[amp_mcq option1=”required rate of return” option2=”required option” option3=”required rate of redemption” option4=”required rate of earning” correct=”option1″]
Detailed SolutionA market interest rate for specific type of bond is classified as bonds
Financial management
32. Corporate associations who have common bonds being employees of same firm are classified as
[amp_mcq option1=”credit unions” option2=”debit unions” option3=”preferred unions” option4=”solving unions” correct=”option1″]
33. An average return of portfolio divided by its standard deviation is classified as
[amp_mcq option1=”Jensen’s alpha” option2=”Treynor’s variance to volatility ratio” option3=”Sharpe’s reward to variability ratio” option4=”Treynor’s reward to volatility ratio” correct=”option3″]
Detailed SolutionAn average return of portfolio divided by its standard deviation is classified as
34. Dividend will grow at non-constant rate for N periods and periods such as N is classified as
[amp_mcq option1=”growth date” option2=”terminal date” option3=”horizon date” option4=”Both B and C” correct=”option3″]
35. Current value of stock in portfolio with current option price Rs 20 is Rs 50, then present value of portfolio would be
[amp_mcq option1=”Rs 30.00″ option2=”Rs 70.00″ option3=”Rs 40.00″ option4=”Rs 80.00″ correct=”option3″]
36. Second step in calculating value of stock with non-constant growth rate is to find out an
[amp_mcq option1=”expected intrinsic stock” option2=”extrinsic stock” option3=”expected price of stock” option4=”intrinsic stock” correct=”option4″]
37. In options pricing, an exercise price rises from lower to higher which leads to
[amp_mcq option1=”volatile options” option2=”option value increases” option3=”option value decreases” option4=”option value stable” correct=”option3″]
Detailed SolutionIn options pricing, an exercise price rises from lower to higher which leads to
38. First factor in Fama French three factor model is
[amp_mcq option1=”CAPM stock beta” option2=”economic stock beta” option3=”CAPM portfolio beta” option4=”CAPM realized beta” correct=”option1″]
Detailed SolutionFirst factor in Fama French three factor model is
39. If coupon rate is more than current rate of interest then bond will be sold
[amp_mcq option1=”More than its par value” option2=”Seasoned par value” option3=”At par value” option4=”Below its par value” correct=”option1″]
Detailed SolutionIf coupon rate is more than current rate of interest then bond will be sold
40. Which of the following factors does not affect the capital structure of a company?
[amp_mcq option1=”Cost of capital” option2=”Composition of the current assets” option3=”Size of the company” option4=”Expected nature of cash flows” correct=”option3″]
Detailed SolutionWhich of the following factors does not affect the capital structure of a company?