Financial management Archives - Page 4 of 112 - MCQ and Quiz for Exams

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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