market portfolio
return portfolio
correlated portfolio
diversified portfolio
Answer is Right!
Answer is Wrong!
Detailed SolutionA portfolio consists of all stocks in a market is classified as
Financial management
42. Tracking stock of company is also classified as
target stock
dividend stock
firm part stock
tied stock
Answer is Right!
Answer is Wrong!
Detailed SolutionTracking stock of company is also classified as
43. Which of the following is correct?
CL = OL + FL
CL = OL - FL
OL = OL รย FL
OL = OL รยท FL
Answer is Right!
Answer is Wrong!
44. Which of the following is not true for MM Model?
Share price goes up if dividend is paid
Share price goes down if dividend is not paid
Market value is unaffected by Dividend policy
All of the above
Answer is Right!
Answer is Wrong!
Detailed SolutionWhich of the following is not true for MM Model?
45. Current value of stock included in portfolio is subtracted from current option price to calculate
future value of stock
present value of portfolio
future value of portfolio
present value of stock
Answer is Right!
Answer is Wrong!
46. Value of stock is Rs 1000 and current value of portfolio is Rs 1500 then obligation to cover call option will be
Rs 6,667.00
Rs 2,500.00
Rs 2,000.00
Rs 500.00
Answer is Right!
Answer is Wrong!
47. Beta measures the ________.
Investment risk rate
Financial risk
Market risk
Market and finance risk
Answer is Right!
Answer is Wrong!
48. Financial planning starts with the preparation of:
Master Budget
Cash Budget
Balance Sheet
None of the above
Answer is Right!
Answer is Wrong!
Detailed SolutionFinancial planning starts with the preparation of:
49. A project whose cash flows are more than capital invested for rate of return then net present value will be
positive
independent
negative
zero
Answer is Right!
Answer is Wrong!
50. Profitability index in capital budgeting is used for
negative projects
relative projects
evaluate projects
earned projects
Answer is Right!
Answer is Wrong!
Detailed SolutionProfitability index in capital budgeting is used for