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

31. A market interest rate for specific type of bond is classified as bonds

required rate of return

required option

required rate of redemption

required rate of earning

Detailed SolutionA market interest rate for specific type of bond is classified as bonds

32. Corporate associations who have common bonds being employees of same firm are classified as

credit unions

debit unions

preferred unions

solving unions

Detailed SolutionCorporate associations who have common bonds being employees of same firm are classified as

33. An average return of portfolio divided by its standard deviation is classified as

Jensen's alpha

Treynor's variance to volatility ratio

Sharpe's reward to variability ratio

Treynor's reward to volatility ratio

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

growth date

terminal date

horizon date

Both B and C

Detailed SolutionDividend will grow at non-constant rate for N periods and periods such as N is classified as

35. Current value of stock in portfolio with current option price Rs 20 is Rs 50, then present value of portfolio would be

Rs 30.00

Rs 70.00

Rs 40.00

Rs 80.00

Detailed SolutionCurrent value of stock in portfolio with current option price Rs 20 is Rs 50, then present value of portfolio would be

36. Second step in calculating value of stock with non-constant growth rate is to find out an

expected intrinsic stock

extrinsic stock

expected price of stock

intrinsic stock

Detailed SolutionSecond step in calculating value of stock with non-constant growth rate is to find out an

37. In options pricing, an exercise price rises from lower to higher which leads to

volatile options

option value increases

option value decreases

option value stable

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

CAPM stock beta

economic stock beta

CAPM portfolio beta

CAPM realized beta

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

More than its par value

Seasoned par value

At par value

Below its par value

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?

Cost of capital

Composition of the current assets

Size of the company

Expected nature of cash flows

Detailed SolutionWhich of the following factors does not affect the capital structure of a company?

Page 1 Page 2 Page 3 Page 4 Page 5

Test 1 Test 2 Test 3 Test 4 Test 5 Test 6 Test 7 Test 8 Test 9 Test 10 Test 11 Test 12 Test 13 Test 14 Test 15 Test 16 Test 17 Test 18 Test 19 Test 20 Test 21 Test 22 Test 23

Exit mobile version