is classified as

[amp_mcq option1=”put investor” option2=”call investor” option3=”hedger” option4=”volatile hedge” correct=”option3″]

Detailed SolutionAn investor who buys shares and writes a call option on stock is classified as

29. The value of bond depends on ____________.

[amp_mcq option1=”the coupon rate” option2=”years to maturity” option3=”expected yield to maturity” option4=”all the above” correct=”option4″]

Detailed SolutionThe value of bond depends on ____________.

30. Operating incomes and the discount rate of a particular risk class are the 2 factors determining ____________.

[amp_mcq option1=”Dependence hypothesis” option2=”Traditional view” option3=”Modern view” option4=”Independence hypothesis” correct=”option3″]

Detailed SolutionOperating incomes and the discount rate of a particular risk class are the 2 factors determining ____________.

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