Financial management Archives

31. Case in which average investors risk aversion is greater than slope of line and risk premium respectively is

steeper, greater

steeper, smaller

steeper, zero

Both A and B

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slope of line and risk premium respectively is" class="read-more button" href="https://exam.pscnotes.com/mcq/case-in-which-average-investors-risk-aversion-is-greater-than-slope-of-line-and-risk-premium-respectively-is/#more-48828">Detailed Solution

32. The decision function of financial management can be broken down into the__________ decisions.

financing and investment

investment, financing, and asset management

financing and dividend

capital budgeting, cash management, and credit management

Detailed SolutionThe decision

function of financial management can be broken down into the__________ decisions.

33. A company who issues bonds or stocks in result raised funds which finally

increases liabilities

increases equity

increases cash

decreases cash

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which finally" class="read-more button" href="https://exam.pscnotes.com/mcq/a-company-who-issues-bonds-or-stocks-in-result-raised-funds-which-finally/#more-48793">Detailed Solution

34. Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be

negative

zero

positive

independent

Detailed SolutionProject whose cash flows are sufficient to repay capital invested

for rate of return then net present value will be

35. International investing is________________.

is only practical for institutional investors

increases the overall risk of a stock portfolio

always leads to higher returns than a domestic portfolio

Detailed SolutionInternational investing is________________.

36. Marketable securities are primarily:

Equity shares

Preference shares

Fixed deposits with companies

Short-term debt investments

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primarily:" class="read-more button" href="https://exam.pscnotes.com/mcq/marketable-securities-are-primarily/#more-48769">Detailed Solution

37. Traditional theorists believe that.

there exists an optimal capital structure

no optimal capital structure

equal optimal capital structure

100% debt financial organizations

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theorists believe that." class="read-more button" href="https://exam.pscnotes.com/mcq/traditional-theorists-believe-that/#more-48767">Detailed Solution

38. If the Real rate of return is 10% and Inflation rate is 40%, then Money Discount Rate is:

14.40%

2.50%

25%

14%

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viewBox="0 0 576 512"> Subscribe on YouTube then Money Discount Rate is:" class="read-more button" href="https://exam.pscnotes.com/mcq/if-the-real-rate-of-return-is-10-and-inflation-rate-is-40-then-money-discount-rate-is/#more-48759">Detailed Solution

39. Stocks in market portfolio are graphically represented with

dashed line

straight line

market line

risk line

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button" href="https://exam.pscnotes.com/mcq/stocks-in-market-portfolio-are-graphically-represented-with/#more-48739">Detailed Solution

40. In capital asset pricing model, investors assume that buying and selling activity will

affect stock prices

not affect stock prices

have high taxes

high transaction cost

Detailed SolutionIn

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capital asset pricing model, investors assume that buying and selling activity will

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