Financial management

21. Stock which has higher correlation with market tend to have

high beta, less risky
low beta, more risky
high beta, more risky
low beta, less risky

Detailed SolutionStock which has higher correlation with market tend to have

22. Which of the following is not a type of dividend payment?

Bonus Issue
Right Issue
Share Split
Both B and C

Detailed SolutionWhich of the following is not a type of dividend payment?

23. In binomial approach of option pricing model, last step for finding an option is

price hike
price value
put price
call price

Detailed SolutionIn binomial approach of option pricing model, last step for finding an option is

24. ___________ shifts the weights of securities in the portfolio to take advantage of areas that is expected to do relatively better than other areas.

portfolio management
market timing
momentum strategy
sector rotation

Detailed Solution___________ shifts the weights of securities in the portfolio to take advantage of areas that is expected to do relatively better than other areas.

25. Which of the following is true for a company which uses continuous review inventory system?

Order Interval is fixed
Order Interval varies
Order Quantity is fixed
Both A and C

Detailed SolutionWhich of the following is true for a company which uses continuous review inventory system?

26. A bond whose price will rise above its face value is classified as

premium face value
premium bond
premium stock
premium warrants

Detailed SolutionA bond whose price will rise above its face value is classified as

27. Depreciation is incorporated in cash flows because it:

is unavoidable cost
is a cash flow
reduces tax liability
involves an outflow

Detailed SolutionDepreciation is incorporated in cash flows because it:

28. In BSE shares are divided into_______________.

two categories
three categories
four categories
five categories

Detailed SolutionIn BSE shares are divided into_______________.

29. Relationship between risk free asset and a single risky asset are always

linear
non-linear
efficient
effective

Detailed SolutionRelationship between risk free asset and a single risky asset are always

30. Price of an outstanding bond increases when market rate

never changes
increases
decreases
earned

Detailed SolutionPrice of an outstanding bond increases when market rate

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