Financial management Archives - Page 3 of 112 - MCQ and Quiz for Exams

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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