Financial management

31. Net present value is a popular method which falls

With in non- discount cash flow method
With in discount cash flow method
Equal With in non- discount cash flow method
No discount cash flow

Detailed SolutionNet present value is a popular method which falls

32. Relationship between risk and required return is classified as

security market line
required return line
market risk line
risky return line

Detailed SolutionRelationship between risk and required return is classified as

33. Method and model used to analyze relationship between rates of return and risk is classified as

capital asset pricing model
portfolio asset pricing model
asset market pricing model
portfolio pricing model

Detailed SolutionMethod and model used to analyze relationship between rates of return and risk is classified as

34. A lease which is generally not cancellable and covers full economic life of the asset is known as:

Sale and Leaseback
Operating Lease
Finance Lease
Economic Lease

Detailed SolutionA lease which is generally not cancellable and covers full economic life of the asset is known as:

35. Growth in earnings per share is primarily resultant of growth in

dividends
asset value
fundamental value
yearly value

Detailed SolutionGrowth in earnings per share is primarily resultant of growth in

36. Difference between the bank balance as per Cash Book and Pass Book may be due to:

Overdraft
Float
Factoring
None of the above

Detailed SolutionDifference between the bank balance as per Cash Book and Pass Book may be due to:

37. In capital asset pricing model, assumptions must be followed including

no taxes
no transaction costs
fixed quantities of assets
all of above

Detailed SolutionIn capital asset pricing model, assumptions must be followed including

38. In portfolio, beta of individual security in portfolio represented as their weighted average is classified as

average of portfolio
beta of portfolio
weighted portfolio
collective stocks

Detailed SolutionIn portfolio, beta of individual security in portfolio represented as their weighted average is classified as

39. If market interest rates are expected to rise, you would expect___________.

bond prices to fall more than stock prices
bond prices to rise more than stock prices
stock prices to fall more than bond prices
stock prices to rise and bond prices to fall.

Detailed SolutionIf market interest rates are expected to rise, you would expect___________.

40. The basic objective of Tandon Committee recommendations is that the dependence of industry on bank should gradually:

Increase
Remain Stable
Decrease
None of the above

Detailed SolutionThe basic objective of Tandon Committee recommendations is that the dependence of industry on bank should gradually:

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