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

31. If payment of security is paid as Rs 100 at end of year for three years, it is an example of

fixed payment investment

lump sum amount

fixed interval investment

annuity

Detailed SolutionIf payment of security is paid as Rs 100 at end of year for three years, it is an example of

32. Investors seeking to avoid actively managing their portfolios will prefer which of the following assets?

Common stock

Commercial bank deposits

Financial futures

Real estate

Detailed SolutionInvestors seeking to avoid actively managing their portfolios will prefer which of the following assets?

33. Business risk can be measured by:

Financial leverage

Operating leverage

Combined leverage

None of the above

Detailed SolutionBusiness risk can be measured by:

34. Which of the following is not a motive to hold cash?

Transactionary Motive

Precautionary Motive

Capital Investment

None of the above

Detailed SolutionWhich of the following is not a motive to hold cash?

35. Rate of required return by debt holders is used for estimation the

cost of debt

cost of equity

cost of internal capital

cost of reserve assets

Detailed SolutionRate of required return by debt holders is used for estimation the

36. An increasing in interest rate leads to decline in value of

junk bonds

outstanding bonds

standing bonds

premium bonds

Detailed SolutionAn increasing in interest rate leads to decline in value of

37. In expected future returns, tighter probability distribution shows risk on given investment which is

smaller

greater

less risky

highly risky

Detailed SolutionIn expected future returns, tighter probability distribution shows risk on given investment which is

38. Payment of security if it is made at end of each period such as beginning of year is classified as

annuity due

payment fixed series

ordinary annuity

deferred annuity

Detailed SolutionPayment of security if it is made at end of each period such as beginning of year is classified as

39. Market in which bonds are traded over-the-counter than in an organized exchange is classified as

organized markets

trade markets

counter markets

bond markets

Detailed SolutionMarket in which bonds are traded over-the-counter than in an organized exchange is classified as

40. An internal rate of return in capital budgeting can be modified to make it representative of

relative outflow

relative inflow

relative cost

relative profitability

Detailed SolutionAn internal rate of return in capital budgeting can be modified to make it representative of

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