Financial management

21. Markets where assets are bought or sold within a few days or at some future dates are classified as

spot markets
future markets
Both A and B
financial instruments

Detailed SolutionMarkets where assets are bought or sold within a few days or at some future dates are classified as

22. An average return of portfolio divided by its coefficient of beta is classified as

Sharpe's reward to variability ratio
treynor's reward to volatility ratio
Jensen's alpha
treynor's variance to volatility ratio

Detailed SolutionAn average return of portfolio divided by its coefficient of beta is classified as

23. Stock portfolio with lowest book for market ratios is considered as

S portfolio
B to M portfolio
H portfolio
L portfolio

Detailed SolutionStock portfolio with lowest book for market ratios is considered as

24. A techniques uses to identify financial statements trends are included

common size analysis
percent change analysis
returning ratios analysis
Both A and B

Detailed SolutionA techniques uses to identify financial statements trends are included

25. Realized and required return for individual stocks are classified as function of fundamental

arbitrage factors
economic factors
portfolio factors
realized theory factors

Detailed SolutionRealized and required return for individual stocks are classified as function of fundamental

26. In expected rate of return for constant growth, capital gains is divided by beginning price to calculate

yield of loan return
yield of mortgage return
yield of capital gains
yield of fixed cost

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

27. Price per share is Rs 30 and an earning per share is Rs 3.5 then price for earning ratio would be

8.57 times
8.57%
0.11 times
11.00%

Detailed SolutionPrice per share is Rs 30 and an earning per share is Rs 3.5 then price for earning ratio would be

28. Type of interest rates consist of

nominal rates
periodic rates
effective annual rates
all of above

Detailed SolutionType of interest rates consist of

29. Underlying all investments is the trade-off between_________.

expected return and actual return
low risk and high risk
actual return and high risk
expected return and risk

Detailed SolutionUnderlying all investments is the trade-off between_________.

30. In the weekly efficient market, the stock price reflects.

the company's financial performance
the past price of the scrip
the demand for the scrip
the past price and traded volumes

Detailed SolutionIn the weekly efficient market, the stock price reflects.

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