[amp_mcq option1=”extremely volatile” option2=”less volatile” option3=”stable stock” option4=”unstable price stock” correct=”option2″]
Financial management
42. In option pricing, an increasing in option price due to
[amp_mcq option1=”time of expiry increases” option2=”time of expiry decreases” option3=”exchange time increases” option4=”exchange time decreases” correct=”option1″]
Detailed SolutionIn option pricing, an increasing in option price due to
43. In expected rate of return for constant growth, expected total rate of return is equal to
[amp_mcq option1=”buying pricing” option2=”dividend yield” option3=”rate of return” option4=”selling pricing” correct=”option3″]
44. Stock with large amount of contribution of risk in a diversified portfolio is represented by
[amp_mcq option1=”high beta and standard deviation” option2=”high beta, low standard deviation” option3=”low beta, low standard deviation” option4=”low beta, low variance” correct=”option1″]
45. Commercial paper is a type of:
[amp_mcq option1=”Fixed coupon Bond” option2=”Unsecured short-term debt” option3=”Equity share capital” option4=”Government Bond” correct=”option2″]
46. Type of partnership in which liabilities are limited for business owners is classified as
[amp_mcq option1=”unlimited partnership” option2=”limited partnership” option3=”joint corporate” option4=”joint venture” correct=”option2″]
47. Financial security with low degree risk and investment held by businesses is classified as
[amp_mcq option1=”treasury bills” option2=”commercial paper” option3=”negotiable certificate of deposit” option4=”money market mutual funds” correct=”option4″]
48. Required return is 11% and premium for risk is 8% then risk free return will be
[amp_mcq option1=”3.00%” option2=”19.00%” option3=”0.72%” option4=”1.38%” correct=”option1″]
Detailed SolutionRequired return is 11% and premium for risk is 8% then risk free return will be
49. Minimum Rate of Return that a firm must earn in order to satisfy its investors, is also known as:
[amp_mcq option1=”Average Return on Investment” option2=”Weighted Average Cost of Capital” option3=”Net Profit Ratio” option4=”Average Cost of borrowing” correct=”option2″]
50. In lease system, interest is calculated on:
[amp_mcq option1=”Cash down payment” option2=”Cash price outstanding” option3=”Hire purchase price” option4=”None of the above” correct=”option3″]
Detailed SolutionIn lease system, interest is calculated on: